19 Sep 2011

Twitter being used to predict market moves

10:58 am on 19 September 2011

Scientists in the United States are using Twitter to predict movements on Wall Street.

Indiana University informatics and computing professor Johan Bollen has designed a special software which analyses millions of tweets for specific words and phrases, to gauge movements in the public's mood.

He says the changes seem to predict future movements in the financial markets.

Professor Bollen says the forecasts are right almost 90% of the time and a hedge fund in London is already using the data for trading.