FFcal indicator - new version
The founder of the theory of exchange trading, Charles Dow, opened the postulate about the impact of any news and events on market quotes. And if it is impossible to predict a number of political decisions, actions of country leaders or the outcome of meetings, negotiations, then the release of economic news always has a predetermined schedule and a predictable result.
So, the hero of today's review is the legendary FFcal news indicator in the latest and current version. Consider how its settings have changed, how to properly configure the indicator and how you can apply it to work in the Forex market.
Characteristics of the FFcal Indicator
Platform: Metatrader 4
Currency pairs: any
Trading Time: Any
Type of indicator: non-trading, auxiliary, news
Recommended brokers: Alpari, Exness, Amarkets
Data of news events are published in economic calendars, which are a table, which shows: time of issue, currency, name of the news, its preliminary and actual value.
A lot of resources provide this kind of information on the Internet, but the ForexFactory information portal is considered one of the best news providers, the reasons for this are set forth in a separate article on our website.
FFcal is an indicator that transfers information from the economic calendar of this well-known among Forex traders resource directly to the Metatrader 4 chart. The indicator is simple and elegant, the trader sees two upcoming news with a reverse timer and a note about their importance in the window.The developers did not clog the field with a large number of indicators due to the fact that each disciplined currency speculator begins the day by studying the calendar, noting the time of release and the importance of the event, preparing in advance for a possible strong market reaction.
Daily important events of the upcoming trading day can be found on our website under the heading "Forex analytics". The “Fundamental Analysis” section publishes a daily release time and a list of news that you should pay attention to.The FFcal indicator removes the need to leave reminders after the morning market analysis and serves as a “fundamental alarm clock" inside the day. It additionally notifies the trader about the imminent publication of any statistics.
Installation and configuration of the indicator
After downloading FFcal, unzip the archive, install the mql4 file in the "Custom Indicators" section of the Metatrader 4 trading platform. The indicator installation algorithm is described in detail in an article on our website.
After restarting the terminal, select and drag the FFcal indicator onto the chart from the “Navigator” window (1) or attach it to any window of the currency pair chart via the “Insert” menu, the “Indicators” option, selecting it in the “Custom” section in the list.The correctness of the installation will be indicated by the appearance of information about the next two news, if this did not happen, check the settings for permission to import dll (1) libraries, and as an extreme option, write the name of the ForexFactory website address in the field (2).At the moment of attaching the indicator to the chart, its settings window will open, tab “Input Parameters”.
- ReportAll (currency name) - the option has two values: true / false, which enable / disable statistics for a particular currency;
- Enadlelogging - logging of logs, defaults to false (disabled);
- ShowNextTwoEvents - display two news, the default is true (enabled);
- ShowVertNews - a vertical line that occurs during the news release, is disabled by default;
- Txt - five settings for the font size and color scheme of the text alert placed in the chart window;
- VertTxt - Six settings for the coordinates of the location of the text on the chart;
- Newcorner - the parameter binds the inscription to one of the 4 corners of the chart window, depending on the set value from a series of integers (1-2-3-4);
- SaveXmlFiles - option to write news to a file, disabled by default.
Options for using the FFcal indicator
The results of economic news have a previously known power of influence on quotes of national currencies, indicated in the FFcal indicator as high or medium, high or medium importance of news. This helps to accurately predict the jump in volatility, which allows intraday traders:
- Close positions in advance and do not trade during the news release;
- Close orders with a minimum profit.
A surge of volatility will “get” the stops that are not placed large within the day, regardless of whether the news was in the direction of an open transaction or against it - important news, as a rule, causes a spread of quotations in both directions.
If a trader is confident in the direction of the news impulse, and it coincides with the current trend, he may increase the size of the stop at the time of the news release, but this is an extremely undesirable option. The reaction to news is always unpredictable and can unfold quotes even when data “favorable” for a particular currency is released on the grounds that they were “pre-played” by traders in the medium-term trend.
That is why all news work strategies are in no way connected with analysis, since they use two orders at once - for buying and selling. The trader solves only tactical issues:
- What indent from the current price to choose for placing pending orders;
- How and when to close the second order provided that the first deal is worked out;
- How far to set take profit.
Properly planned tactics of working on the news can be quite profitable because of a large number of previously known factors, but it is pursued by brokers using the methods described in this article on our website.
The FFcal indicator will not be superfluous for a trader in any terminal of any broker; to refuse to monitor the news is the same as to do without a clock or an alarm in everyday life. It can increase the profitability of any trading system if the trader takes into account news events and avoids unnecessarily triggered stops due to a jump in volatility during the release of important news.
The tactics of “sitting on the fence” at the time of publication of important economic data will also help save time, nerves and money. Consistent monitoring of market reaction and indicator parameters will allow the trader to better understand the nature of fundamental analysis with the ups and downs of national economies, inflation, interest rates and other objective factors that clearly knock out or raise national currencies.
Other news indicators:
- Truly News Indicator
- More news indicators