Forex factory calender 3

Forex Factory ❤️ what is it and how it works?

The Forex Factory site calendar is by far the most user-friendly and suitable calendar in Forex for following and trading Forex news . By following this tutorial, you will learn how to use this calendar and read it correctly for use in transactions. But before we get into the details, let’s correct a misconception. That misconception is that most technical traders think that because they use technical analysis they don’t need to follow the news.

Although it is not necessary to read the news, it is very useful to know when the news is expected. This is especially important in the case of “very important news” that can affect the direction of the market. This news does not only affect open positions, but it may cause price slippage and chat and affect conditional orders as well. In the following article, we teach how to use the forex news calendar to make more informed trading decisions.

First step: start using Forex Factory site calendar.

The first thing you should do is to open the Forex Factory website with the address ” “. After entering this site, you will see the following image:

Don’t worry about the page being crowded. At the end of this tutorial, you will understand the meaning of each of the data you see. In the next step, we will adjust the calendar and the information on this page will be more concise.

Step 2: Set the time zone.

Now you are on the Forex Factory calendar page, you may want to set your desired time zone. To do this, simply click on the time tab in the upper right corner of the page.

After clicking on the time, you will be transferred to a new page. This page can coordinate the time of any news with the time of your living area.

Note : Setting the correct time zone is very important. Otherwise, it will be difficult to determine the correct time of each news according to the time of your country.

In the picture below, we have chosen Tehran. You can also choose a 24-hour or morning/afternoon format for the clock.

After setting the clock, click on Save Settings option. After that, the settings will be saved and you won’t need to reset them until you clear your browser cache. After saving the settings, you will see the correct time in the upper corner of the screen according to the time of the country you have selected. If not, repeat step 2 and make sure you select the correct settings.

The third step: filtering the news.

By now, you should see the Forex Factory calendar with the news that matches your country’s time. Then you have to filter the news and currency pairs you want. If you want only certain news to be displayed for you or to see only news related to certain currency pairs, you should use the news filter option. To set a filter, click on the Filter icon on the top right side of the screen.

After clicking on “Filter”, you will be taken to a page like the one below. This page allows you to filter the news based on the expected impact and the currency pair you are interested in.

By moving the mouse pointer over each of the colors, you will see their effect. Red means high impact, orange means medium impact and yellow means low impact. It is generally more useful to focus on high or medium impact news in Forex Factory. Because this issue gives you a general view of the events of the next few days without the need to fill the calendar with low-impact news. After choosing the settings you want, click on the “Apply Filter” option to display exactly the news and currency pairs you want. You can change these settings whenever you want.

Fourth step: Select the desired.

In the fourth step, you have to choose the time frame you want. This interval will be displayed on your calendar as a range as shown below. With the mouse pointer, you click on any interval or tab, and the news related to that day will be displayed.

From this window, you can consider a day, week or even month as your time frame. Tip: It is usually better to choose the whole week when trading higher time frames. This will help you keep in mind the news of the next few days.

Step 5: Deeper understanding.

In addition to viewing the external content such as the name of the news in Forex Factory, the expected effects and the planned time, you can click on the news to see more details. Be careful when using this feature. Because it is easy to get caught up in the details of the news. In particular, price action traders should focus more on the chart and worry less about the details of the news. The figure below shows how to get the details of each news.

When you click on the icon shown in the picture above, you will immediately see more details of the relevant news.

In the opened window, you can see more details such as sources, history, previous effects of the news, frequency of news releases during the year and related Forex Factory news. To close this window, just click on the “x” shown in the image above. We emphasize that you either do not use these extra details or use them very little. The most important advantage of using a news calendar for technical traders is to be aware of important news and their effects. Anything beyond this can cause the trader to lose focus instead of helping.

Now that you are familiar with the settings of the Forex Factory site, let us describe in the next part of the tutorial how to use these learnings in Forex trading with price action.

Selection of important topics on Forex Factory site.

Knowing how to set up the Forex Factory site is one thing and being able to use it properly is another. The first thing to consider is that you should only pay attention to news that moves the market. This means to filter only medium and high impact news. By doing this, you will no longer need to sift through weak news to find the one that will swing the market. If you trade in the forex market, you should always consider the following “important news”:

Federal Open Market Committee (FOMC) Non-Farm Employment (NFP) Unemployment rates gross domestic product (GDP) Monetary policy news Any other news or announcement from the central bank.

Next, we will explain how to manage your trades with the news in mind.

Trade near the important news of Forex Factory.

