While traders have sound fundamental and technical knowledge of the market, having an idea about the market sentiment adds depth to a trader’s overall view of forex. Using sentiment analysis tools, traders can gauge the market movements and make informed decisions.
Infosiphon Technology was used for analyzing patterns of Foreign Exchange Trading by collecting comments from traders and analyzing them using an NLP-based Sentiment Analysis engine. The model understood the public sentiment by mining FX-related tweets from Twitter and Redditt posts on a large scale, in addition to other sources. This curated time-series data was used for training the model. As the relation between public sentiment and currency-pair movement values was found to be non-linear, the model was built accordingly. The final result was a system predicting the movement of the currency pair in relation to the general consumer sentiment expressed publicly. This information was used to augment the data received through technical analysis to provide decision support for FX trading
The Infosiphon platform has helped develop sophisticated financial analysis tools. Here are some key features of the Forex Trading Sentiment Analysis solution.
