If you are about to learn about forex trading, hence you need to understand each of the forex factory calendar indicator. As we know, forex factory is a site which provides forex calendar. What becomes a problem for some newbie is how to read the calendar so we can predict the market direction. If that is the cause, then you need to first learn about some indicators which you will find when reading forex factory calendar.
The first forex factory calendar indicator which you should know is the currency. This indicator helps you to find out what currency which will release the news in that day. Hence, you can decide either to trade the pair which includes that currency to get use of its volatile or to avoid the pair with that currency and choose other pair instead so that your technical analysis can run normally.
The next indicator is impact which in forex factory calendar is depicted as a colored symbol. There are four colors which are used:
a. White: shows there is no impact that comes out. Mostly happens when the bank are closed.
b. Yellow: shows the impact is low or it can be said not too influenced.
c. Orange: shows that the impact is in medium level. Usually it can push the market in the range of 25 – 60 pips.
d. Red: the most alerted because it shows a big impact that can move the market into more than 60 pips, or even exceeds 160 pips.
In the right side of the date column, you will find a time column when the fundamental news is released. The default time is based on the US’s time, so you can change time zone depends on your location or the time which matches the market watch on your metatrader.
This indicator is put in the right column of your forex factory calendar. This indicator is very helpful for you to find out the last value released from a kind of news, or in the other words, the last month’s value.
5. Forecast Value
Forecast value or like a prediction value is the data from bank which are obtained from some reliable sources, like economic experts prior to the official release of the value.
6. Actual number
Actual number is a number released by the official institute. This last forex factory calendar indicator is probably something which can make you waiting in worry.