When entering the forex market a new trader will discover he/she has a choice one what type of analysis to conduct. It is important the trader choose wisely between fundamental or technical analysis as this is the foundation of his/her trading system. However, the successful traders have been seen to use a combination of both types of trading analysis.
Unlike technical traders, fundamental traders use the analysis of forex news releases to determine what the market movements will be. These news releases indicate what global events are occurring and the trader should decipher whether or not this happening has an impact on his/her trades. The easiest way to keep up to date with relevant forex news is via forex calendars. However, it should be noted that this is not the only function of a forex calendar.
Forex calendars and forex news
The primary reason forex traders will utilise forex calendars is to identify which forex news releases are most significant to their currency pairings. This is of great assistance to the trader saving him/her much time and manual labour. It must be remembered that locating relevant information is much easier if one does not trade multiple or exotic pairings. The information on major currencies and their pairings is far more accessible.
As can be imagined, there are certain forex news items which affect the forex market conditions more than others. It is important that these items are placed on the calendar. While there are also some minor releases which have an effect on the market and will be relevant to your trading, they more than likely do not affect the markets movements to the same degree as major events. However, if you are a day trader it is essential that you are aware of both minor and major global happenings.
Looking at prior records
As is aforementioned, forex calendars can be used for purposes other than keeping track of and identifying relevant forex news releases. One may also use this tool as a means of recording prior information of the forex markets movements. This is vitally important for analytical purposes as one can determine different currency fluctuations and trends from historic records. By understanding previous data one is more likely to accurately predict a future trend. By predicting a future trend one is better able to prepare for it and become a more successful trader.
The places to find forex calendars
Forex calendars can be obtained via a plethora of means. The majority of forex trading platforms have implemented the forex calendar tool into their software. This means that the trader will have access to the calendars once they begin using the trading platform. However, it must be remembered that only particular trading platforms have incorporated this feature and it is not yet a standard feature for all platforms.
If the platform one is using does not offer the calendars external sources should be considered. Forex calendars can be purchased externally via a number of forex trading companies. It is important you find one which suits your personality and trading systems.