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Forex factoryHow to Use the Forex Factory Calendar: The Definitive Guide. The Forex Factory Calendar is by far the most user-friendly and accurate calendar to keep track of Forex-related news events. By the end of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial to your trading . But before we get into the details, I want to dispel a common misconception. Many technical traders make the mistake of thinking that, because they take a technical approach to the market, they don’t have to pay attention to news events. Free PDF Guide: Want to learn how to use the Forex Factory news calendar in 5 simple steps? Click here to download the exclusive PDF guide. While it isn’t necessary to study the news, it is advantageous to know when news is expected. This is especially true for heavy-hitting news that can adversely affect the market. Not only can this type of news affect an open position, it can cause slippage and gaps that can wreak havoc for pending orders. Here’s how you can use a Forex news calendar to start making more informed trading decisions. Step 1: Getting Started. The very first thing you want to do is navigate to the Forex Factory calendar.

Once there, you should be presented with a screen similar to the one below. Don’t be intimidated by all of the activity on this page. It will all make sense by the end of the tutorial. Next we will begin configuring the calendar so that you can get the most out of it. Step 2: Configuring Your Time Zone. Now that you’re on the calendar tab, you will want to set your time zone. To do this, simply click the time in the upper right hand corner. After clicking the time stamp, you will be taken to a page where you can set your time zone. This will synchronize the time for each news event with your local time. Note: Setting the correct time zone is extremely important. If not set, it will be difficult to determine the correct time for each news event. At this point you also have the option to turn Daylight Savings Time (DST) on or off. Lastly you can toggle the time format to show either ampm or 24 hour “military time”.

Once you are happy with the settings, click “Save Settings” so that you won’t be required to do this each time. As long as your browser’s cache is not cleared, your settings will remain the same each time you revisit this page. After saving your settings, you should now see the correct time displayed in the upper right hand corner of the screen. If not, repeat step 2 to make sure your settings were saved properly. Step 3: Setting the Event Filter. At this point you should have the Forex Factory calendar in front of you with each news event synchronized with your local time. Next we are going to set the event filter to determine the type of news and currencies to display. This is convenient if you only want to display certain types of news events or are only interested in specific currency pairs. To set the filter, click the “Filter” icon in the upper right hand corner while on the calendar tab. After clicking “Filter”, you will get a screen like the one below. This screen gives you the ability to filter events by expected impact, event type as well as currency. Pro Tip: Hover your mouse over the colored boxes under “Expected Impact” to get an explanation of each one. In short, red equals high-impact, orange is medium-impact and yellow represents low-impact news. I personally like to focus on the medium and high-impact news events. This gives me a complete picture of what to expect over the coming days without cluttering the calendar with news that will have little impact on the markets. Once you have everything set the way you want, click “Apply Filter” to begin showing only the events and currencies you selected.

You can change this any time by repeating this step. Step 4: Selecting the Desired Time Frame. You should now have your time zone set and your filter configured the way you want. Now it’s time to select the desired time frame. This is the span of time that will be shown on the calendar. The navigation pane you see below will allow you to set any time frame you desire. From this window, you can choose a single day, a week or even the entire month. Also note that you can quickly select predetermined time frames in the bottom half of the navigation pane. Step 5: Digging Deeper. In addition to seeing the “surface content” such as the event name, expected impact and scheduled time, you can also expand each event to see additional information. Be sure to use this feature with caution. It can be far too easy to get caught up in the nuances of each event. As price action traders we need to be more concerned about what’s happening on the chart and less concerned about the fundamental significance of news. The image below illustrates how you can expand the details of a given news event.

Once the icon above is clicked, you will immediately see additional details of the event. From the screen above, you can see additional details such as the source, frequency and history of the event to name a few. To close this window, simply click the “X” shown in the image above. Before we move on, I want to reiterate how important it is to use these additional details sparingly, if at all. The real advantage to using a calendar as a technical trader lies in the scheduled time and expected impact of the news. Anything more than that and using a news calendar can become more of a distraction than an asset. That concludes the process of setting up the Forex Factory news calendar. Now let’s get into the second half of this tutorial and discuss how to use what you’ve just learned to your advantage when trading Forex price action. Choosing the Important Headlines. Knowing how to set up the Forex Factory calendar is one thing, knowing how to use it properly is quite another. The first thing to understand is that you only want to focus on the market-moving events.

