Does technical analysis precede the news? Who truly moves the market—the chart and price action, or the news itself?
I think there's a lot of factors that together move the market and sometimes there's one that is usually not mentioned which is market sentiments. There are a lot of people observing the charts on a daily, and because many people see the movement of the candle sticks, they understand what happens next and the act in that manner this is why immediately after a certain pattern is formed the market reacts in a certain way because many traders see it and based on market sentiments act in a manner to obey the rule and principle just formed. I think it is only a few times that this certain principles or patterns and candle sticks on the charts are not obeyed somehow the candle stick patterns correlate with the news because people are also sentimental towards the news or react in a certain way depending on the kind of news they receive.