Natural Language Processing (NLP): An AI field focused on enabling computers to understand and generate human language. In forex, NLP is used to process textual information like financial news, tweets or reports. By analyzing sentiment and content of news, NLP-driven models can gauge market psychology. For instance, sentiment analysis (a subtask of NLP) can assign bullish or bearish scores to market news. These sentiment signals can feed into trading algorithms, helping a forex robot react to news events or shifts in trader sentiment. NLP thus expands trading models beyond numeric data into qualitative insights.

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