One who thinks that intraday trading biased to only technical analysis is entirely wrong. However, the trading needs to consider both technical analysis and fundamental analysis. Stating the obvious but you know that markets also influence by the economic news which releases on a timely basis. For example, someone who is trading in a currency pair in the Forex market needs to understand that currency pair is not just the currency pair but also represent two different economies of the two countries. So, in order to get profitable returns, a trader has to predict the price movement. In order to do that one must be aware of past, present and future economic and financial events.
So, when you start using an economic calendar, you get the access to news events and data releases related to financial and economic markets. These events are also recognized as economic indicators like the gross domestic product (GDP), interest rate decisions, non-farm payroll numbers, and unemployment data among others.
These data are listed on the economic calendar along with their scheduled time of release. If you haven’t given much of thought to the economic calendar then you should too. When you see one, you will notice that some impacts are marked as “Low” or “High” based upon the impact.
Day trader or swing trader needs to be aware of the data that come with red “color”. It is because intraday traders fully understand the volatility. Thus, many day traders prefer to read the economic calendar on a regular basis.
Under normal market conditions, one can assume all the risks associated with his/her trade. But, when we’re in right conditions and suddenly a high-impact data hit the market. And if you day trade option through, you can hold your position through major data. So, the point is, whether you are trading in stocks or currency market, an economic indicator gives clear vision on the ongoing and future happenings in the finance and economies.