The Forex Factory calendar identifies all economic announcements and news that will be released throughout the month This helps determine which announcements have the most impact on the market; and what is expected by the traders from the announcement.
1. The first thing is to focus on announcements that can have a high impact on the market. This is what will cause valuable movements in trading.
2. After identifying all the high-impact announcements for the day, the next step is to monitor the expected number / number and how it relates to the nominal number released. The possibility of this deviation from expectations contains all the potential.
3. The Forex Factory calendar provides a useful description of each announcement and how possible irregularities will affect the currency of the country where the announcement was made.
4. Next, you need to determine what effect is expected, if the numbers come out better or worse than expectations. If, for example, the amount is better than expected, the trader will want to buy more of that currency and if the news is worse than the expectation, the trader will look to sell it.
5. After you see the news and you have your perversions, you will have a very good idea about the short-term sentiments for that currency, and can look for trading settings that are in line with that sentiment.
6. If the news brings up bullish sentiment, make sure that the next signal you take is long trading. And vice versa for bearish sentiment.