Economic Calendar for Binary Options
Trading binary options and Forex to an economic calendar is a very popular technique that many traders use to capitalize on market fluctuations following economic data and news releases. We’ve partnered up with Investing.com to provide you with an economic calendar in real-time optimized for trading binary options. All events listed below are expected to create noticeable market fluctuations, visible especially in shorter time frames. To understand and to configure this calendar please scroll down this page to the instructions below the calendar window.
Changing the time to your location
This news calendar is set to Eastern time (USA & Canada) GMT:-5:00. The first thing you need to do before you start using this calendar is to sync it with your time. Obviously depending on the country you live in this will vary. If you live for example in London you would need to set the time on this economic calendar to GMT Dublin, Edinburgh, Lisbon, London. In order to do that click on the present time in the top navigation.
Select your current location or nearby city from the drop down menu and the calendar will automatically refresh and load all economic data with your correct time.
Changing the week view to day view
When this calendar loads, by default it is set to show all major economic releases in a weekly view. As mentioned earlier all these releases will most likely create volatility in the currency they relate to all its pairs. This is indicated by the little flag and currency symbol next to each release. However, there is a way to modify the weekly view and display all news, even those with lesser importance, in a daily view. In order to change this click on ‘This Week’ drop down menu at the top of the economic calendar.
In the drop down menu choose ‘Today’ or ‘Tomorrow’ or ‘Yesterday’. The table will reload and you’ll be able to view all the financial releases on that given day. The ones with three grey bull heads next to them indicate highest volatility.
Understanding and using the calendar
This economic calendar is much more than a calendar of influential data and news releases. It also shows ‘Actual’, ‘Forecast’, and ‘Previous’ numbers next to each news event which help to understand how the market might move.
The Actual column shows the number that loads in real-time when the news in announced. This is the most important number in this table but it has to be looked at in relation to the Previous and Forecast numbers. If the Actual number is green it simply means that it is higher than the Forecast number. It simply means that the data release is better than expected and in most cases the currency will rise. If the Actual number is less than the Forecast number it will be displayed in red, and in most cases currency will fall. The bigger the difference between the Actual and Forecast numbers, the greater volatility may be expected.
How to trade using the economic calendar
The economic calendar is one of the trading tools that should be looked at by all market traders. However trading to economic news releases is a skill on its own. If you’re using purely technical analysis in your trading and rely on indicators this calendar will show you when not to trade because the markets may temporarily exhibit huge price fluctuations that no indicators can be programmed to anticipate.
However, you may choose to belong to a group of traders that focus solely on these economic releases and capitalize on the resulting price movements. For binary option traders we recommend also looking at the currency’s live charts to see what is happening before and after each release. If the release will influence the Euro than look at EUR/USD pair to see what happens. You can view 1min, 5min or 15min time frame. You will sometimes notice price movements before the actual numbers appear in the calendar. This may be caused by investor speculations and a temporary market uncertainty until the data is actually released. You will also notice that often the currency pair will be in a sideways market for about 10-30 min prior to an important release. Then when the release numbers are published the currency will suddenly break out from it’s sideways and confined movement and suddenly go up or down depending on the released numbers and possibly begin a strong and decisive trend that may last 15 minutes, a day, or even a week.
Of course in that time the market will respond to all types of investors and automated machines and try to correct itself on numerous occasions even during a strong trend. If you’re trading short term binary options and want to trade with the trend your entry points would be when the price falls to the moving average and starts to go up again. To learn more on this subject and to become a much better binary trader please read the articles in our Education section such as: 7 Candlesticks formations every binary options trader must know and How to recognize trends in the market.