This week saw the introduction of a useful service by DailyFX, the market and analysis website of FXCM Inc (NYSE:FXCM). The novel solution is called High-Frequency Trading Insights on Markets and is available for free on DailyFX’s website.
The main purpose of the tool is to enable traders to assess whether a current market move for a given instrument will continue or not. Unlike other indicators, however, this tool uses institutional level data, which was previously available only to more sophisticated traders.
The first thing one notices when visiting the designated page for High-Frequency Trading Insights on Markets is MARKET INTELLIGENCE ALERTS. This is a live price chart highlighting quick bullish or bearish price moves.
Right below it is the MARKET INSIGHTS DASHBOARD. This is a set of real-time indicators of current market conditions, including:
- Retail Volume: real-time trading volume levels;
- Provided Liquidity: current level of liquidity from the price providers;
- Supply/Demand: the balance of bid and ask liquidity;
- Trading Activity: summary of recent trading activity.
Then comes the most interesting part of the service – its core, or the GixTM – an exclusive measurement calculated when price spikes occur, to measure the historical likelihood that price will keep moving. This index is based on five main factors: Price Action, Retail Trading Volume, Institutional Liquidity, Institutional Supply/Demand, and Retail Trader Positioning.
The Gix shows a rating of 1-5 stars to indicate how historically likely it has been for price to continue in one direction or another.
The service can be used by any visitor of DailyFX’s website, but the developers of the tool believe that it will be most helpful to higher-frequency traders and scalpers.
To view a detailed intro into the service, click here.
To check out High-Frequency Trading Insights on Markets, click here.