Reaction of Thick Treasuries to the ISM Manufacturing Release

This video demonstrates how DOM can be used to measure the impact of a news event or fundamental release.

It is general ‘trading wisdom’ to not trade during news events and fundamental announcements. Although closely watching the price action and the change of liquidity on the DOM can give a reliable picture of what to expect and how to prepare.

In this example (5th February 2018 ISM Manufacturing) you can see that from 1:30 the depth becomes slightly thinner, but after the actual release (2:30) there is a small price swing only and the depth reverts back to normal relatively quickly – within ~1 minute.

Date: 5 February 2018

SierraChart version: v1697

Datafeed: CQG

Last updated: December 13, 2023 at 11:07 am

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