Forex Sentiment Analysis with Python

The most important catalysts for forex market movements are news, economic data, and also market sentiment. Market sentiment refers to the overall attitude of traders toward a particular forex market. Positive sentiment and expectations push up the forex prices, while negative sentiment and news releases increase the tendency to sell. Sentiment analysis is the process of analyzing market sentiment by detecting positive or negative sentiment in text. Trading decisions that concern market sentiments will minimize the loss risk. This research aims to gain forex market sentiment and compare it with the actual price. This analysis can be a useful tool to help traders understand and act on price behavior. We gather the sentiment data from several forex Twitter accounts, vote the compound sentiment, and compare the vote result with the actual price. As it's not the only factor that affects the final price movement, the compound sentiment can't be a single tool to predict the actual price. News releases and technical indicators are the other indicators to consider in trading decisions.