This means setting the filter to include only the medium and high-impact news events. By doing this, you don’t have to sift through the low-impact news to find the events that are likely to cause increased volatility. Pro Tip: Below is a list of some of the major news events you should keep an eye on as you trade the Forex market. Federal Open Market Committee (FOMC) Nonfarm Payrolls (NFP) Unemployment rates Final Gross Domestic Product (GDP) Monetary policy announcements Any rate decision announcement from central banks. Before moving on, let’s recap what you have learned thus far. By now you should have the time zone, filter and time frame set for your calendar. You should know how to view additional details of a news event as well as which events are most likely to cause an increase in volatility. Next we will get into how to strategically position your trades around major news events so as to minimize your risk. Trading Around the News. The reason we want to use the Forex Factory calendar is to know when market-moving news is expected and thereby avoid or prepare for periods of high volatility. As such, I want to run through a few basic rules when it comes to trading around the news. All of the scenarios below assume that the news event in question would hypothetically impact your trade. For example, trading USDJPY with Nonfarm Payrolls (NFPs) on tap. No open positions ahead of news.

This is obviously the safest place to be with major news around the corner. You have nothing at risk and you get to objectively analyze the price action that forms as a result of the news. But what if the news isn’t just around the corner? How much time is needed between putting on a new position and a scheduled news event that could adversely affect that position? This is a hard question to answer as it depends on a few factors. The trader – Trading style and risk tolerance come to mind. Every trader is different and therefore has different requirements when it comes to how risk averse they are. The time frame – On average, a trade on the 4 hour chart will require less time between the entry and the pending news than a trade on the daily time frame. This is because, hypothetically speaking, a trade on the 4 hour chart has a greater chance of running to profit before the news event occurs. Distance to take profit – Aside from the time frame, the distance from the entry to the take profit also plays a role. A trade with a 50 pip profit target will require less time than a trade with a 300 pip target, hypothetically speaking of course. As a general rule, I like to see at least a 24 hour window in which there is no scheduled (major) news before putting on a trade. By “major” I’m referring to one of the events listed above.

This of course can change depending on the last two factors listed above. Open position – small profit. This scenario involves an open position that is in profit, but stands a good chance of turning negative if the news event in question adversely affects the position. We’ve all been there – that point of indecision before a major news event is about to hit. Should you close the trade and book a small profit to be safe? But then what if the market moves in favor of your position? If you close it now you risk missing out on potential profits. In my experience, most traders fear a missed opportunity more than they fear losing capital. This couldn’t be more wrong. Your number one job as a trader is capital preservation . Making money always comes second. The path I choose 95% of the time in this situation is to take my small profit and get out. I can always get back in later if the market presents a favorable opportunity. Just remember – when in doubt, get out. Open position – large profit. The last scenario we’re going to discuss is the second safest place to be behind having no open position, of course.

When a high impact news event is around the corner and you have a position that is well into profit, you have more options. It’s much easier to ride out a major news event if you know your position is 200 pips in the money. One thing that can influence your decision here is how far away your trade is from its profit target. Let’s assume this position was originally aiming for a 300 pip profit target and is now just 40 pips from the target. In this case I would be more likely to close the trade before the news event to book profits. To risk giving back 260 pips for an additional 40 pips isn’t the greatest of propositions. Your other options are to take a partial profit and leave the remaining position on or keep the entire position open throughout the event. I’m not a huge fan of taking partial profits so I usually opt to go all or nothing. But one thing is certain, you have a lot more options with a position that has run into considerable profit. Learning to "Read" the News. Now it’s time to bring it all together.

