Usually, important economic events are known in advance. And in order to make it easier and more convenient to search for information on factors that affect prices, an economic calendar has been created.
The economic calendar is a table that contains macroeconomic publications, events that are important. In order to make it convenient to analyze the news at the moment, the index values, the publication forecast and the actual values are located on the same line in the calendar. Using this type of calendar, you can determine the most successful moments for the operation, while increasing the level of trading profit.
The economic calendar on Binomo is one of the most convenient and practical. This widget will be very useful for traders.
What does the classic type calendar contain?
- The first column indicates the time period when publications were made.
- The following is an affiliated asset. Be careful that the effect of the publication is greater when it is combined with a currency that is not being traded now. For example, the Japanese currency is the yen. In this case, it can be a dollar or any other monetary currency in Europe. And if we are talking about the American dollar, then the effect will be manifested on all assets, the contract for the difference of which in the denominator has the national currency of the United States.
- The significance of the published. Here it is worth paying attention to the dependence of the actual value on the expected.
- Name of the event. Many people think that this column is not particularly important. But users with macroeconomic principles understand the causal relationship between previous publications and current publications.
- The value of the publication of the current. In order to make it easier for traders who are just starting their journey, the results are indicated in different colours. The green colour is the result, which leads to higher prices, and red is the result, leading to lower prices.
- Forecast. It is handled by international agencies in this field. Owing to the forecast, proprietary quotes are moving ahead of publication.
Important! A quote is a certain price that the seller or buyer calls, for which they are ready to either buy or sell.
- Previous value. It is a guideline in order to understand what to expect from the current publication.
How are prices and trade formed on the news?
If the publication confirms that the price should increase the fact, then this does not always mean that it will rise. Since the first is the formation of prices from the forecast. After all, if the fact of growth is ascertained, but it is lower than the projected levels, the price will decrease.
Let’s consider models of work with a calendar:
The first model is not to pay attention to important news.
If you do not have confident knowledge in fundamental analysis, then this is the model for you. This is because the strategies of technical indicators do not have the ability to predict the occurrence of fundamental factors.
The second model – opening an order after the publication process.
Pay attention to the colour of the actual result. As mentioned earlier, red indicates a fall in price, while green, on the contrary, means growth. The price immediately gives a reaction to the news, so choose intermediaries and platforms for work that respond quickly.
Third – opening a position in advance.
A transaction can be opened in advance only if it is in your power to predict the final without any help, yourself. Follow the principles of matching the start time of the order and the expiration time.
Summing up, we can conclude that the Binomo economic calendar creates all possible conditions in order for the user to be easy and understandable, and most importantly, profitable.