19 Pages Posted: 12 Jan 2013
Date Written: January 9, 2013
In this study we propose a short-term Forex trading strategy that uses the principles of technical analysis to create buy or sell signals based on data derived from fundamental news. Short and long term sentiment inflection points are captured by consulting a set of sentiment indexes that measure the trailing sentiment on both scheduled and unscheduled economic and geopolitical news events. The sentiment indexes are proven to predict intraday price moves in the EURUSD for up to several hours after an inflection point.
Keywords: news sentiment, news analytics, RavenPack, Forex, EURUSD, scheduled news, unscheduled news, macro, sentiment, intraday, trading, inflection points
JEL Classification: G12, G13, G14, G15
Suggested Citation: Suggested Citation
Hafez, Peter Ager and Xie, Junqiang, Intraday Forex Trading Based on Sentiment Inflection Points (January 9, 2013). Available at SSRN: https://ssrn.com/abstract=2198816 or http://dx.doi.org/10.2139/ssrn.2198816
By Meb Faber