Why the second move after news can be cleaner than the first

[Amanhasnoname]

After the first violent reaction, the market often settles into a more orderly direction. Spreads narrow, liquidity returns, and the larger participants who waited for clarity start to act.

That second move is usually slower and easier to read. Price pulls back toward the initial spike, tests a level, and either resumes or fails. Entries on that retest carry defined risk and fill at reasonable spreads.

There is a downside. Plenty of the move may already be done, and the retest can fail to materialise at all. Waiting too long means missing the whole thing.

A rule of thumb many scalpers use is waiting for the spread to return to within about 1.5 times normal, then looking for a pullback with decreasing tick activity. The setup is simple, and it avoids the chaotic first seconds.

It also pairs well with a hard time limit. If no clean entry shows within 10 to 15 minutes, the opportunity is probably gone.

Is the first spike traded, or does the retest get all the attention?