surveycash2: Lesson 14 - Understanding forexfactory terms

In lesson 13 (page 10), we introduced fundamental analysis as one of the techniques of predicting the forex market and went ahead to give example of some sites where we could get fundamental announcements. Some these sites are bloomberg, Reuters, CNN, fxstreet, forex peace army, forex factory etc.

Among the sites, forex factory (ff) is one of the widely used. For this reason, we are going to study it as tool for our fundamental analysis.

FF uses some terms which are pertinent to understanding how the site works. Some of these terms are;

1. Forecas[/b]t - This is a consensus figure given by a group of traders btw 20 -240 about a particular news to be released. News organisation like Reuters and Bloomberg conduct a survey to find out what traders think. They take the average of the result and call it '[b]the forecast'

2. Actua[/b]l - The 'actual' is the actual figure that is released at the time scheduled for the particular news event.

[b]3. Deviation - The difference btw the actual and the forecast is called the deviation. Every news has a minimum deviation o attain in order to trigger a trade.

4. Detail - The 'detail' gives full info about any news event. It tells you about the source of the news, the frequency, the effect on the economy and why traders care about it.

4. Impact - This measures the degree of the news effect on the particular currency. The impact could be high (red), medium (orange), low (yellow) or no impact (white). We are only interested in the high impact news.

EXAMPLE

We are going to look at[b]AUD Unemployment Rate[/b] to be released on Thursday 11, July 2013 by 2:30am. You dont need to know about the news prior to the moment you want to trade. Just click on the folder DETAIL to study it 30mins to the release time.

Once you click on DETAIL, you should be interested in what the news MEASURES[/b]and the [b]USUAL EFFECT.

Here is the general formula

Actual > Forecast = Good for currency, so BUY

Actual < Forecast = Bad for currency, so SELL

The reverse is the case for news that have NEGATIVE effect on the economy e.g UNemployment rate.


fig 14.1 - AUD Unemployment Rate




fig 14.2 - Click DETAIL so see more info




fig 14.3 - Take a look at what it MEASURES & USUAL EFFECT




I will stop here for now so you can take this home. Oya write..


Assignment;

1. What currency pair will you trade for this NEWS and why?

2. what you will do if;

a. Actual > Forecast

b. Actual < Forecast
c. Actual = Forecast

Submit 1st thing tomorrow morning.

kasonud: Oga is the time in this site corresponding with the local time?

surveycash2:

Your question inspired lesson 14. Hope it is answered now? Sorry for the late response.
My surveycash moniker was banned and have been waiting for the release to post.

surveycash2:

perfectly answered sir... i apprec8
You need a means of Identification for future purposes (not for forex alone) and I think driver's licence should not be tough to get. How do you cash checks?
Yes, you can use Mastercard on some brokers that accept our cards like ifcmarkets, xemarkets. Alternatively, liteforex and fxopen have funding options in naira. Just check them out.

bolaji4u20: Plz survacash I do love to meet u one on one one day for real lecture hv being trying to get the types of ppl like u over 10 gud yrs. Bt all my efort is no

domcarez: @mr nice guy, pls gv us the link to the youtube video on forex.tnx

Mr_Nice_Guy: they are pools out there for you to make choice of... just type the keyword or whatever you esire to learn..... first, start this thread from the begining, visit babypips.com.. practice whatever you have learnt on your trade platform instantly... revise and review..

domcarez:
tnx bro, i appreciate

surveycash2:

No. It's 6hours behind Nigerian Time.

williams20: Hello Mr Surveycash , God bless you abundantly , pls I'm interested in the one day practical training in lagos . My email is peter_ogundele@yahoo.com
Pls can I start trading with my X touch Android 7inch tablet

surveycash: @Williams20...You're welcome and Amen. You'll be notified once a date has been chosen.
For a start, get a PC as Ehisod adviced. Trading on a tablet is very limited as you'll be deprived of most of the features of the trading platform.

@Sassy madam...
Amen and you too. Welcome to our class. Invite your friends too.

@Ehisod...
Thanks for the answers. Just to chip in, you don't need to register on forexfactory to localise the time. Tutorial on how to do that is explained in lesson 9 or 10.

Bosariayo: Hello i sent u a mail,pls reply thanks

Chuksemi: break in transmission?

No one submitted his/her last assignment. So, I thought the ASUU strike don enter here too

surveycash:

No one submitted his/her last assignment. So, I thought the ASUU strike don enter here too

samfaj:
Chai! Oga surveycash, na network dey do me one kind tin here. Anyway, here is my own solution 2 d Assignment
1. Currency pair with high impact news, because there might be great movement after d release of d news.
2 a. Buy
b. Sell
c. No trade.
Thanx.

Network? Since July 11. You no sabi give excuse . Make I see the assignment. For attempting, you already have 50%. Let's wait for submission before solving it.

surveycash:

Network? Since July 11. You no sabi give excuse . Make I see the assignment. For attempting, you already have 50%. Let's wait for submission before solving it.

surveycash: If you will like a Lagos forex workshop, like this post.

domcarez:
@surveycash, what about pple that do not reside in lagos, i am really interested though i stay in enugu, how do i benefit, meanwhile i have read 4rm page one to the last page, reply asap.tnx

If you can organise 100 your people together, I can come down to Enugu . Same goes to other locations

Mr_Nice_Guy: please, is there any alternative Ogas in the house to transfering cash between me and my broker other than domiciliary or a current account?
i dont have a national id card, drivers licence or internationaal passport (and i cant get anytime soon), thats the reason i cant open any of the above stated bank account?... i am using savings... please any alternative(linked to my savings account or how i can open any of the accounts without those id i am lacking, though i have a student id card) will greatly help..

also can can i use my mastercard linked to my savings account to do this to and fro transaction..
happy pips cycles, to all the pips lords in here.. Please i need an urgent help.. thanks