For this reason, we use the Forex Factory site to know the time of news releases that may cause high volatility in the market so that we do not trade at that time or prepare for high volatility. For this reason, we introduce some general rules that you should consider when publishing news. All the following scenarios are based on the assumption that the relevant news will affect your desired trading position. For example, trading the dollar-yen currency pair (USDJPY) when the news about non-agricultural employment is released is one of these types of transactions.

1- Failure to keep the trading position open when the news is released.

Having no trades when breaking news is the safest possible state. In this case, there is no risk for you and you can analyze the effect of the news on the price movement in real mode. But what if the effect of the news before its publication affects your trading position? How long should your trading position be set before the news release so that it is not affected by the news? The answer to this question is difficult and depends on the following factors:

Trader: Every trader has his own risk. The level of risk aversion of people is also different. Time frame: On average, a trade in a 4-hour time frame requires less time to determine the task before the news is published than a trade in a daily chart. Because trading on the 4-hour time frame has a higher chance of making a profit before the news is released. Distance to take profit: In addition to the time frame, the distance between the entry point and the target is also decisive. A trade with a target of 50 pips needs less time to reach the target than a trade with a target of 300 pips.

As a general rule, it is better not to enter into a trade until 24 hours before an important news. Important news means one of the “important news” mentioned above. Of course, compliance with this rule depends on the trader and the time frame.

2- open trade – small profit.

This scenario includes an open trade that is in profit, but if an important news is published on the Forex Factory site and changes the direction of the market, that position will also be affected. We are all in such a situation. Should we close the deal with low profit in this situation? What if the market moves in the direction of your trade after closing the position? If you close the trade now, you will lose a potential profit. Generally, traders fear loss of profit more than loss of capital. This is not entirely wrong. Your main task as a trader is to preserve capital first and then earn profit. In such cases, it is better to be satisfied with the same small profit and close the transaction in profit. If the market moves in the direction we want, we can enter the trade again.

Always remember. When in doubt, get out.

3- open trade – big profit.

The last scenario is to have an open trade with a large profit. In this case, if there is important news coming, you will have more choices than in the second case. Because in this case, even if the market fluctuates, you may still remain in profit. In this case, the price distance from the selected target can affect your decision. Suppose the target of this position is 300 pips and now it is only 40 pips away from the target. In this case, it is more logical to close the position before publishing the news. Because we have preferred 260 pips of actual profit to 40 pips of potential profit.

Some traders cash part of their profit in this situation and keep the rest open, and some keep the entire position open. We do not recommend this option. But what is certain is that when your position is in a significant profit, you have more options in front of you when publishing news on the Forex Factory site.

Now it’s time to put everything you’ve learned together. So far, you have learned the settings of Forex Factory and how to manage news. Let’s finish this tutorial by discussing the role of price action in this story . In the rest of the article, we will explain about reading the news when trading with price action strategies. Have you ever thought about the formation of a pin bar candle or an inside bar candle ?

These two strategies have a common chapter; Both are news products. In fact, all forex trading strategies are news products in some way.

pin bar.

Some of the best pin bars (continuation or reversal patterns) are formed after the news. One of the best reversal patterns can be formed on NFP news. That’s because NFP news comes out at 8.30am (EST). The 4-hour candlestick on the chart adjusted to New York closes at 9:00 AM (EST). In this case, the market has 30 minutes to react to the news.

The timing of news like this often leads to a rapid increase or decrease in the price of dollar pairs; Therefore, a pinbar candle is formed for 4 hours. When an NFP pinbar forms at an important level, it is worth following.

Inside Bar.

Maybe the insidebar can be considered as a pin bar. While the pin bar shows fluctuating pressure in both directions, the inside bar shows stabilization after a big move. Therefore, while the pin bar is formed immediately after the news published on the Forex Factory website, the inside bar is usually formed one day after the news. For this reason, the inside bar pattern is considered as a breakout trading strategy of a trend.

Note : trading based on pin bar can be done in 4-hour or daily time frame; But it is better to trade based on the inside bar only on the daily chart.

It is important to note that the news that causes such movements are not always immediately obvious to everyone. The market may move sharply due to news that was not timed in advance, or news that has already had its effect and we are now realizing it. Apart from when and how the news is published, the two strategies Pin Bar and Inside Bar allow you to read the news from the chart.

final word.

In this tutorial, you learned how to work with Forex Factory site and how to trade with news. In the end, it is necessary to pay attention to several points.

Never look at the news as a signal to enter the market. Use the calendar to follow what’s happening in the market. A price action trader should be able to read a lot of news from the chart. In this way, pin bar and inside bar are suitable tools.

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