LOOKING AT THE FA CALENDAR
The resources section of my website provides links to a couple of
Fundamental Announcement calendars.
Every day is different, with different countries posted to release
announcements. Often you will see the same country making
multiple announcements for the same time. This is the best setup as
when there are multiple announcements happening simultaneously
then the market is much more likely to react strongly. One danger is
that if there are multiple announcements then there is a greater
chance of whiplash happening.
You could also attempt to trade when there is only one
announcement at a particular time from a particular country,
however it becomes less likely that you’ll see a major price move,
unless the news is significant (as explained below). Generally it is
best if there are two or more at the same time for less significant
announcements.
You should also pay attention to what the announcement appears to
be. Release of key economic figures seems to generate more action
than speeches (generally). Really, it’s difficult to say anticipate
what will create strong reactions, but after practicing for a while 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 “Key
Announcements”.
Furthermore, economic figures released in the morning time of that
particular market seem to have more impact than later ones;
announcements that happen early during market overlap times tend
to be best.
Look at what is posted for the next day to plan accordingly; deciding
what time(s) seem to offer the best opportunity (or to watch out for),
and which currency pair you plan to trade at that time.
Set your plan in advance and you should have better success, simply
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because you can plan to be ready to trade for those times and you’ll
be thinking clearer about how to proceed with the trade. What you
might want to do (highly recommended) is to review the upcoming
week in the Fundamental Announcements calendar during the
weekend, and write out a plan for the week detailing the exact times
you plan to trade and on which currency pairs (doing the FA After
Surf techniques). The ten minutes spent doing this separates you
from novice traders, showing you are a professional quality trader
that takes the time to properly plan your trades, and then trade your
plan.
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