This Forex News Indicator displays the release of upcoming and past economic news on the MT4 and MT5 charts. It is displayed as vertical lines(time axis) with information displayed next to each line. It includes the currency of the publication and the degree of its impact.
Economic Calendar MT4 gathers data from news calendars by ForexFactory and Investing.com. The indicator can be used for any financial instrument as long as the necessary currencies are specified. It is suited for those traders who need a reminder of possible volatility increases but are not so much interested in the news itself.
FXSSI Calendar indicator uses both ForexFactory and Investing.com services, To ensure the stable indicator functioning, it connects to both sources simultaneously. If the primary data source fails, the indicator will switch to the second one. This eliminates the problem of MT4 or MT5 terminals freezing when accessing data feeds. Therefore, if you choose this News Calendar Indicator as your primary news indicator, you don’t have to worry that it will stop working at the worst possible time Additionally, the indicator updates data every 5 to 60 minutes(you can adjust this from input parameters).
This Forex News Indicator MT4 can be used on any Forex currency pair and other assets such as commodities, Cryptos, Binary Options, Stock markets, Indices, etc. You can also use it on any time frame that suits you best, from the 1-minutes to the Month charts.
This is an entirely free Indicator without any restrictions made by fxssi.com website. There are more useful free and paid indicators on this website. So check out their other indicators and show some love for the FXSSI Indicators.
What is Economic News
Economic news refers to reports and updates on various economic indicators such as GDP, inflation, unemployment, trade balance, and interest rates. These indicators can have a significant impact on financial markets, as they provide insight into the overall health and direction of an economy. Economic news can also include updates on government policies, central bank decisions, and any major events or developments that may affect the economy.
Traders and investors closely watch these reports and updates to gain a better understanding of the economic conditions and make informed decisions about buying or selling assets. Additionally, economic news can also be used as a tool for fundamental analysis, which involves studying various economic and financial factors to determine the intrinsic value of a security.
How it used in Forex Trading
Economic news releases can have a significant impact on the Forex market as they can indicate changes in a country’s economic health and give clues about future monetary policy decisions. Traders closely watch for news related to interest rates, inflation, gross domestic product (GDP) and other indicators of economic activity.
Interest rate decisions made by central banks, such as the Federal Reserve in the US or the European Central Bank, can have a significant impact on the currency market. When interest rates are increased, that country’s currency tends to strengthen as investors are attracted to the higher returns on offer. Conversely, when interest rates are lowered, the currency tends to weaken.
Inflation data, such as the Consumer Price Index (CPI) or Producer Price Index (PPI), can also have a big impact on the currency market. When inflation is higher than expected, it can indicate that a central bank may raise interest rates to combat inflation, which can lead to a stronger currency.
GDP figures can also have a big impact as they indicate the overall health of an economy. Strong GDP growth can indicate a strong economy and lead to a stronger currency.
Traders can use economic news releases to make trades in anticipation of the market’s reaction. They can also use it to adjust their current positions. In general, it is important for traders to keep a close eye on economic news and events that might affect the currency they are trading. It is also important to note that economic news can be unpredictable and can cause sudden volatility in the market, so traders should always be prepared for potential risks.
How to use Economic Calendar MT4 Indicator to Protect from Economic News?
Every trader had experienced such a case in their career when sudden volatility knocked out Stop the Loss of a newly opened trade. Later it became clear that the increased volatility was the release of some economic news.
It doesn’t matter what kind of trading strategy you practice – you have to consider the release of important news. With Forex News Indicator MT5, you can see these news early and plan ahead.
Make your plan of action in case of an upcoming release, for example:
- Close the trade if the expected volatility range is significantly beyond its target levels.
- Hedge your trade 10 minutes before the news release and open the “lock” when the situation returns to normal.
- Resume your trading no earlier than 15 minutes after the release.
- Avoiding trading at these times if you can
- Read More Economic Calendar Explained and How to Use it
Thus, when you start to take news into account, you will at least protect yourself from unplanned losses.
This Economic Calendar Indicator Features
This News indicator MT4 is made on simplicity and compactness, So it only draws your attention only when it’s needed. Therefore, all marks were put in the lower part of the graph so as not to disturb your trading.
To close the window, just click it. It will also disappear by itself when a new candlestick appears.
Navigate between news. You can switch between news by clicking the arrows below the info panel. The selected news will be highlighted:
Filter news by importance and currencies. In the settings, you can specify for which currencies (countries) and degree of importance to display news.
Grouping news. If several news releases have the same publication time, they will be grouped.
To view which exactly news will be released, call the info panel by clicking the text label.
Tooltip. If you hover over the news, you will see a tooltip.
Forex News Indicator Input Parameters
How to Use News Indicator for MT4 in Trading?
Economic Calendar Indicator is an informational indicator. This means that it doesn’t generate trading signals by itself. It’s usually used to define the exact timing to enter or exit the market.
Only the most volatile news is generally taken into account, but it also happens that news of low importance incites the movement of an asset. Let’s consider a news pattern occurring quite often as an example:
- As we expected, increased volatility occurs immediately after the news release. However, we don’t know whether the movement will continue or it’s a false maneuver.
- We observe that the price has pulled back and reached half the news impulse. This is precisely the time to determine where the price will move further.
- If the price approaches point (3), it means that the news impulse was false and more likely, we’ll see the movement in its opposite direction (as the red line shows).
- If the price approaches the high made during the impulse again, it indicates that the impulse was true, and you can consider opening trade in its direction.
- In this example, the trade was opened an hour and a half after the news release when the volatility had already decreased, traders added to the positions as needed, and the price could safely move in the right direction.
You can come across different approaches and strategies for news trading. However, we would like to remind you once again that trading during the releases is associated with an increased risk. We recommend you use the News Calendar Indicator only to avoid having open trades during news releases.
- Read More Automatic News Trader EA FREE Download