Trading the News With Order Flow
Order flow during major economic news can be difficult to interpret.
When important US economic data is released, futures can move rapidly as expectations change and participants adjust their positions.
During these moments, the DOM may change quickly, displayed liquidity can disappear, and slippage can increase.
A footprint chart may show large aggressive buying or selling, but that doesn't guarantee the move will continue.
Before trading major releases, I consider:
Whether my strategy has been tested under news conditions.
Whether spreads and slippage could change my risk.
Whether my broker or prop firm has specific news-trading rules.
Whether staying flat is the better decision.
Sometimes the smartest trade is waiting until the market becomes easier to read.