Global exchange group Nasdaq OMX plans to launch two new historical data products – Velocity and Forces and Historical Market Pathfinders – on 3 May to give traders insight into pre-trade order activity and market sentiment.
Nasdaq Velocity and Forces measures pre-trade order activity on the Nasdaq Stock Market, the group’s main US equities trading platform, to indicate the intensity and direction of trading interest before activity that results in trades and price movement.
Nasdaq OMX said the product is designed to allow members to track intensity and direction over time, create or modify algorithms and trading strategies and help them perform trend analysis to give traders the insight into the most effective trading times based on average velocity.
Historical Market Pathfinders indicates market sentiment based on the buying and selling patterns of Nasdaq market participants or ‘pathfinders’. As with the Velocity and Forces product, Nasdaq OMX envisions that users could use Historical Market Pathfinders to modify and create algorithms and help predict the most effective trading times based on average activity shown by the product. The firm says the data also enables users to identify when pathfinders are aggressively taking a position over an extended period of time and determine if the direction of the market was due to heavy pathfinder activity.
Upon initial implementation, data dating back to 1 February 2007 will be available for Velocity and Forces and back to 2 January 2009 for Historical Market Pathfinders.