Its so funny to me when i mention Forexfactory in some online forums, social media groups or even during a personal conversation with Forex traders based on fundamental analysis of the future speculation of a peculiar currency in the Forex market; How these traders looks confused and keep asking what is Forexfactory. Anyways i don’t really blame most of these traders as most of them are new bees in the Forex world. Most of them are only taught how to analyse the market technically ignoring the dangers that loom in the market when an economic news is announced. A lot of high economic news have destroyed so many Forex traders accounts and this is because most of them lack adequate knowledge and skill how the Forex market operates.
I will be using this medium to enlighten my fellow traders on how to use the Forexfactory website to your advantage (maximizing profit) and as well as preventing your trading account from encountering sudden catastrophe!
First of all what is Forexfactory?
The Forexfactory (www.forexfactory.com) is a website primarily dedicated and designed for Forex traders on useful information in regards to economic news events and announcements. This tabular news announcement calendar displays a detailed information on the day and time each news of a country will be released, the impact of each news, the previous, revised and actual data or result of the news announced.
However another important feature of the website includes a forum where you can meet other like mind traders where ideas, indicators, expert advisors (robots) or strategies are being discussed and shared. Other secondary features of the website includes a Trade feed where other trader’s positions are showed publicly, a News feed that constantly updates traders on underlying factors driving a currency, a live market quote of each currency pair displayed in a chart, a time displaying the beginning and end of each trading session in the market and lastly a detailed review of all major brokers which can be useful in selecting your choice of broker.
How to synchronize your Nigerian time with the Forexfactory calendar
By default time settings, the Forexfactory time is +6 GMT which will give you a wrong day and time while trying to track news events on the calendar. To change the timing settings to synchronize with Nigerian time, follow these simple steps.
- Click at the time symbol at the extreme top-right of the home-page and you will be redirected to another page which shows a time configuration.
- Click on the time zone box and a list of time zones will be displayed.
- Click on the DST box and put it at ‘OFF’.
- Click on the Time Format box and put it at ‘am/pm’
- Click save settings and the Forexfactory time will adjust to your time in Nigeria.
How to use the Forexfactory calendar to track news event
This is the most useful tool the Forexfactory website offers to its users. At every specific time each day, news data events are being published by the government of individual countries for investors to see. This actual data published for each news announcement can be used to enter profitable trades in the market based on a short, medium or long term depending on the deviation of the actual data from the forecast. The calendar is tabulated in such an easy way that every one can understand. At the left hand side of the calendar comprise of the day, time, currency and the name of news expected. On the right hand side of the calendar consist of the details of the news, actual data, forecast and previous data. To get the list of news to be released for the week, click on the calendar at the top of the home-page and a detailed menu of news event will be displayed on your screen!
How to analyse data reports to your Trading advantage
This is where fundamental analysis comes into play. After setting your Nigerian time to be synchronized with the Forexfactory time, you are ready to start tracking news events and trading them on your trading account. The key to capitalizing on these is to check the actual data released and subtract it from the forecast data. If the result is positive( which most times is displayed in color green) then it means the report favors the underlying currency, hence you buy or sell depending if the currency happens to be the base or quote in the currency pair.
On the other hand if the difference between the actual data and forecast data is negative (which most times is displayed in color red), then it means the report disfavors the underlying currency, hence you buy or sell as well depending if the currency happens to be the base or quote in the currency pair.
Another tip from abstaining from the market is if the actual data result is colored in ‘black’, this actually means the result of the actual data doesn’t have any impact in the market, hence there’s high tendency no significant movement will be seen in the market of the underlying currency.
How to use the Forexfactory website to determine the starting and closing time of each trading session
There are four trading sessions in the Forex market namely the Sydney, Tokyo, London and New York trading session respectively. To be able to view each trading session’s starting and closing time, click on the home-page of the website and scroll down to the bottom of the website where all information concerning trading session is displayed. Each trading session in the Forex market accounts for the degree of the volatility and liquidity of the market.