A new tool for traders that will help you to keep track of news sentiment is being developed by Acuity Trading and Dow Jones. The idea is to offer traders visual cues to help them to better understand market trends. It might also help to stimulate trade ideas.
Called Acuity Visual Edge (powered by Dow Jones), it is showcasing some of the ways that news can be used to support your trading decisions. It draws on Dow’s DNA platform, which launched in beta in April.
“News is an incredibly rich source of data and so much opportunity can be derived from news by traders when its value is understood and harnessed in the right way,” says Andrew Lane, CEO of Acuity Trading. “This is why we have focused on creating a tool with Dow Jones that makes its content central to a trader’s research activity and presenting it in ways that traders can make best use of it.”
Many traders are becoming concerned about fake news and rightly questioning the provenance of the news sources that are being plugged into analytics engines. According to Jason Malatesta at Dow Jones, the partnership at Acuity will help to create more confidence on the part of traders that what they are seeing is genuine sentiment.
One of the first firms to offer the new sentiment tool is Infinox Capital, which provides online forex trading services. Robert Berkeley, CEO of Infinox, said:
“Infinox’s customers trade forex in a dynamic, fast-moving and technology-driven market. This partnership…connects our traders to insightful data and true global news, empowering global FX trading.”
More tools of this description are already on the market, with others in development. The Armchair Trader is already aware of some, for example, that track sentiment on Twitter, and are used by major investment banks and commodities trading desks. It will not be long before private traders are being offered some very sophisticated sentiment monitoring tools, as the sheer volume of news is becoming harder for human beings to stay on top of.
How much do you rely on news to inform your trading decisions? Let us know on The Armchair trader forums.