Getting Started with Economic Insight
It's time to get started!
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.
|Pip||The “percentage in point” or “price interest point.” This term is used to define the unit of change that takes place in the FX currency pair.|
|Price Volatility||The day-to-day percentage difference in the price of any given instrument.|
|True Range||The highest value out of the following 3 options:
1. The current high minus the current low.
2. The absolute value of the current high minus the previous close price.
3. The absolute value of the current low minus the previous close price.
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?
Pip Values are important to traders because it helps them form a better risk management trading strategy. It also helps traders when determining their Take Profit & Stop Loss targets.
Lets dive in!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
Price Volatility: The Volatility Tab
There are three filter criteria provided in the Volatility Tab. Start by going through and choosing what options best fit with your investment strategy:
|FX Pair||Choose from a list of 117 FX pairs!|
|Post Event Observation Period||Calculations are done for all popular time frames used by FX traders. We have 5 observation periods starting at 5 minutes after the event up to 4 hours after the event.|
|Different Outcomes of Historical Economic Events||Do you want to see the results for:
- If the Actual Result was below Forecast Value
- If the Actual Result was above Forecast Value
- If the Actual Result matched Forecast Value
- All of the above outcomes
Based on the selection of the above 3 filter criteria, you can then find information about the following parameters:
True Range Pips:
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.
Average True Range Pips:
Here you can see the average volatility measured in True Range Pips over the last 1 year.
Ratio of Bullish vs. Bearish outlook for an FX pair:
View if the economic event had a Bullish or Bearish impact on the FX pair in the past.
How to prepare your trade.
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.
Price Direction: The Impact Tab
There are two filter criteria provided in the Impact Tab. Start by going through and choosing what best fits with your investment strategy:
|FX Pair||Filter through 117 different FX pairs to find the one you are interested in.|
|Post Event Observation Period||We offer 4 different observation periods ranging from 15 minutes after the event to 4 hours after the event.|
Based on the selection of the above 2 filter criteria, you can then find information on the 2 parameters below:
True Range Pips:
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.
Arming you for success in today's markets.
Economic Insight arms traders with the tools you need to monitor, anticipate and act on
market-moving economic events. Its 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. With volatility and price direction, Economic Insight enables traders to make timely and educated
decisions. Meanwhile, its transparent, interactive and mobile-friendly experience fulfills your hunger for rich data insights and transparency.
In May 2020, Economic Insight was awarded the “Best Specialist Product” at the Technical Analyst Awards.
Helping traders act on opportunities.
Our simple "trade set-up" feature enables traders to easily configure the risk/reward ratio they would like to use for a currency pair and see the corresponding take profit or stop loss they would incur. After tweaking to their own personal preference, traders can place a trade using those levels with the click of a button.
Risk Management made simple
Traders can determine their ideal position size as well as their Stop Loss and Take Profit targets using the historical Average of True Range pips. From there, they can easily monitor events they believe will carry an impact on their positions by adding it to their calendar of choice.
Tangible historical information
Through a combination of the popular "true-range" indicator, a view of the price change and historical average of true-range, Economic Insight enables traders to better understand the impact that a particular economic event will have on an FX pair and enable them to build a strategy around it.
Plus: all the great features of our calendar app!
FX Charts tied to Economic Events: With over 115 FX charts mapped to different economic events, traders can easily monitor their pairs through real-time pricing and quickly act if needed.
Historical performance: The “forecast” and “actual” values over the last 5 years are plotted out for each economic event, enabling traders to easily discover the historical trend and better understand its influence on the currency.
Timely analysis of macro developments and market events in the global economy.
Through a balanced feature set of detailed real-time data, educational guidance and customizable options, the Economic Calendar empowers traders of all skill levels to take control of their investments.
Traders can watch as the "actual" price updates in real-time to see how it compares to the "forecasted" value or take a peek at how similar events previously played out on the FX chart, enabling them to act confidently in the future!
Markets never sleep, which is why the Economic Calendar looks great on all devices, enabling your investors to stay up-to-date on key market movement, even when they're on the go!
Traders can configure the risk/reward scenario they are comfortable with and easily copy the levels to the order page.
The macro-economic data is tracked and updated in real-time, ensuring your traders are always acting on the most recent data!
Traders can focus on what’s important to them by filtering by country or the importance level of an event, making the insight our calendar delivers more actionable!
You will LOVE the ability to gather exact data points while hovering over chart or zooming in to particular events of interest.
PREMIUM USER EXPERIENCE & ANALYTICS
Welcome to Economic Insight - We Make Economics Relevant
Timely analysis of macro developments and market events in the global economy, and their implications.