Have you ever heard of the Forex factory Tools? It is an advanced trading tool that allows traders to track new events related to the forex market. However, as many newcomers are still unaware of How to use the forex factory calendar, we decided to put our experience to work and hence, came up with this guide.
In this article, we will help traders understand – How to use the ff calendar and how to read it for profitable trading decisions.
But before deep diving into the details, let’s dispel a common misconception among traders regarding the forex factory calendar.
As many technical traders make a common mistake of ignoring upcoming events, thinking their technical approach is enough for a sound investment decision.
While it’s really not exigent to keep track of news events, being updated on the current market events may have a positive impact on your trades. And that’s really true for big-hitter news that can have an adverse effect on the market.
It may affect your open trade position and cause slippage & gaps that are riskier for pending orders. So, if you’re wondering – how to read the ff calendar, below, we have listed the easiest steps for using a Forex news calendar to help you make more sound trading decisions. But before we proceed, here’s a short introduction to this important forex trading tool.
What Is Forex Factory?
Forex Factory is a sophisticated platform designed especially for professional traders. The platform offers users curated information on the forex market in real-time.
The information offered here is extremely reliable because it can include anything from trading strategies to economic data to in-depth analysis reports from users to journals, etc.
Furthermore, traders can use this platform to block out all the false information and unimportant things, like well-known scams, poor trading methods, etc., that can affect specific traders.
This platform can help you stay ahead of the competition by updating you with pertinent information, assisting you in choosing the best Forex trader, and offering many other beneficial features.
What Is Forex Factory Calendar?
Forex Factory Calendar refers to an economic calendar that helps traders track crucial economic news and global events related to the forex market.
The Forex factory website, available in the economic calendar section of a brokerage platform, enables traders to look for information about any past and upcoming economic event.
You can filter the results on the Forex factory website, which is free to all users. However, in order to become a successful forex trader, you must necessarily learn & understand to work with this advanced forex trading tool.
How to Configure Forex Factory Calendar?
Understanding and using the Forex factory trading tool is not as sophisticated as many traders think. Instead, it is a straightforward process that helps traders make informed financial decisions.
Here are some simple steps on how to use Forex Factory Calendar:
Getting Started With the Forex Factory Calendar
The very first step to using the forex factory calendar is to visit its official website. You see a screen just like the one below.
Now, you might be thinking about all these folders, don’t worry; you will know about them until the end of this guide. In the next step, we will configure the time zone to get a clear vision of how to use ff calendar.
Configuring The Time Zones
On the homepage of the forex factory website, you can see the time zone, which has to be configured. For that, click on the time icons available in the upper right-hand corner of the website.
Following that, you will be redirected to a screen where you can configure your time zone. It will synchronize news events time with your local time.
At the same time, you can also turn Daylight Savings Time (DST) on or off. Lastly, set the time format to either am/pm or 24-hour “military time.” Now, click on the “Save Settings” option.
After saving the settings, you will now see the correct time. If it doesn’t work, repeat the step to ensure your settings are correctly saved.
Set the Event Filter
After setting the time zone, each news update is synchronized with your local time. The event filter will then be set up to specify the news categories and currencies to display.
This step is crucial for traders who want to show specific news events or are only interested in certain currency pairs.
To set up the filter, click the “Filter” button available in the upper right-hand corner. We advise traders to focus on medium to high-impact news events as they provide a complete idea of what to expect over the coming trading days.
As everything is set according to your choice, click “Apply Filter.” You will only see the events and currencies you selected.
Select the Desired Time Frame
After setting the time zone and filter, now it’s time to choose the desired time frame. It refers to the time period you want to be shown on the calendar.
You can select a single day, a week, or even the entire month from the calendar window. Also, keep in mind that the lower half of the navigation panel allows you to quickly select specified time frames.
Last Step: Digging Deeper
You can open each event to discover more details in addition to the “surface content,” such as the event name, scheduled impact, and scheduled time.
Use this feature carefully. It might be too simple to fall into the nuances of each news event. However, as price action traders, we must pay more attention to what is happening on the chart and less attention to the news’s significance on a fundamental level.
The news’s scheduled time and expected impact are where the ff calendar shines for technical traders. But, unfortunately, using a news calendar can become more of a distraction than a benefit if you do anything more than that.
How To Use Forex Factory Calendar Tool?
As you may have understood how to set up a forex factory tool, let’s discuss how to trade Forex price action using the forex factory calendar.
Selecting The Key Headlines
Understanding how to set up the Forex Factory calendar and how to use it properly are two different things. So, before using the FF calendar, your only focus should be on the market-moving events.
Using the filtering feature to show only the medium and high-impact news events will significantly help. Doing so means you don’t need to scroll down through the low-impact news to discover the events likely to cause volatility.
Here’s a list of some events you should keep an eye on as a Forex trader:
- Unemployment rates
- Final Gross Domestic Product (GDP)
- Federal Open Market Committee (FOMC)
- Monetary policy announcements
- Any rate decision announcement from central banks
- Nonfarm Payrolls (NFP)
Trading Around The News Event
The primary reason to use the Forex factory calendar is to know the expected market-moving news to avoid or prepare for upcoming high volatility periods.
However, there are some basic rules regarding trading around the news. The scenarios below assume the news event that would theoretically impact your trade.
No Open Positions Before The News Event
This is probably the safest strategy as you have nothing at risk. Additionally, you get a chance to analyze the price action after the news.
But the real question here arises: How much time is required between opening a new position and a scheduled news event that could have an adverse effect on the position? It depends on a few factors:
- Type of Trader
- Distance to Take Profit
- Time Frame
Open Position – Small Profit
This is a common scenario where a significant new event is expected to hit soon. It refers to an opening position that is in profit but is expected to go negative if the news question could have an adverse effect on the position.