By now you should know how to configure your Forex Factory calendar as well as how to manage news events. Let’s finish up this tutorial by discussing how price action plays a role in all of this. I have written before about how to use the news to gauge market sentiment. However this time I want to talk about actually reading the news through the price action strategies that form on your chart. What is a pin bar, really? How about an inside bar? You probably know what they look like, but have you ever thought about why they form? These two strategies have a common thread – they are both the byproduct of news. Whether it be something that was just announced or a more gradual flow of news that causes market sentiment to either fluctuate or remain constant. In fact all Forex trading strategies are a byproduct of news in one way or another. However the pin bar and inside bar really embody the essence of how news can influence a market. Pin Bar. Some of the best pin bars form on the back of a major news event. In fact one of my favorite setups is the NFP pin bar. This is because NFPs are released at 8:30 am EST and the 4 hour candle on my New York close chart closes at 9am EST, giving the market thirty minutes to react.

The timing of a news event like this can often cause the price for US Dollar pairs to rise or fall quickly, thus forming a 4 hour pin bar. Of course it isn’t always the case, but when an NFP pin bar forms at a key level, it’s often worth taking. Inside Bar. The inside bar can be thought of as the opposite to the pin bar. While the pin bar represents a volatile push in either direction, the inside bar represents consolidation after a large move. So whereas the pin bar forms as news is released, the inside bar often forms the day after a news release. This is why the inside bar setup is often referred to as a type of breakout strategy. Before we end this section, I would like to point out that the news which causes these types of moves isn’t always immediately apparent. The markets can move because of an unscheduled event or perhaps an event that has already passed and the market is just now realizing the impact. Regardless of how or when the news occurs, the two strategies above give you a quick and easy way to read the news via your charts. We have covered a lot of material in this tutorial. Everything from how to configure the Forex Factory calendar to how to use it when trading price action. As such I would like to summarize some of the more important points to keep in mind when using the news calendar. First and foremost, the news calendar should never be used as a tool to help you enter the market. In other words, attempting to trade a news event for the volatility it causes is a surefire way to blow up a trading account. The calendar can, however, be a great way to keep track of upcoming events.

Knowing when these events are scheduled can help you make decisions about the timing of your entries. It’s also helpful if you have an open position as it gives you the opportunity to book profits before a potential increase in volatility. As a price action trader, you have a distinct advantage over other market participants using something other than price action. You have the ability to read the news through your charts using strategies such as the pin bar and inside bar. Just remember to stick to the daily and 4 hour time frames with the exception of the inside bar, which should only be traded on the daily time frame. Are you ready to start using the Forex Factory news calendar? If so, you definitely want to download the free PDF guide that I just created. It breaks down how to use the calendar in 5 simple steps and explains which news events produce the most volatility. Click the link below and enter your email to get instant access to the PDF guide. Forex Factory Calendar. Forex Factory Calendar review, all about Forex Factory Calendar app, Finding out what is Forex Factory Calendar .

Forex Factory Calendar. The Forex Calendar item is innovative to the point that it truly changed the way monetary logbooks are made. Before Forex Factory , timetables didn’t have affect evaluations, customizable time zones, detail sees, channels, connections to occasion sources, constant information discharges, monetary diagrams – and the rundown goes on. In any case, it takes significantly more than an extraordinary interface to convey a quality monetary timetable – ForexFactory utilizes an exceptionally prepared group of money related business analysts who work every minute of every day to guarantee the schedule is precise and careful. The Calendar is so amazing for its unwavering quality and mindfulness that many contending timetables utilize Forex Factory as their primary source! Presently you realize what is Forex Factory schedule and how to utilize ForexFactory news pointer application by this ForexFactory review, So tip us please by offer this audit on interpersonal organizations please. I spoke with two different traders this week about the Forex Factory Calendar which has prompted me to write an article on the topic. I didn’t realise that many Forex traders are not aware of Forex Factory or other similar sites that offer economic calendars. This is a little unsettling for me because I was very lucky to find out about Forex Factory very early on in my trading. Forex Factory is many things, but for me its main use is the economic calendar. They also offer trading forums and news plus it’s a really good community of traders over at the Forex Factory Forum. Economic calendars are very important for any trader who is trading the Forex market especially if they are using smaller time frames (smaller than daily). When you first start trading sometimes the market will move against you very rapidly and seemingly without reason, often this is due to news or financial data being released about one of the two currencies that you are trading.

