The economic calendar serves as a source of information and trading chances for traders and investors. Traders frequently time their entry and exit of positions to match with either an event announcement or the high trading volume that generally precedes a scheduled announcement.
New GDP growth rate figures, non-farm payroll numbers, and interest rate choices are all examples of what an economic calendar might contain. These economic data releases occur frequently-at least once a week on average, and perhaps every day during exceptionally busy weeks.
The economic calendar keeps track of these events as well as the intended release time. Minor events are either labeled “Low” (as in “low impact”) or not labeled at all if they are expected to have a minor market impact.
“Medium” is the term that indicates events that may have an impact on the market, and it is commonly indicated by a yellow dot or a yellow star. Yellow shows the need for caution at this time. A substantial news/data release with red stars, red dots, or “High” indications is highly likely to affect the market significantly.