How Can Forex Factory Be Useful?

A currency pair is the quotation of one currency against another. Currently, the unemployment rate of the EU is much higherthan in the UK. Hence, a simple analysis would indicate that the valuation of the Euro would be higher than the British Pound (EUR/GBP). Gold Price retreats to $1,725 heading into Wednesday’s European session. In doing so, the precious metal fades the early-day rebound from the yearly low while staying inside a weekly falling wedge bullish chart pattern. The Forums is one of the best offerings and the most notable products from Forex Factory as it is one of the busiest online Forums in the financial world today. Traders from every corner of the world can be found interacting on the forums, sharing ideas, teaching, learning, debating, and swapping real experience.

forex factory news

In essence, you want to wait for the market to make the first move and breakout of the highs before it makes a reversal, where you’ll enter short. So, by having a trading journal in a public domain, you’re making a commitment and have someone to be accountable to. If are serious about trading, then you must have a trading journal. It’s the only way to keep track Forex news of what you’re doing so you can improve on it. Or if you’re in an open position, you might want to reduce your risk exposure so you don’t get stopped out on the volatility spike. …most traders don’t take the full advantage of what Forex Factory has to offer. However, the pin bar and inside bar really embody the essence of how news can influence a market.

Open Position

This is convenient if you only want to display certain types of news events or are only interested in specific currency pairs. 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. Since the dollar is one side of many currency pairs, U.S. economic releases tend to have the most pronounced impact. Launched in 2004 the Forex Factory website is indeed a great resource for all categories of traders. The chart above is only an example of how a Forex fundamental analysis strategy might work. Presidential elections and the 1st round of the French elections were difficult to interpret, the Fed’s rate hike wasn’t. Therefore, the federal funds interest rate level is THE Forex news to watch.

This can be done on both a short-term basis or over several days. After a weak number in September, the euro was holding its breath ahead of the October number, which was to be released to the public in November. The next most important feature of the Forex Factory is definitely the Trade Explorer. It is a web-based dotbig testimonials interface that empowers traders to intelligently analyze their Forex trading performance and makes trading process easy. It facilitates potentially a seamless trade that can be analyzed in a rather intelligent way and offers the potential trades that might be taken in the nearest future or even now.

Forex Factory News App For Android

Forex Factory can help you filter down a list of brokers that you might consider trading with. They provide a list of brokers you can compare with side by side, so you can identify the ones that meet your needs. I’m sure you’ll agree with me that it’s difficult to find a broker you can trust. Just below the charts, you can see what the current market session is (whether it’s Sydney, Tokyo, London, or New York). You have a full-time job and it’s difficult to monitor your positions while at work. That’s why you need a valid trading setup with precise entries and exits so you can better manage your risk. What you’ll want is to at least be aware of such news as soon as it occurs to reduce your risk exposure.

  • The inside bar can be thought of as the opposite to the pin bar.
  • I’m not a huge fan of taking partial profits so I usually opt to go all or nothing.
  • Here’s how you can use a Forex news calendar to start making more informed trading decisions.
  • Each and every economic event is labeled with an impact from no-impact to low, medium and high impact as well as the previous, consensus and actual result.
  • 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.

A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached—even if the price reverses course later—the payout is made. The U.S. Dollar is the de facto reserve currency in the world and the nonfarm payrolls data is usually released on the first Friday of each month by the U.S.

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