Here many traders close the trade and take small profits. But what if the market moves in your position’s favor? Closing the position in this movement will result in missing out on potential profits.
Open Position – Large Profit
This is the last and probably the second safest scenario. You have more options when a major news event is approaching, and your position is already profitable.
The only factor that can affect your decision is the distance of your trade from its profit target. Suppose your profit target is 300 pis, but your current position is 40 pips. In this case, closing the trade before the news event can be a great decision.
How Does Price Action Play An Important Role In Forex Factory Calendar?
Now that you understand how to configure the Forex factory calendar? And How to use Forex factory calendar? Let’s discuss the impact of price action on forex factory tools.
In this section, we will discuss reading the news events through price action strategies: Pin Bar and Inside Bar. Here the main questions are What Is Pin Bar? And What Is Inside Bar?
These two strategies have a common characteristic in that they are both a result of the news. Whether it be a recent announcement or a more slow news flow, market sentiment is affected and can change or stay the same. The pin bar and inside bar include how news can influence a market.
Some of the best pin bars develop on the heels of a significant news event. For example, the NFP pin bar is actually one of the best setups. This is because the market has thirty minutes to react after the NFPs are released.
A 4-hour pin bar will frequently appear when a news event causes the price of US Dollar pairs to increase or fall sharply.
The inside bar can be understood as the opposite of the Pin bar. It shows the consolidation after the bigger market moves.
Inside bar often forms after the day the news is released. This is the primary reason why an Inside bar is counted among the breakout strategies.
As we conclude this guide on how to use the Forex Factory tools, we would like to summarize some important points from the article.
Firstly, a trader should not see the news calendar as a medium for entering the forex market. As this calendar helps you track upcoming news events, you can make a more informed decision.
Additionally, it also helps you in booking profits for your open position before a potential increase in volatility. So now that you have understood the Forex factory calendar, it’s time to put all your knowledge into action. Open a trading account with InvestFW and start making a profitable decision on your forex trading. Apart from forex, the broker also offers to trade forex, commodities, cryptocurrencies, and Indices.
What Does Forex Factory Do?
Forex Factory is an advanced trading tool for professional forex traders. It helps them in making an informed decision by providing insights into upcoming news events.
Is Forex Factory Legal In India?
Yes, the forex factory trading tools are legal in India.
What Is The Best Forex News Calendar?
The Forex factory calendar is probably the best Forex news calendar right now.
What Is Forex Calendar?
The Forex news calendar is an important trading tool for the forex trader. It gives information regarding the upcoming news events, filtering them from low to high impact.
What Is Forex Factory?
Forex factory is a highly sophisticated platform. FF is created for professional traders who regularly trade in the forex market. forum that primarily focuses on curating forex-market news for traders. The Forex factory website, available in the economic calendar section of a brokerage platform, enables traders to look for information about any past and upcoming economic event.
How To Use Forex Factory?
To use the ff calendar, visit the website, select the “Time” button at the top of the page, and choose your time zone. The next thing you’ll need to do is to filter the news. Now, you are ready to go.
How To Trade Forex Factory News?
There are various ways traders can trade the forex factory news. The biggest reason behind traders’ interest in news trading is volatility. Simply put, forex traders are drawn to news releases for their ability to move forex markets. ‘News’ refers to economic data releases such as GDP and inflation, and forex traders tend to monitor such releases
What Is FF Calendar?
FF Calendar is shorthand for Forex factory Calendar tools.
What Are The Forex Factory Pros And Cons?
Among the main pros, the forex factory offers a wide range of tools for analyzing the markets and a unique community of traders sharing their strategies and providing trade ideas.
Additionally, the old-fashioned design and the absence of relevant information on some brokers are some of the cons of the platform.
How To Read Forex Factory Calendar?
The calendar shows you every piece of economic news coming out of the major countries. The information may be overloaded, so you may want to customize the look by filtering it to the low-medium impact news.
How To Understand Forex Factory News?
Forex factory news is simple to understand. As a trader, you should keep an eye on the current market situation and upcoming news events. Reading the above article will help you understand the forex factory news more precisely.
What Is Forex Factory Gold?
Forex factory Gold refers to the technical analysis of gold. Additionally, it also involves looking out for any upcoming news events that could affect the price of the gold.
How To Trade Nfp Forex Factory?
The Nonfarm Payrolls (NFP) is one of the significant market movers in the Forex markets. Here’s a simple process:
- Don’t do anything for the first 15 minutes after the NFP announcement.
- Wait for an inside candle
- Place a stop loss
- Exit 4 hours after your entry
How To Use Forex Factory Calendar?
Using a forex factory calendar is simple, visit the website, select the “Time” button at the top of the page, and choose your time zone. The next thing you’ll need to do is to filter the news. Now, you are good to go.
How To Read Forex Factory News?
Filtering it to low-medium impact news is the best way to read the forex factory news. The above article will help you understand the forex factory news more precisely.
Is It True That Most Strategies Posted On Forex Factory Are Scams?
No, the strategies posted on the forex factory are not scams. However, these strategies may or may not work depending on various factors. But that doesn’t mean these strategies are fake. A good understanding of the market is crucial to the success of any trading strategy.
What Is The Forex Factory Chart And How To Use It?
The Forex factory chart is a trading tool showing the historical price and volume data on one or more currency pairs. The chart is based on the median bid from several aggregated sources. You can use a mouse wheel to zoom in and out, and the chart can be moved by clicking and dragging.
Can A Beginner Use Forex Factory Calendar?
Yes, anyone can use this trading tool but having prior information about it is necessary for success.