Still confused how to read forex factory calendar?

Most forex traders must know about forex factory, a site that provides forex calendar or calendar fundamental news. But the problem is how to read forex factory or rather how to read the data presented on forex factory calendar so that we can predict market direction.

Actually analyze the direction of the market using fundamental news for today is more difficult than reading direction the market is technically .Alasannya was the first, before the official news release market has already moved to follow the issue. Second, when the news was released we need to interpret it quickly because the market has been in a volatile state which is ready to move to and fro. Third, because the fundamental news is only trigger market direction only, it is difficult to determine the limit price limit for determining the profit targets and stop losses .Therefore secar a fundamental trading is mostly done by a long term trader or a long-term trader with greater capital to be muffle-contortion contortion market.But even so we need to also know how to read a forex factory for additional knowledge might someday be needed in trading or as a complementary trading strategies. Because after minimal functions of a forex calendar is as signs signs to determine when to enter the market or when to be silent and menungguu.Below is an example of how to read forex factory calendar or more often notarized how to read forex factory:The most simple step to read forex factory calendar is to answer the following question1. What currency will release the news today?In the forex factory calendar you can see the currency pair that the news will be released today. Not all pairs have news that will be released. So, pay attention to the column currency currency what will be published news. That way you can decide whether this day would mentradingkan containing curency pair is to utilize volatilenya or choose to avoid trading on the pair containing currency and choose another pair that technical analysis you can walk normally.2. How impactnya?In the next column the words impact. Impact in the Indonesian word meaning is Impact. In the forex factory calendar illustrated with a colored emblem.There are four colors used:A. White, shows that there is no impact caused. Usually when a bank holiday calendar.B. Yellow, show that low impact atu arguably not very influential.C. Orange, showed that the impact is classified as medium. Can usually move the market a range of 25-60 pips.D. Red, this indicates that the impact is very large so that it can mengerkan market more than 60 pips could even reach 160 pips.Of the four types of impact are most frequently watched and utilized is the red impactnya Because this is usually that red can penetrate boundaries technically market value.3. At what time the news is released?On the right column there is a column clock date when the fundamental news was released. The clock by default is the time the American Hence you can change by clicking the writing clock and set the time zone now it becomes time jakarta or become time according to market watch on your metatrader.After hours in the same factory with the forex market hours on watch your MetaTrader or equal to clock in your home. You can view the calendar at what time the news was released and mark it to be used as guidelines.4. What is the value of the previous release?In the right hand column kalener forex factory you will find columns Previous. This is the last value that was released from a kind of news, or in other words the value of the last month.Previous value is used as a benchmark and benchmark or as a comparison to the value of the latest to be published officially.5. What is the value estimates?Value forecast or estimate is the value of the data obtained from some reliable sources eg economists or bank before its official release value.Value forecast is also described an expectation, because by looking at the value forecastnya that some traders are already predicting the next direction and entered the market.6. What is the actual number?The actual figure is the number of the release of the official agencies .Inilah However awaited numbers only condition figure far more frequently than-expected market move.Then how to read the whole forex factory?First let us distinguish between types of news first, this is only for convenience.If the value of the data on increasing the encouraging news, we refer to as a positive thing, for example, news of the workforce. The analogy is who is not happy when the amount of labor increases?Conversely, if the value of the news increased but bring sadness we refer to as negative. Examples unemployment news. Who would not be sad when the number of unemployed is increasing?Okay, and then we puny arumus reference like this:The positive thing => Increases ==> Economic conditions improved ==> The currency strengthenedThe positive thing => Declining ==> Economic conditions deteriorated ==> The currency weakenedNegativity => Increases ==> Economic conditions deteriorated ==> The currency strengthenedNegativity => Declining ==> Economic conditions improved ==> The currency weakenedFurthermore compare the value of Actual, Forecast and Previous to the formula:If the forecast positive thing> previous and much larger Actualnya => Continue to strengthenIf the forecast of positive things <previous and much larger Actualnya => Sudden GainsIf the forecast positive thing> previous and much smaller Actualnya => weakened abruptlyIf the forecast of positive things <previous, and much smaller Actualnya => Continue to weakenIf the forecast negative> previous and much larger Actualnya ==> Continue to weakenIf the forecast negative <previous and much larger Actualnya ==> sudden dipsIf the forecast negative> previous and much smaller Actualnya ==> Sudden GainsIf the forecast negative <previous and much smaller Actualnya ==> Continue to strengthenIf the forecast, previous and actual thin difference usually does not have much effect on market movements.As this is an example of how to read forex factory calendar:

At 08:30 the above news releases Non-farm Employment change, known as the Non-Farm Payroll large berimpact in USD currency.Nonfarm payrolls showed a total payment of all employees outside agriculture, or indicate the availability of jobs outside the farm country of Americans there. The larger the total of such payments shows the growing enterprise companies as well as the increasing number of employees who will spend money for consumption, so that it will turn the other industries that globally indicates the economy will run smoothly.From here we can see that the news is positive nonfarm payroll. The larger the value, the more showed nonfarm payrol strengthening US economy and the strengthening of the USD.In the forex factory calendar above, forecastnya greater than previous means many traders are predicting the USD will strengthen. When it turns actualnya true value is greater than the previous value, USD quickly rose against other currencies. This is an example of the strengthening of the USD against GBP:

The value of the USD strengthened so that the value of the GBP / USD down.Such is the basis for reading forex factory calendar .Walaupun look easy as usual mathematical logic, but once again, in fact predict the direction the market using it more difficult news. This is because of emotions or panic among traders who created before and when the news was released from one period to the next time it is different. Mathematical logic so although the market should move up, it could be market even fell down before touching your stoploss then ride he he ..So, if you want to be able to read forex factory and produce trading of the way, please continue to learn and discover knowledge .. For those of you who want to keep using technical analysis to determine market direction persevere, how to read forex factory made only limited additional knowledge alone ,We do not need to worry about not being able to read forex factory calendar, our job is not the one to be able to read forex factory but to generate profit. Always success….Source: siembah.com