Every day there is key data being released by different organisations and traders use this information to profit from the markets and to gauge overall economic health of a country and its underlying currency. Forex Factory will show you each day what you may need to look out for and why, it’s a must check resource for any trader. Below is an image which I have copied from the Forex Factory site. I have highlighted what I consider to be the two most important things that I look at. The smaller circle with the red forex factory logo inside is the impact of the news on the market with the time of the news release on the left. Red items suggest that usually the news will affect the currency, lots of the data that comes out each day has little immediate effect on the market and Forex Factory use a colour scheme to highlight potentially big data items. The second larger circle teaches you what to expect from the data release, often it will give you an example suggesting how traders react to the financial numbers being released. What happens in the currency markets is estimates are made by organisations that are responsible for the data, now when those estimates are miscalculated it has a tendency to affect the currency. I wont go much more into the benefits of Forex Factory, I just suggest you check it out! Especially if you were previously unaware of how economic calendars are used by traders. US Search Mobile Web. Welcome to the Yahoo Search forum!

We’d love to hear your ideas on how to improve Yahoo Search . The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate. You are now required to sign-in using your Yahoo email account in order to provide us with feedback and to submit votes and comments to existing ideas. If you do not have a Yahoo ID or the password to your Yahoo ID, please sign-up for a new account. If you have a valid Yahoo ID and password, follow these steps if you would like to remove your posts, comments, votes, andor profile from the Yahoo product feedback forum. Forex Factory is the name of a popular forex trading online forum. The Forex Factory website is indeed a great resource for all categories of traders. Here you get to see traders and market players from the retail and occasionally from the institutional side of the market. The Forex Factory online forum also provides traders with several tools that are built to enable them profit from the market.

One of these tools is the forex calendar, also known as the economic news calendar or simply the economic calendar. The forex calendar is simply put, a schedule of news releases impacting the socio-economic and political sphere of several globally important economies. The news releases that can be found on the forex calendar include news about interest rate statements, inflation data, data on housing, employment and trade. These releases are displayed for various countries at various times and dates displayed on the forex calendar. As far as the forex calendar on Forex Factory goes, traders can get a good number of benefits from using this tool. Forex Factory’s Forex Calendar: Key Features. It is important for news traders in forex who want to use the forex calendar on Forex Factory to understand the features that are available for maximization of its use. The forex calendar on Forex Factory looks just like the snapshot shown above. On the left, there is the navigation tab showing the current month, as well as various links which can be used to display the forex calendar for the next day, the next week, month and even the previous day, week or month. There are various arrows on the left of the monthly calendar display on the ForexFactory. com calendar. You can use these arrows to make the selections for the dates you would like to see on the forex calendar. The section in the middle of the interface shows the news events that are released at specific times and dates. We also see the numbers for the news items on the interface as well as tabs which conceal the news details. The News Events Interface.

In the middle of the screen lies the listing of the news events. There are several important keys here. Moving from left to right, the forex calendar on forex factor shows the date on which the news will be released, as well as the time of release. Traders have the option of changing the time zone that will be displayed by clicking on the time tab located directly above the time column. This provides the trader with the option of changing the time listing from the default display of Eastern US time (which is 5 hours behind GMT or 4 hours behind GMT when the Daylight Savings Time setting is on between the months of March and October) to another time zone. The next item displayed is the currency of the country that will be affected by the news trade. This is usually a function of the country that the news is released from. For instance, if the news is to be released out of Australia, then AUD (Aussie Dollar) is the currency symbol that will be displayed. The next item as we keep moving to the right of the interface is the market impact colour codes.

This is a very important component of the forex calendar found on Forex Factory. It shows three colour codes to demonstrate the market impact the news event is likely to have on the market. Yellow stands for low impact. Low impact news have very low market impact and do not provide enough tradable volatility. Orange stands for medium impact, and red is for high impact. High impact news are what traders love to trade as they create a lot of market volatility. The title of the news release is shown next to the market impact buttons, as well as the news detail. Clicking the news detail tab located just to the right of the news title on the Forex Factory forex calendar gives some insight as to what the news is all about, why it is of importance to the market as well as a hint on how often that piece of news is traded in a calendar year. Closing out this section is the numbers.

