Useless, most likely. Only a computer can properly analyze
the live Order Book anyway, and I don’t know whether OANDA
has any such API to stream the data into code.
I’ve found only one useful and free source, which is
provided by Dukascopy. But, in order to use it, you have to master their
proprietary API… Analyzing the Order Book is nearly impossible, and
does require extremely delicate techniques… but anyway it does
contain near term predictive information…
[EDIT2] A very large operation which was able to pay a few thousand
a month for a Forex exchange, using the FIX API (a huge undertaking)
might be able to do better. The beauty of Dukascopy’s feed is that
we are guaranteed 10 quote levels at all times, on each side of the
market, for each Currency Pair. That is sufficient to determine
market direction, most of the time.
In the last few weeks, I’ve managed to create a VPT (Virtual Pairs Trend)
which merges Currency Analytics with Order Flow and Market Depth Bias
to create what appears to be a “holy grail” type directional indicator
for the 28 Currency Pairs.
That would be an extraordinary claim, requiring extraordinary evidence;
and we’re still evaluating the predictive data
while at the same time developing BOTs which will trade on the
predictive properties of VPT.
We know that Forex Pairs are necessarily driven by the relationship
between the 2 constituent Currency valuations. Therefore, if we
can predict where each of the Currencies is moving; we can predict
where the Pair is bound to move… in real time
Trying to predict where a Pair will move, based only on the pair’s
apparent Price Trend, just isn’t good enough. Something behind
the dynamics is required; and that is based on Order Book behavior…
[EDIT] there is only one further area of R&D which we could calculate;
and that is to estimate Order Flow into each of the 8 Currencies … that would
be a fairly straightforward extension to what we’ve done already, and
perhaps would have predictive value… that remains to be seen… For
now, we have the VPT, based on VCT, where the latter is predictive
of the direction each of the Currencies and, by extension in turn, the
direction of each of the Currency Pairs (VPT).