After a data release, price usually makes a first move, then pulls back, then either continues or reverses. Traders split into two camps: those who trade the initial reaction, and those who wait for the pullback (the "reoffer").
First reaction:
- Pros: catches the biggest part of the move when the surprise is large.
- Cons: wide spreads, slippage, false starts. Requires speed most retail setups don't have.
Waiting for the reoffer:
- Pros: spreads normalised, direction clearer, better risk definition (stop beyond the pullback).
- Cons: sometimes there's no pullback. Strong surprises run without looking back.
A practical hybrid:
1. Don't trade the first 30–60 seconds.
2. Mark the high and low of the first minute.
3. If price pulls back 30–50% of that move and holds, enter in the original direction.
4. If it pulls back more than 70%, the move is likely failing. Either stay out or consider the reverse.
The reoffer approach is less exciting but more repeatable for people without institutional speed.
Which do you trade? Has your answer changed over time?
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First reaction or the reoffer: which one to trade after news?
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FXS London Scalper
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First reaction or the reoffer: which one to trade after news?
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Shadow Trader
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Re: First reaction or the reoffer: which one to trade after news?
The first reaction to news is a reflex. The second is a decision. Those are different markets.
After the initial burst, which can last from seconds to a couple of minutes, liquidity starts coming back, spreads narrow, and participants who needed time to read the details start acting. Price often retraces part of the first move, tests where the spike began, and then either holds or breaks. That retest is where structure becomes readable again.
The attraction is practical. Spreads are tighter than at the release, slippage is lower, and a stop can sit beyond an actual swing level instead of in the middle of a vacuum. The cost is a smaller slice of the move, since the fastest portion is already gone.
A few signs the second reaction is worth watching: price returns to the origin of the spike and fails to push back through it, the pullback happens on shrinking range rather than expanding range, and the spread has settled close to its normal level. When those are missing, the market may still be in its first phase, and patience is the trade.
It also removes the pressure of being early. Waiting for the second reaction means accepting that the opening seconds belong to somebody else.
How long do you wait after a release before treating the chart as readable again, and does it differ by pair?
After the initial burst, which can last from seconds to a couple of minutes, liquidity starts coming back, spreads narrow, and participants who needed time to read the details start acting. Price often retraces part of the first move, tests where the spike began, and then either holds or breaks. That retest is where structure becomes readable again.
The attraction is practical. Spreads are tighter than at the release, slippage is lower, and a stop can sit beyond an actual swing level instead of in the middle of a vacuum. The cost is a smaller slice of the move, since the fastest portion is already gone.
A few signs the second reaction is worth watching: price returns to the origin of the spike and fails to push back through it, the pullback happens on shrinking range rather than expanding range, and the spread has settled close to its normal level. When those are missing, the market may still be in its first phase, and patience is the trade.
It also removes the pressure of being early. Waiting for the second reaction means accepting that the opening seconds belong to somebody else.
How long do you wait after a release before treating the chart as readable again, and does it differ by pair?