Economic indicators are snippets of economic data published by various agencies of the government or private sector.
These statistics, which are made public on a regularly scheduled basis, help market observers monitor the pulse of a countries economy.
Therefore, they are religiously followed by almost everyone in the Forex market. With so many people poised to react to the same information, economic indicators in general have tremendous potential to generate volume and to move prices in the markets. The other half of the battle plan is now forecasting the proper short to long-term trend and entering your trades, and exiting them, accordingly.
while on the surface, it might seem that an advanced degree in economics would come in handy to analyse and then trade on the glut of information contained in these economic indicators, a few simple guidelines are all that is necessary to track, organize and make trading decisions based on the data.
Know exactly when each economic indicator is due to be released
Keep a calendar on your desk or trading station that contains the date and time when each stat will be made public. You can find these celendars on the N.Y. Federal Reserve Bank Website using this link: ny.frb.org and then by searching for "economic indicators". The same information is also available on many other sources on the web or from the company you use to execute your trades. You can also get a copy of this calendar on workathome-ng.com
Unlike the financial, political and crises factors, economic indicators occur in a steady stream, at certain times, and more often!
Keeping track of the calendar of economic indicators will also help you make sense out of anticipated price action in the market