Intraday Forex Trading Based on Sentiment Inflection Points

19 Pages Posted: 12 Jan 2013  

Peter Ager Hafez

RavenPack

Junqiang Xie

RavenPack

Date Written: January 9, 2013

Abstract

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

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

Peter Ager Hafez (Contact Author)

RavenPack ( email )

260 Madison Ave., 8th Floor
New York, NY 10016
United States
+34 662 180 797 (Phone)

HOME PAGE: http://www.ravenpack.com

Junqiang Xie

RavenPack ( email )

260 Madison Ave., 8th Floor
New York, NY 10016
United States
+1 646 216 2140 (Phone)

HOME PAGE: http://www.ravenpack.com

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