Forex calendar
Obviously, the simplest of approaches to trading on forex calendar patterns is to take a buy-and-hold or sell-and-hold position whereby you enter at the start of the month and exit when it is over. Had a trader been long GBP/USD every December since 1999, he/she would have made over 2500 pips. That means one who had bought a 100,000 GBP position each time would have made over $25,000 on trades which would have required a margin deposit of $3,000 or less. That's a fantastic return! If compounding of returns were considered, it would be substantially higher.
Opportunities in Forex Calendar Trading Patterns
In Opportunities in Forex Calendar Trading Patterns we present a series of daily and monthly patterns appearing in the behavior of foreign exchange rates along with ideas for ways you can incorporate them in to your own trading strategies. This report's 175+ pages contain information we at Anduril Analytics have used quite profitably in our own trading, and you can too!
Calendar Yen Trading Patterns
As is the case with other markets such as commodities, forex demonstrates patterns of "seasonal" behavior which can be traded. These calendar patterns vary from pair to pair due to the dynamics of the currencies involved. In this article, the Yen (JPY) will be the focal point. (Note: The charts and data in this article come from the research report Opportunities in Forex Calendar Trading Patterns.)
Monthly Patterns
If one first takes a look at the market from a monthly perspective, it can be seen that USD/JPY and the JPY-based crosses have months in which they demonstrate clear tendencies. Figure 1 outlines this. The graph takes a month-by-month look at USD/JPY since 1999 (seven years total), which encapsulates the time since the launch of the year, an important watershed moment in the forex market. Each bar indicates the net up month to down month reading. For example, a reading of +5 indicates that there were 6 up years for that month as opposed to just one down year, out of the seven
Application to Trading
Trading based on seasonal or calendar patterns can be tricky. One can never quite be sure when a pattern is going to fail, or change all together. As a result, to blindly trade them with no concern as to risk would be quite foolish. Yes, some of these patterns are very strong. One who sold USD/JPY at the start of each August and closed out the trade at the end of the month would have made over 2200 pips in the last seven years. That's a pretty good take, but there are drawdowns. Sometimes they can be quite large.
Probably the best use of the type of data presented here is in its application to bias one's trading. For example, a day trader could make use of the fact that GBP/JPY has risen 75% of the time on Tuesday's in August to favor long positions on those days. A swing trader could look to sell strength or go with downside breaks in USD/JPY during August with a high degree of comfort that the percentages are in one's favor. And of course a mechanical trader can incorporate the calendar information in to systems.
Seasonal price patterns in commodities are well documented. The same is not as true in forex. Opportunities in Forex Calendar Trading Patterns changes that. This research report takes a month-by-month, and even day-by-day, look at how the exchanges rates between the major currencies tend to move.
Regardless of whether you day trade or position trade, or something in between, the information Opportunities in Forex Calendar Trading Patterns can help you do it better. Get this book now in either digital or hard copy format at a special discount of more than 30% just for Trade2Win members.
Complete Weekly Economic Calendar For Week of XX/XX/XXXX
The importance of this web site is the announcements that DailyFX have bolded.
Why are these important?
FXCM has been known not to accept entry stop orders 5 minutes prior to some announcements, these announcements are more than likely to be those bolded on DailyFX�s calendar! Therefore you now know *in advance* whether or not you can place your stop entry orders 5 minutes prior to the announcement.
The Forex Economic Calendar provides a weekly listing of all upcoming economic reports that can affect the forex market The forex reports include the following information:
Local Date: Date and local time of release
Country: Country issuing report
Name: Report name
Period: Reporting period
Forecast: Represents market consensus estimate for each indicator
Actual: Refers to the figures as they are released
Previous: Represents the last actual for each indicator.
Political and economic events around the world can effect the movement of currency pairs in the FOREX market. Being aware of these events can play an important role in your trading success. At GlobalTec Solutions�, we want to help you succeed as much as possible with your trading software; therefore, we have recently added the 2004 FOREX Calendar to the 4X Made Easy� Web site under the FOREX Tools tab. For your convenience, just click on the following link:
www.4xmadeeasy.com/product/calendar_2004.html
Below are some of the economic events included in the calendar
Bank holidays
Central bank announcements and meetings of the following:
� Bank of Canada (BOC)
� Bank of England (BOE)
� Bank of Japan (BOJ)
� European Central Bank (ECB)
� Swiss National Bank (SNB)
� Reserve Bank of Australia (RBA)
� Reserve Bank of New Zealand
(RBNZ)
� U.S. Federal Reserve Bank (FOMC)
U.S. economic reports such as Gross Domestic Product (GDP), Consumer Price Index (CPI), Employment Rate, Industrial Production, Consumer Credit, Jobless Claims, and Trade Balance are listed per month
Reports such as the Michigan Sentiment; Philadelphia Fed Survey; and ISM Manufacturing & Non-Manufacturing Goods
In closing, I encourage you to do the following before these reports are announced and definitely before making a trade:
Use the FOREX 2004 Calendar so you�ll know when events and reports will be released
Do your homework; research market sentiment as mentioned
From this information, create your trading strategy
Once the reports are announced, you�ll be ready to make your trading decision with increased confidence regardless of how the market reacts.
Preparation is a key instrument in trading profitably and trading profitably is what I want you to do!