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News Analysis & Alert System Guide

Overview

The enhanced Gold Trading Simulator now includes a comprehensive news analysis and alerting system that provides real-time market intelligence and automated notifications for significant events.

Key Features

1. Real-Time News Feed

  • Aggregates news from multiple sources (Alpha Vantage, Finnhub)
  • Automatic sentiment analysis using TextBlob
  • Relevance scoring for gold-specific news
  • Impact assessment (HIGH, MEDIUM, LOW)
  • Category classification (MONETARY_POLICY, GEOPOLITICS, ECONOMIC_DATA, etc.)

2. Intelligent Alerts

  • Price movement alerts (spikes, drops)
  • Support/resistance breach detection
  • High volatility warnings
  • Breaking news notifications
  • Economic event reminders

3. News-Price Correlation

  • Tracks how news events affect gold prices
  • Measures correlation strength
  • Identifies significant market-moving events

News Feed Features

Sentiment Analysis

The system analyzes every article and assigns:

  • Sentiment: POSITIVE, NEGATIVE, or NEUTRAL
  • Sentiment Score: -1.0 to +1.0 scale
  • Overall Market Sentiment: Aggregated across all articles

Impact Classification

News articles are scored for gold market impact:

  • HIGH: Federal Reserve decisions, major geopolitical events, significant inflation data
  • MEDIUM: Economic indicators, central bank commentary, moderate policy changes
  • LOW: General market news with indirect gold correlation

Content Categories

  • MONETARY_POLICY: Fed meetings, interest rate decisions, QE announcements
  • GEOPOLITICS: Wars, conflicts, sanctions, international tensions
  • ECONOMIC_DATA: CPI, GDP, employment reports, PMI data
  • MARKET_SENTIMENT: Risk appetite, safe-haven flows, VIX movements
  • COMMODITY: Gold-specific news, mining sector, ETF flows

Filtering Options

Filter news by:

  • All articles
  • Bullish (positive sentiment)
  • Bearish (negative sentiment)
  • Neutral articles

Auto-Refresh

Enable automatic refresh every 5 minutes to stay current with breaking news.

Alert System

Alert Types

PRICE_SPIKE

  • Triggered when price increases ≥ 1% (default threshold)
  • Severity: HIGH if ≥ 2%, MEDIUM if ≥ 1%

PRICE_DROP

  • Triggered when price decreases ≥ 1%
  • Severity: HIGH if ≤ -2%, MEDIUM if ≥ -1%

NEWS_BREAKING

  • High-impact news articles (impact_on_gold = HIGH)
  • Severity: CRITICAL
  • Includes link to original article

SUPPORT_BREACH

  • Price breaks below identified support level
  • Severity: HIGH
  • Action required: Consider position adjustment

RESISTANCE_BREACH

  • Price breaks above identified resistance level
  • Severity: HIGH
  • Action required: Potential breakout trade

HIGH_VOLATILITY

  • Current price range exceeds 2x average range
  • Severity: MEDIUM
  • Indicates increased market uncertainty

ECONOMIC_EVENT

  • Upcoming scheduled events (Fed meetings, CPI releases, etc.)
  • Severity varies by importance

Severity Levels

  • CRITICAL: Immediate attention required, major market event
  • HIGH: Significant event requiring awareness
  • MEDIUM: Notable event worth monitoring
  • LOW: Informational alert

API Keys & Configuration

Required API Keys

Alpha Vantage (Required)

OpenRouter (Required)

Optional API Keys

Finnhub (Optional - Enhanced News)

  • Provides: Additional financial news coverage
  • Free tier: 60 calls/minute
  • Get key: https://finnhub.io/register
  • Adds more news sources and broader coverage

NewsAPI (Reserved for future)

  • Currently not implemented
  • Placeholder for additional news source

Environment Configuration

Add to backend/.env:

# Required
ALPHA_VANTAGE_API_KEY=your_key_here
OPENROUTER_API_KEY=your_key_here

# Optional (for more news coverage)
FINNHUB_API_KEY=your_key_here
NEWS_API_KEY=

API Endpoints

News Feed

GET /api/news/feed?limit=50

Returns:

  • Array of news articles
  • Bullish/bearish/neutral counts
  • Overall market sentiment
  • Average sentiment score

Alerts

GET /api/news/alerts?limit=50

Returns:

  • Recent alerts
  • Critical alert count
  • Unread alert count

Economic Calendar

GET /api/news/economic-calendar

Returns:

  • Upcoming economic events
  • High-impact event count

Clear Alerts

POST /api/news/alerts/clear

Removes alerts older than 24 hours.

