Different countries release economic data to the public at various pre-defined times. These economic data provides the countries’ policy makers with a view of the health of the countries’ economy and let them decide better which policies to introduce and which actions to take. Be it to cool down a over-heated economy or to simulate a slowing economy.

Most traders tend to avoid trading the economic data release because such events override any technical analysis that we have done. For instance, consider a stock chart which has been trending upwards, when the plane hit the twin towers, the stock price will turn down no matter how many bullish signals or patterns are there.

The best economic calendar online that I have come across so far is the one from Forex Factory. Why?

• I can set the timezone to the one that I am comfortable with
  
  
• As with most forex economic calendar, economic data release from major countries around the world are presented in one view
• For every economic data release, the currency that it will impact and the level of impact are shown
  
  
• To know more about the economic data, I just click on the folder icon under the “Detail” column. A explanation of the economic data will be shown as well as the source of the data will be shown
  
  
• As an added feature, I can click on the “Filter” button at the top right hand corner of the calendar to just show the events for the currencies that I am interested in
  
  

I have seen some greater than 20-50 pips move in a 5 min chart for the USD/JPY when some market-moving economic data is released. Newbie traders are advised to avoid trading even 2-3 hours before the data is released. After the release of the data and when then market has calmed down, trading can resume.

Some more experienced traders do trade the news for extraordinary gains, very cautiously though.

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