Four sets of number columns are seen: the actual (shown after the news is released), the consensus (forecast) and the previous numbers are shown on a constant basis, with a revision to the previous figure (if any) making up the last numbers column. Reading the Numbers. The trader’s ability to read the numbers of high impact market news listed on the Forex Factory forex calendar is key to succeeding in a news trade. The trick is in being able to interpret the deviation; which is the difference between the actual number and the consensus. The larger the deviation of the actual number from the forecast, the larger will be the price movement of the currency. A deviation has to be tradable in order to create a market opportunity. To detect a tradable deviation, check the difference between the forecast and the previous figures. If the difference between the actual figure and the forecast surpasses the difference between the forecast and the previous numbers, then the deviation is tradable and there will be a market opportunity to trade the news release. Taking the example of the news releases out of Canada at 8.30am EST on September 23, 2016, we can see that the difference between the previous Core Retail Sales figure (0.6%) and the forecast (0.5%) as shown on the Forex Factory forex calendar is 0.1%. The actual figure came in at -0.1%. Not only is this a negative for the Canadian Dollar (CAD), but the deviation of the actual from the forecast number (- 0.6%) is much higher than the difference between the forecast and the previous number of 0.1%. Therefore, we would expect to see a strong movement to the downside for the CAD. This manifests on the USDCAD as a strong gain for the USD against the CAD as seen on this 1-minute chart taken from the FXCM platform. Conclusion. The forex calendar from Forex Factory is one of the best forex calendars to use for news trading in forex as it has all the features to enable traders understand what to trade.

Simply visit Forex Factory to study the forex calendar available on the site using this article as a guide. I spoke with two different traders this week about the Forex Factory Calendar which has prompted me to write an article on the topic. I didn’t realise that many Forex traders are not aware of Forex Factory or other similar sites that offer economic calendars. This is a little unsettling for me because I was very lucky to find out about Forex Factory very early on in my trading. Forex Factory is many things, but for me its main use is the economic calendar. They also offer trading forums and news plus it’s a really good community of traders over at the Forex Factory Forum. Economic calendars are very important for any trader who is trading the Forex market especially if they are using smaller time frames (smaller than daily). When you first start trading sometimes the market will move against you very rapidly and seemingly without reason, often this is due to news or financial data being released about one of the two currencies that you are trading. Every day there is key data being released by different organisations and traders use this information to profit from the markets and to gauge overall economic health of a country and its underlying currency. Forex Factory will show you each day what you may need to look out for and why, it’s a must check resource for any trader. Below is an image which I have copied from the Forex Factory site. I have highlighted what I consider to be the two most important things that I look at. The smaller circle with the red forex factory logo inside is the impact of the news on the market with the time of the news release on the left. Red items suggest that usually the news will affect the currency, lots of the data that comes out each day has little immediate effect on the market and Forex Factory use a colour scheme to highlight potentially big data items.

The second larger circle teaches you what to expect from the data release, often it will give you an example suggesting how traders react to the financial numbers being released. What happens in the currency markets is estimates are made by organisations that are responsible for the data, now when those estimates are miscalculated it has a tendency to affect the currency. I wont go much more into the benefits of Forex Factory, I just suggest you check it out! Especially if you were previously unaware of how economic calendars are used by traders. Forex Factory Calendar. Forex Factory Calendar review, all about Forex Factory Calendar app, Finding out what is Forex Factory Calendar . Forex Factory Calendar. The Forex Calendar item is innovative to the point that it truly changed the way monetary logbooks are made. Before Forex Factory , timetables didn’t have affect evaluations, customizable time zones, detail sees, channels, connections to occasion sources, constant information discharges, monetary diagrams – and the rundown goes on. In any case, it takes significantly more than an extraordinary interface to convey a quality monetary timetable – ForexFactory utilizes an exceptionally prepared group of money related business analysts who work every minute of every day to guarantee the schedule is precise and careful. The Calendar is so amazing for its unwavering quality and mindfulness that many contending timetables utilize Forex Factory as their primary source! Presently you realize what is Forex Factory schedule and how to utilize ForexFactory news pointer application by this ForexFactory review, So tip us please by offer this audit on interpersonal organizations please. How to Use the Forex Factory Calendar: The Definitive Guide. The Forex Factory Calendar is by far the most user-friendly and accurate calendar to keep track of Forex-related news events. By the end of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial to your trading . But before we get into the details, I want to dispel a common misconception. Many technical traders make the mistake of thinking that, because they take a technical approach to the market, they don’t have to pay attention to news events.