News Relevance Scoring

The system uses a sophisticated algorithm to score news relevance:

High Relevance Keywords (0.4 points each)

  • gold, xau, precious metals, bullion, gold price
  • gold market, gold trading, gold miners, gold etf

Medium Relevance Keywords (0.2 points each)

  • federal reserve, fed, inflation, interest rates
  • dollar, usd, monetary policy, central bank
  • jerome powell, treasury, bonds

Context Relevance Keywords (0.1 points each)

  • geopolitics, war, sanctions, recession
  • crisis, safe haven, risk off, uncertainty

Minimum Threshold: Articles with relevance score < 0.3 are filtered out

Sentiment Analysis Details

Uses TextBlob for natural language processing:

Polarity Score Calculation:

  • Range: -1.0 (most negative) to +1.0 (most positive)
  • Analyzes: Title + Description + Summary

Classification:

  • POSITIVE: polarity > 0.1 → Bullish for gold
  • NEGATIVE: polarity < -0.1 → Bearish for gold
  • NEUTRAL: -0.1 ≤ polarity ≤ 0.1

Note: For gold as a safe-haven asset, negative news (recession, crisis) often = positive for gold prices.

Alert Configuration

Customizable Thresholds

In backend/app/config.py:

# Price change threshold for alerts (percentage)
PRICE_ALERT_THRESHOLD: float = 1.0

# News refresh interval (seconds)
NEWS_REFRESH_INTERVAL: int = 300  # 5 minutes

Support/Resistance Levels

Set via AI analysis or manually:

from app.services.alert_service import alert_service

alert_service.set_support_resistance(
    support=[4000, 3950, 3900],
    resistance=[4100, 4150, 4200]
)

News-Price Correlation

The correlation analyzer:

  1. Captures news timestamp
  2. Finds price before news (within 1 hour)
  3. Finds price after news (within 1 hour)
  4. Calculates price change
  5. Determines correlation strength:
    • STRONG: |change| > 1.0%
    • MODERATE: |change| > 0.5%
    • WEAK: |change| ≤ 0.5%

Best Practices

For Scalpers (M1-M15 timeframes)

  • Enable auto-refresh on news feed
  • Filter for HIGH impact news only
  • Watch for PRICE_SPIKE/DROP alerts
  • Monitor volatility alerts during news releases

For Swing Traders (H4-D1 timeframes)

  • Review news feed 2-3x daily
  • Focus on MONETARY_POLICY and GEOPOLITICS categories
  • Monitor support/resistance breach alerts
  • Track upcoming economic events

Risk Management

  • Reduce position size before high-impact events
  • Set wider stops during high volatility periods
  • Avoid trading during major news releases unless experienced
  • Use correlation analysis to understand typical price reactions

Troubleshooting

"No news articles found"

  • Check Alpha Vantage API key is valid
  • Verify API hasn't hit daily limit (500 calls)
  • Check internet connection
  • Review backend logs for errors

"Alerts not appearing"

  • Ensure backend is running
  • Check price data is updating
  • Verify support/resistance levels are set (via AI analysis)
  • Check browser console for errors

"News sentiment seems incorrect"

  • TextBlob uses general sentiment (not gold-specific)
  • Negative news can be positive for gold (safe haven)
  • Use category + impact rating for better context
  • Review article manually if sentiment seems wrong

API Rate Limits

Alpha Vantage

  • Free tier: 500 calls/day, 5 calls/minute
  • News endpoint: Counts as 1 call
  • Tip: Cache news for 5 minutes to reduce calls

Finnhub (if configured)

  • Free tier: 60 calls/minute
  • News endpoint: 1 call
  • Generous limits for development

OpenRouter

  • No rate limits (reasonable use)
  • Pay-per-use: ~$0.01-0.05 per AI analysis
  • Very affordable for news analysis

Future Enhancements

  • Real-time WebSocket news stream
  • Custom alert rules builder
  • Email/SMS alert notifications
  • Historical news backtesting
  • Machine learning sentiment models
  • Economic calendar integration (Forex Factory, Investing.com)
  • News event impact prediction
  • Social media sentiment (Twitter/X gold mentions)

Example Workflow

Morning Routine

  1. Open simulator
  2. Review overnight news (filter: ALL)
  3. Check critical alerts
  4. Review economic calendar for today
  5. Note high-impact events scheduled

During Trading Session

  1. Monitor alerts panel for price movements
  2. Check news feed every 30-60 minutes
  3. Watch for breaking news notifications
  4. Adjust positions before scheduled events

End of Day

  1. Review news-price correlations
  2. Analyze which news moved the market
  3. Clear old alerts
  4. Note patterns for future trading

Remember: News and alerts are decision support tools. Always verify information and maintain your own trading discipline. The simulator is for educational purposes only.

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