What is an Economic Calendar?

What is an Economic Calendar?

An economic calendar aggregates scheduled data releases, central-bank meetings, speeches, auctions, and other events that can move markets. Professional traders map their week around the calendar to avoid surprises, position ahead of catalysts, and manage risk.

What to Track

• Event details: Name, release time (with timezone), expected impact, consensus forecast, and prior readings.
• Source credibility: Cross-check times with official agencies; delays or embargoes occasionally occur.
• Holiday schedules: Market closures and liquidity-thin sessions can amplify volatility.

Trading Around Events

• Position sizing: Reduce exposure or tighten stops ahead of “red” events like CPI, NFP, or central-bank decisions.
• Scenario planning: Outline bullish, bearish, and neutral reactions for each major release so you know how to respond.
• Post-event review: Compare actual results with forecasts and analyze price response to refine future strategies.
• Correlated assets: Remember that some events (e.g., oil inventories) affect multiple currency pairs via commodities or risk sentiment.

Advanced Guidance

Build a repeatable, rules‑based process so decisions are consistent across sessions and instruments. Start from context (higher‑timeframe structure, positioning, macro tone), then define precise triggers and invalidation on execution charts. Track spread and depth so your order type matches conditions. Pre‑compute scenarios (breakout, fakeout, mean‑revert) and map actions for each to reduce hesitation.

Execution Framework

• Plan entries at levels with confluence (structure, momentum, time‑of‑day).
• Place stops beyond the logical invalidation, not arbitrary distances.
• Target at least 2–3R; scale out methodically and trail remainder.
• Avoid thin liquidity windows unless the setup explicitly requires it.
• Record slippage and spreads; poor fills can erase edge.

Review Loop

• Journal setups by session and pair to learn where they excel.
• Tag trades by catalyst (news, trend continuation, range breakout).
• Recalculate expectancy monthly; prune underperforming variants.

Risk Controls

Keep daily loss limits, reduce size after consecutive losses, and pause during regime shifts. Survival enables compounding; treat discipline and execution quality as part of your edge.