Movements before News and what does it mean


#1

Why does the market “move” up/down before the news?

For example, if it inches upwards, is it the markets way of saying there is an anticipation that it will move up?

Or is it about compensation. For example, I notice more than not that there is movement in the opposing direction to the outcome. Meaning there is an anticipation that it will move up therefore it needs to allow for room by moving down… I see this happen in the post outcome (only sometime) in movements like gold where it seems to need to “recharge” before it makes it ultimate gains.

I’m reading too much into this, but technically, I don’t see any reason why it should move at all (more than a standard variance) before a news event.


#2

You are correct often a market will move in the opposite direction before the direction it goes after the news (this is why the apex pattern catches the news direction so often). Basically big funds are pulling the price in one direction to increase profits on the news…