Free PDF Guide: Want to learn how to use the Forex Factory news calendar in 5 simple steps? Click here to download the exclusive PDF guide. While it isn’t necessary to study the news, it is advantageous to know when news is expected. This is especially true for heavy-hitting news that can adversely affect the market. Not only can this type of news affect an open position, it can cause slippage and gaps that can wreak havoc for pending orders. Here’s how you can use a Forex news calendar to start making more informed trading decisions. Step 1: Getting Started. The very first thing you want to do is navigate to the Forex Factory calendar. Once there, you should be presented with a screen similar to the one below. Don’t be intimidated by all of the activity on this page. It will all make sense by the end of the tutorial. Next we will begin configuring the calendar so that you can get the most out of it. Step 2: Configuring Your Time Zone. Now that you’re on the calendar tab, you will want to set your time zone.

To do this, simply click the time in the upper right hand corner. After clicking the time stamp, you will be taken to a page where you can set your time zone. This will synchronize the time for each news event with your local time. Note: Setting the correct time zone is extremely important. If not set, it will be difficult to determine the correct time for each news event. At this point you also have the option to turn Daylight Savings Time (DST) on or off. Lastly you can toggle the time format to show either ampm or 24 hour “military time”. Once you are happy with the settings, click “Save Settings” so that you won’t be required to do this each time. As long as your browser’s cache is not cleared, your settings will remain the same each time you revisit this page. After saving your settings, you should now see the correct time displayed in the upper right hand corner of the screen. If not, repeat step 2 to make sure your settings were saved properly. Step 3: Setting the Event Filter. At this point you should have the Forex Factory calendar in front of you with each news event synchronized with your local time. Next we are going to set the event filter to determine the type of news and currencies to display.

This is convenient if you only want to display certain types of news events or are only interested in specific currency pairs. To set the filter, click the “Filter” icon in the upper right hand corner while on the calendar tab. After clicking “Filter”, you will get a screen like the one below. This screen gives you the ability to filter events by expected impact, event type as well as currency. Pro Tip: Hover your mouse over the colored boxes under “Expected Impact” to get an explanation of each one. In short, red equals high-impact, orange is medium-impact and yellow represents low-impact news. I personally like to focus on the medium and high-impact news events. This gives me a complete picture of what to expect over the coming days without cluttering the calendar with news that will have little impact on the markets. Once you have everything set the way you want, click “Apply Filter” to begin showing only the events and currencies you selected. You can change this any time by repeating this step. Step 4: Selecting the Desired Time Frame. You should now have your time zone set and your filter configured the way you want. Now it’s time to select the desired time frame. This is the span of time that will be shown on the calendar. The navigation pane you see below will allow you to set any time frame you desire. From this window, you can choose a single day, a week or even the entire month.

Also note that you can quickly select predetermined time frames in the bottom half of the navigation pane. Step 5: Digging Deeper. In addition to seeing the “surface content” such as the event name, expected impact and scheduled time, you can also expand each event to see additional information. Be sure to use this feature with caution. It can be far too easy to get caught up in the nuances of each event. As price action traders we need to be more concerned about what’s happening on the chart and less concerned about the fundamental significance of news. The image below illustrates how you can expand the details of a given news event. Once the icon above is clicked, you will immediately see additional details of the event. From the screen above, you can see additional details such as the source, frequency and history of the event to name a few. To close this window, simply click the “X” shown in the image above. Before we move on, I want to reiterate how important it is to use these additional details sparingly, if at all. The real advantage to using a calendar as a technical trader lies in the scheduled time and expected impact of the news. Anything more than that and using a news calendar can become more of a distraction than an asset. That concludes the process of setting up the Forex Factory news calendar. Now let’s get into the second half of this tutorial and discuss how to use what you’ve just learned to your advantage when trading Forex price action.

