LOOKING AT THE CALENDAR

LOOKING AT THE CALENDAR
LOOKING AT THE CALENDARThe resources section of my website provides links to a couple ofFundamental Announcement calendars (see Appendix A).Every day is different, with different countries posted to releaseannouncements. Often you will see the same country makingmultiple announcements for the same time. This is the bestsetup as when there are multiple announcements happeningsimultaneously then the market is much more likely to reactstrongly. One danger is that if there are multiple announcementsthen there is a greater chance of whiplash happening (more aboutwhiplash later).You could also trade when there is only one announcement at aparticular time from a particular country, however it becomes lesslikely that you’ll see a major price move. Generally it is best ifthere are two or more at the same time.You should also pay attention to what the announcement appearsto be. Release of key economic figures seems to generate moreaction than speeches (generally). Really, it’s difficult to sayexactly what creates strong reactions, but after practicing for awhile you should get a feel for what to expect.At the end of this section I provide you a list of “key”announcement types to pay attention to. See section titled “KeyAnnouncements”.Furthermore, economic figures released in the morning time ofthat particular market seem to have more impact than later ones;announcements that happen early during market overlap timestend to be best (more about market overlap later).eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.comDuplication and distribution of this material is strictly forbidden20Look at what is posted for the next day to plan accordingly;deciding what time(s) seem to offer the best opportunity, andwhich currency pair you plan to trade at that time.Set your plan in advance and you should have better success,simply because you can plan to be ready to trade for those timesand you’ll be thinking clearer about how to proceed with the trade.What you might want to do (highly recommended) is to review theupcoming week in the Fundamental Announcements calendarduring the weekend, and write out a plan for the week detailingthe exact times you plan to trade and on which currency pairs.The ten minutes spent doing this separates you from novicetraders, showing you are a professional quality trader that takesthe time to properly plan your trades, and then trade your plan.KEY ANNOUNCEMENTSThere are certain Fundamental Announcements that are muchmore likely to result in strong movements. If there is uncertainty(good for your trading) about what the announcement will be thenthere will be an immediate and often drastic effect on the currencymarket (more drastic news = more drastic price move).The most important to watch for are Unemployment Reports, andInterest Rates. Also high on the list to look for are ConsumerPrice Index (CPI), Inflation, and Gross Domestic Product(GDP). Less important (meaning less likely to result in the jumpsyou are looking for) but still worth keeping an eye on include M2(Money Supply), Treasury Budget, Producer Price Index (PPI),Retail Sales, and International Trade.