Tutorial Step 2: Filter Out the
Forex News Noise
The Forex Factory Calendar will likely
display much more information than what you actually want to know.
However, you can use the "Filter" feature in order to only
display the information that is important to you. Specifically, you
can choose to display:
- Impact Level: High, Medium,
- Type of News Events
- Specific Currencies
Click on the "Filter" button
on the top right:
Once you have the Filter menu open, all
you have to do is uncheck the boxes for currencies you don't want
news about, or for specific news events you don't want to display.
You can hover over the impact event
symbols in order to see what each symbol represents. The four types
of impact events are:
- High (red)
- Medium (orange)
- Low (yellow)
- Non-economic (gray)
After you have made your decisions,
select the "Apply Filter" button to update the Forex
Tutorial Step 3: Select Your
Unlike other forex calendars that only
allow you to view one day at a time, the Forex Factory Calendar
allows you to select how many days of news you want to appear on the
page. You can select a full week or even a full month to display in
order to plan your trading.
Use the calendar navigation panel on
the left to select your timeframe.
The options for selecting a timeframe
are easy to use: just click This Week, This Month, Next Week, Next
Month, etc. You can also use the little arrows on the calendar to
make your selections. Once you have your timeframe selected, you are
ready to move on.
Tutorial Step 4: Familiarize
Yourself With the News Display
In the Forex Factory Calendar, all the
news events display the date, time, currency, impact level, name of
the news event, and then the financial information associated with
the news event. However, there is a small folder immediately after
the name of the news event that allows you to display more details.
This details section is an extremely
useful tool, because it actually explains everything you would want
to know about the news event, and more. If you are interested in
learn more about fundamentals in forex, then this details section is extremely effective for understanding how fundamentals affect the
Also read about the Top 7 Forex Fundamentals.
Tutorial Step 5: Learn How to Use
the Forex Factory Calendar
How you end up using the Forex Factory
Calendar will depend on how you trade. Are you a technical trader or
Technical Forex Traders
Technical traders primarily trade off
the charts and do not actually pay attention to the news results. For
them, the whole purpose of using the Forex Factory Calendar is to
know when volatility might significantly increase.
For technical traders who primarily
daytrade forex, this provides an excellent opportunity to make large
gains very quickly due to the increased volatility.
technical traders who trade more long-term, they actually try to
avoid news events. Instead, they use this forex calendar to know when
they need to be out of the market. These long-term technical forex traders
wait (sometimes for a full day) until the news event is over in order
to see what direction the long-term trend might take. Then they
position themselves accordingly for a trade lasting a few days.
Both technical groups (forex daytraders
and long-term traders) have no need to use the details section
described in step 4. They only need to pay attention to the basic
information displayed on the Forex Factory Calendar, especially the timing of the news events.
Fundamental Forex Traders
In contrast, forex traders who trade
primarily based on fundamentals will be very interested in the
details of the news events. Rarely do fundamental forex traders
daytrade, because they generally understand that long-term success in
forex requires long-term trading. While there are long-term technical
traders, the fact that they are long-term is the primary factor
influencing their success as forex traders.
Granted, fundamental trading does not mean technicals are not used – generally these types of forex traders
make decisions on a mixture of fundamental and technical information.
If you are interested in learn why
long-term trading is more consistent and profitable than daytrading,
then read How to Win in Forex.
Beyond the Forex Factory Calendar
There are also a lot of other really useful tools available at the Forex Factory. If you select the Market tab at the top, then you can view charts of any currency pair you want.
On the chart, you can add indicators using the options at the top right (red box in the picture).
The red icons at the bottom of the chart are the news events with high expected impact.
You can also view the four primary forex sessions on the Market tab: New York, London, Tokyo, and Sydney.
Technically, the forex market is an Over The Counter (OTC) market with no physical location, and trading happens 24 hours per day, 5 days per week. However, volume tends to pick up when the operational hours of these four locations overlap, especially when London and New York overlap.
The Trades tab is especially interesting because you can see the account activity of verified traders. Notice the section that has a Leaderboard for Live Accounts.
The Leaderboard is automatically ranked by the Monthly return, although it gives no credit to the actual account size. Therefore, to find the truly successful forex traders, change the settings to the Yearly return:
If you look through the list, you will find a few small accounts, but most of the forex traders who show up on the Leaderboard under the Yearly return have very large accounts (over $100,000).
These forex traders also all have something else in common: long-term trading.
Check out this account as an example:
This forex trader has a current account value of $343,714 with a yearly profit of $103,373 so far - really that's a $100,000 gain in only about 7-8 months. They started with an initial deposit of only about $3,000.
If you look through their account several years back, you can see that they started off as a daytrader and lost a lot of money in the beginning several times. For the first 2 years, this forex trader had virtually zero account growth overall. They would manage to win some gains only to lose it again from their daytrading.
However, about a year and a half ago (from when this screenshot was taken) this forex trader started trading more long-term, with trades lasting for weeks (and even months) at a time. Their account grew very fast from this type of trading.
Here's a list of trades lasting for 12 days, 2 weeks, and 4 weeks. This forex trader also has trades lasting for 8 weeks.
And the rest is history for this forex trader.
If you want to know why long-term trading works, then read How to Win in Forex.