Choosing the Important Headlines. Knowing how to set up the Forex Factory calendar is one thing, knowing how to use it properly is quite another. The first thing to understand is that you only want to focus on the market-moving events. This means setting the filter to include only the medium and high-impact news events. By doing this, you don’t have to sift through the low-impact news to find the events that are likely to cause increased volatility. Pro Tip: Below is a list of some of the major news events you should keep an eye on as you trade the Forex market. Federal Open Market Committee (FOMC) Nonfarm Payrolls (NFP) Unemployment rates Final Gross Domestic Product (GDP) Monetary policy announcements Any rate decision announcement from central banks. Before moving on, let’s recap what you have learned thus far. By now you should have the time zone, filter and time frame set for your calendar. You should know how to view additional details of a news event as well as which events are most likely to cause an increase in volatility. Next we will get into how to strategically position your trades around major news events so as to minimize your risk. Trading Around the News. The reason we want to use the Forex Factory calendar is to know when market-moving news is expected and thereby avoid or prepare for periods of high volatility. As such, I want to run through a few basic rules when it comes to trading around the news. All of the scenarios below assume that the news event in question would hypothetically impact your trade.

For example, trading USDJPY with Nonfarm Payrolls (NFPs) on tap. No open positions ahead of news. This is obviously the safest place to be with major news around the corner. You have nothing at risk and you get to objectively analyze the price action that forms as a result of the news. But what if the news isn’t just around the corner? How much time is needed between putting on a new position and a scheduled news event that could adversely affect that position? This is a hard question to answer as it depends on a few factors. The trader – Trading style and risk tolerance come to mind. Every trader is different and therefore has different requirements when it comes to how risk averse they are. The time frame – On average, a trade on the 4 hour chart will require less time between the entry and the pending news than a trade on the daily time frame. This is because, hypothetically speaking, a trade on the 4 hour chart has a greater chance of running to profit before the news event occurs. Distance to take profit – Aside from the time frame, the distance from the entry to the take profit also plays a role. A trade with a 50 pip profit target will require less time than a trade with a 300 pip target, hypothetically speaking of course.

As a general rule, I like to see at least a 24 hour window in which there is no scheduled (major) news before putting on a trade. By “major” I’m referring to one of the events listed above. This of course can change depending on the last two factors listed above. Open position – small profit. This scenario involves an open position that is in profit, but stands a good chance of turning negative if the news event in question adversely affects the position. We’ve all been there – that point of indecision before a major news event is about to hit. Should you close the trade and book a small profit to be safe? But then what if the market moves in favor of your position? If you close it now you risk missing out on potential profits. In my experience, most traders fear a missed opportunity more than they fear losing capital. This couldn’t be more wrong. Your number one job as a trader is capital preservation . Making money always comes second.

The path I choose 95% of the time in this situation is to take my small profit and get out. I can always get back in later if the market presents a favorable opportunity. Just remember – when in doubt, get out. Open position – large profit. The last scenario we’re going to discuss is the second safest place to be behind having no open position, of course. When a high impact news event is around the corner and you have a position that is well into profit, you have more options. It’s much easier to ride out a major news event if you know your position is 200 pips in the money. One thing that can influence your decision here is how far away your trade is from its profit target. Let’s assume this position was originally aiming for a 300 pip profit target and is now just 40 pips from the target. In this case I would be more likely to close the trade before the news event to book profits. To risk giving back 260 pips for an additional 40 pips isn’t the greatest of propositions. Your other options are to take a partial profit and leave the remaining position on or keep the entire position open throughout the event. I’m not a huge fan of taking partial profits so I usually opt to go all or nothing. But one thing is certain, you have a lot more options with a position that has run into considerable profit. Learning to "Read" the News. Now it’s time to bring it all together. By now you should know how to configure your Forex Factory calendar as well as how to manage news events.

