TC Economic Insight arms today's traders with the tools they need to monitor, anticipate and act on market-moving economic events. It's actionable real-time data, powerful impact and volatility analysis tools, and interactive charting enables traders to identify and assess how events are impacting FX pairs and form timely, educated decisions.
First, lets define some popular FX trading terms that you’ll need to know to fully take advantage of Economic Insight when making a trade decision. If you feel comfortable with the terms below feel free to skip ahead to learn more about our analytics.
As you explore Economic Insight, you'll notice that we convert True Range calculations into Pip Values. Why do we do this?
Economic Insight uses the popular volatility indicators “True Range” to provide analytics based on tangible historical information. We then convert this value to True Range pips because this indicates to the trader the magnitude of historic pips movement in an FX pair after an economic event was announced.
Why should you include Pip Values in your trading strategy?
Economic Insight analytics deliver value to traders by providing the Price Volatility and Price Direction of an FX pair after an Economic Event occurs.
We do this based on 3 scenarios of the Economic Event:
1. If the Actual Result was below Forecast Value
2. If the Actual Result was above Forecast Value
3. If the Actual Result matched Forecast Value
There are three filter criteria provided in the Volatility Tab. Start by going through and choosing what options best fit with your investment strategy:
Based on the selection of the above 3 filter criteria, you can then find information about the following parameters:
The bar chart shows the historic True Range Pips. This measures the volatility of an FX pair during the observation period.
If you selected the observation period to be “1 hour after the event”, and the event occurred at 11am, the bar chart would show the volatility in True Range pips between 11am and 12pm.
This bar chart shows the historic Price Change, indicating if the FX pair was Bullish or Bearish. It shows the price direction of an FX pair at the end of the observation period.
If you selected the observation period to be “1 hour after the event”, and the event occurred at 11 am, the chart would show if the FX pair was Bullish or Bearish at 12pm in comparison to the price at 11am.
Here you can see the average volatility measured in True Range Pips over the last 1 year.
View if the economic event had a Bullish or Bearish impact on the FX pair in the past.
Within the Volatility Tab, you can easily configure the risk/reward scenario for an FX pair and see the corresponding Take Profit and Stop Loss you'd incur.
As you scroll through the Calendar View, quickly get to this section by clicking "View Levels & Trade". After tweaking the levels to your own personal preference, click "Copy Levels and Trade" and these levels will be copied to your broker's order page.
There are two filter criteria provided in the Impact Tab. Start by going through and choosing what best fits with your investment strategy:
Based on the selection of the above 2 filter criteria, you can then find information on the 2 parameters below:
The Impact Tab shows the historic True Range Pips for an FX pair displayed in a 5 minute price chart. It shows the volatility of the FX pair during the observation period.
If the selected observation period is set to be “4 hours after the event” and the Economic Event was at 12pm, the chart will show the volatility in True Range pips between 12pm and 4pm.
As we view the historic Price Change in a 5 minute price chart, the red arrow indicates if the FX pair resulted in a Bullish or Bearish price movement. It shows the price direction of an FX pair at the end of the observation period.
If the selected observation period is set to be “4 hours after the event” and the event occurred at 12pm, the chart will show if the FX pair price was Bullish or Bearish at 4pm in comparison to its price at 12pm.
We hope you now understand how powerful Trading Central's insightful investment analytics can be! Take advantage of the TC Economic Calendar today to easily monitor, anticipate and act on potentially market-moving events!
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