Lesson 5 - Proper Use of Forex News Calendars

Lesson 5 Proper Use of the Forex News Calendars When reviewing the trading plans at Forexearlywarning.com please be sure to check any news items which could drive price movement on both sides of each pair ahead of the main trading session, and in some cases, ahead of the Asian session If you set a price alarm and have a trading plan to buy the USD/JPY, for example, check USD and JPY news items, at a minimum, and write down the times Here is a link to the news calendar we like to use Forexfactory Here is a link to the backup new calendar Daily FX These two calendars are color coded news calendars which show the volatile news items or high impact items coded in red and you can check the weekly or daily view. We reference these volatile news items in the forex news calendars in the Forexearlywarning.com “Second Opinion” forex trading plans. News items that could cause movement and volatility are coded in red. Click on “filter’ in the upper right of the calendar to isolate the news items coded in red.

The calendar can be adjusted to match your time zone under “time and date options”.

These news release times on the calendars combined with price alarms will help you to spend a lot less time in front of the computer but you can still monitor the movement cycles of the spot forex. Sometimes in the trade planning process its difficult to tell exactly where to set a price alarm so one possibility is to monitor a potential entries that are keyed off of the time of a volatile news item time. At Forexearlywarning.com we do NOT trade the news. Trading the news is risky and is gambling. We perform rigorous analysis of 22 currency pairs across multiple timeframes and set our plans, the news check is a final check to see if news items could potentially drive a pair in the direction of the trend, all trade entries are verified with parallel and inverse pair groupings using The Forex Heatmap ™ News setups – Sometime a currency pair has a solid long term trend but several days ahead of some news starts to move against the trend. The pair “sets up” for a reversal back into the major trend and is waiting for the news and trend verification. For example lets say the GBP/JPY and GBP/USD are in an uptrend but they start to sell off on Monday and Tuesday and they stall Wednesday, Thursday morning here comes GBP interest rates or GDP. After the news the GBP strengthens and this is a classic “market setup” that

happens all of the time. The market was waiting for the news to confirm the trend. Panning Your Trading Week – On the Forexfactory calendar click on the green “calendar” tab and it defaults to the weekly view check on Sunday or Sunday night and see what news items are coming for the week. This takes 10 minutes and is great for persons with full time jobs. News items not on the calendar - Sometimes the forex market starts to move unexpectedly for an unknown reason. This could be due to unexpected news of some kind. If the market is moving and there is no scheduled news look for breaking news on these three sites. http://www.fxstreet.com/ http://www.marketwatch.com/story/newsviewer http://www.ft.com/markets/currencies END OF LESSON 5

Lesson 5 - Proper Use of Forex News Calendars

by Forexearlywarning.com on Oct 03, 2010

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Lesson 5 - Proper Use of Forex News Calendars — Document Transcript