Let’s finish up this tutorial by discussing how price action plays a role in all of this. I have written before about how to use the news to gauge market sentiment. However this time I want to talk about actually reading the news through the price action strategies that form on your chart. What is a pin bar, really? How about an inside bar? You probably know what they look like, but have you ever thought about why they form? These two strategies have a common thread – they are both the byproduct of news. Whether it be something that was just announced or a more gradual flow of news that causes market sentiment to either fluctuate or remain constant. In fact all Forex trading strategies are a byproduct of news in one way or another. However the pin bar and inside bar really embody the essence of how news can influence a market. Pin Bar. Some of the best pin bars form on the back of a major news event. In fact one of my favorite setups is the NFP pin bar. This is because NFPs are released at 8:30 am EST and the 4 hour candle on my New York close chart closes at 9am EST, giving the market thirty minutes to react. The timing of a news event like this can often cause the price for US Dollar pairs to rise or fall quickly, thus forming a 4 hour pin bar. Of course it isn’t always the case, but when an NFP pin bar forms at a key level, it’s often worth taking. Inside Bar. The inside bar can be thought of as the opposite to the pin bar. While the pin bar represents a volatile push in either direction, the inside bar represents consolidation after a large move. So whereas the pin bar forms as news is released, the inside bar often forms the day after a news release.

This is why the inside bar setup is often referred to as a type of breakout strategy. Before we end this section, I would like to point out that the news which causes these types of moves isn’t always immediately apparent. The markets can move because of an unscheduled event or perhaps an event that has already passed and the market is just now realizing the impact. Regardless of how or when the news occurs, the two strategies above give you a quick and easy way to read the news via your charts. We have covered a lot of material in this tutorial. Everything from how to configure the Forex Factory calendar to how to use it when trading price action. As such I would like to summarize some of the more important points to keep in mind when using the news calendar. First and foremost, the news calendar should never be used as a tool to help you enter the market. In other words, attempting to trade a news event for the volatility it causes is a surefire way to blow up a trading account. The calendar can, however, be a great way to keep track of upcoming events. Knowing when these events are scheduled can help you make decisions about the timing of your entries. It’s also helpful if you have an open position as it gives you the opportunity to book profits before a potential increase in volatility. As a price action trader, you have a distinct advantage over other market participants using something other than price action. You have the ability to read the news through your charts using strategies such as the pin bar and inside bar. Just remember to stick to the daily and 4 hour time frames with the exception of the inside bar, which should only be traded on the daily time frame.

Are you ready to start using the Forex Factory news calendar? If so, you definitely want to download the free PDF guide that I just created. It breaks down how to use the calendar in 5 simple steps and explains which news events produce the most volatility. Click the link below and enter your email to get instant access to the PDF guide. Forex Factory News indicator MT4. Forex Factory News Indicator MT4. The forex factory news indicator MT4 is by Tim Morris. The indicator pulls news data from Forex Factory and plots it on your MT4 charts. The indicator works on the latest MT4 build 1090. Download the indicator. How to use it? You need to enable. dlls to use the indicator. Press ctrl+O to open up the options screen in your metatrader terminal Click on the expert advisors tab Tick the boxes exactly like the screenshot below. 4. Done. Now drag your indicator on to the chart to activate it. The indicator will show the upcoming news. Red means high impact news Orange means medium impact news Yellow means news is low impact. Here’s a screenshot of how the indicator looks like: That’s it. I hope the indicator helps you along your way to profitability!

30 thoughts on “ Forex Factory News indicator MT4 ” I downloaded the Forex Factory News indicator and started it. It shows the Initializing… text and doesn’t show any news but I can see the news on the page of Forex Factory. The version of MT4 is 745 and I enabled the DLL import and External DLL import. What to do? I have encountered the problem a few times as well. What I did was just to restart the MT4 terminal and that fixed it. I suspect you may have too many indicators on your MT4 terminal, which is causing the indicator not to load. Wonderful blog! Do you have any helpful hints for aspiring writers? I’m hoping to start my own website soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m completely confused ..

Any recommendations? Thanks! Thanks for this news Indicator. Very much appreciated. Will somebody please tell me how I move the News Indicator from the top left corner to the top right Corner? US Search Mobile Web. Welcome to the Yahoo Search forum! We’d love to hear your ideas on how to improve Yahoo Search . The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate. You are now required to sign-in using your Yahoo email account in order to provide us with feedback and to submit votes and comments to existing ideas. If you do not have a Yahoo ID or the password to your Yahoo ID, please sign-up for a new account. If you have a valid Yahoo ID and password, follow these steps if you would like to remove your posts, comments, votes, andor profile from the Yahoo product feedback forum.



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