Forex calendars are essentially public calendars in which investors and traders can place their schedules for trading and place bets on various international and national economic markets. Thanks to the dedicated daily effort of these forex traders, they are well able to earn predictions about the fluctuation of any currency pair. This has made these calendars quite popular among traders who use them to plan their trading strategies. You can find a large number of free calendars on various online sites. The best part is that you can customize your calendar so that it reflects your style and preference.
While designing your free calendar, you should always keep one thing in mind. You should never focus only on the indicators that display price movement. Price action alone is not sufficient when it comes to identifying economic weakness or strength. To identify potential economic weakness or strength, you need to consider other indicators as well. Among the most important factors that you should consider are indicators like gross domestic product, interest rates and price inflation.
Economic indicators have a significant impact on the direction of any currency pair. Therefore, the design of your forex calendar should include economic indicators with the highest impact on the market. Among the most commonly used economic indicators are gross domestic product (GDP), consumer price index (CPI), employment rate, inflation and gross currency exchange rate.
The interest rate is considered a key indicator in many Forex calendars. As the interest rate moves, so does the monetary supply and demand. Economic forecasts based on the forecasts of these two forces have a considerable impact on market movements. For example, if the forecasts indicate that the economy might move towards a low growth path, the interest rate will be reduced to provide support to the economy.
Other economic indicators are price changes in gross domestic product and interest rates. Although these two indicators are considered as non-economic factors, they have significant effects on the Forex market. Accordingly, traders should make use of the forex calendar to identify possible economic developments before they happen on the currency markets. This allows traders to take corrective action in the Forex market before the markets become affected by non-economic events.
Traders rely on the technical analysis to determine the Forex market direction. Technical analysis is an essential part of any trader's activity. This type of analysis determines the trend of the markets through the use of charts and other technical indicators. Traders depend on signals provided by the technical analysis to decide whether to open or close the trade. The indicators are primarily used to facilitate the decision making process of the trader.
Indicators play a very important role in the decision making process of traders. Without the assistance of the forum calendar and the technical analysis, it would be difficult for traders to know about the upcoming announcements by central banks and financial institutions that have a direct or indirect effect on the market movements. This makes it important for any trader to keep abreast of all market movements and take corrective action before it happens in the Forex market.
The free calendar and the technical analysis play a vital role in the smooth functioning of the foreign exchange market. It gives the necessary information required by the traders to take appropriate actions in the face of changing economic conditions. Currency prices constantly fluctuate and move in response to the prevailing economic conditions. A well informed forex trader can predict the direction of the market movement and place his orders in the right times. Thus the introduction of this calendar has made the work easier for any currency trader.