Re: Who truly moves the market— price action, or the news itself
Does technical analysis precede the news? Who truly moves the market—the chart and price action, or the news itself?
I did some digging, and I hope you find the answer in this post.
Some of you may already know Dow Theory’s First Rule:
This is the essence of Dow’s first rule—price action is king.
News, reports, and predictions? They’re just late reflections of what’s already unfolding on the chart. Price moves first, and the news comes later to justify it—not the other way around.
Let’s put this theory to the test.
I conducted a simple analysis of crypto charts that crashed due to news events. Here are the prime examples
Two days before the crash, a Head & Shoulders pattern had already formed.
Any seasoned technical analyst would’ve opened a short position right before the collapse.
The chart had already printed a descending triangle—a textbook bearish formation.
Any technical trader worth their salt would have spotted it and shorted FTT before the collapse.
Not one, but two bearish patterns showed up:
A rising wedge (bearish)
Another Head & Shoulders formation
The Common Thread?
These crashes were predictable—not the entire meltdown, but at least the bearish sentiment and downward momentum.
Anyone who lost money might have saved their capital—or even profited—if they had technical knowledge.
What do you think?
The obvious thing is that you cannot separate price action and the news which is fundamental analysis from each other. Both price action and the news work together and there is no way we can separate the two from each other. If you want to trade the crypto market and make money from it, you will have to understand the importance of the two so that you can make money from the market. Crypto trading is not segregated from each other especially when it comes to skill and techniques to make money in the market. I did some digging, and I hope you find the answer in this post.
Some of you may already know Dow Theory’s First Rule:
This is the essence of Dow’s first rule—price action is king.
News, reports, and predictions? They’re just late reflections of what’s already unfolding on the chart. Price moves first, and the news comes later to justify it—not the other way around.
Let’s put this theory to the test.
I conducted a simple analysis of crypto charts that crashed due to news events. Here are the prime examples
Two days before the crash, a Head & Shoulders pattern had already formed.
Any seasoned technical analyst would’ve opened a short position right before the collapse.
The chart had already printed a descending triangle—a textbook bearish formation.
Any technical trader worth their salt would have spotted it and shorted FTT before the collapse.
Not one, but two bearish patterns showed up:
A rising wedge (bearish)
Another Head & Shoulders formation
The Common Thread?
These crashes were predictable—not the entire meltdown, but at least the bearish sentiment and downward momentum.
Anyone who lost money might have saved their capital—or even profited—if they had technical knowledge.
What do you think?
Any trader that want to really make money from the market with a good analysis must understand how to trade the market especially mixing the two strategies together to make money from the market.