What moves the price the most?

Beginner Questions
1

What moves the price the most?

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Orders that demand liquidity… Market orders; the necessity to transact immediately.

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There are some news events on the economic calendar with great potential to move prices quickly and a long way - NFPR’s central bank rate announcements, inflation figures especially.

Sometimes there is no obvious event like that but price suddenly reverses from going up to going down or vice versa. Trend reversals aren’t the most likely thing to happen during a trend but they can come from nowhere and they can move price very quickly in the opposite direction in a very short time - catching a reversal has a low win rate but dramatic gains if you get in and out at the right time.

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Why does an event or news release move price?

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It doesn’t, in itself.

It can be a secondary causative factor, though.

Technically, the only thing that moves prices at all (never mind “the most”) is the depth of market, also called the order book.

As you said above, prices move by orders using liquidity. And only market orders. Limit/pending orders can move prices only when they become market orders, when the price reaches them.

The causation of the mechanism by which orders move prices is imbalances between buying pressure and selling pressure, but that and everything else (like “news” or “supply and demand”) is completely secondary. It’s only orders demanding liquidity that actually move prices.

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Time! Time is what moves money. Events in history unfold in a certain sequence over the years, economic news on the economic calendar unfold in a certain sequence over the month, the working day begins and ends in a certain sequence over the week. Institutions go to sleep and wake up at the same time, every day. Look at the chart and u see time and price. Time is the most precious thing

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it repeat! Monthly chart, daily chart, hourly chart…

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That’s one perspective.

There are others: many modern charts used by professional and other successful traders aren’t time-based at all, such as renko charts, range-bar charts, volume-bar charts, etc.