I've posted this before, but due to the damn hackers my post is lost

Basically I'm attempting to understand the way the market operates correctly after the news release and also the way are the price levels established. I'll be looking at what's happening from the point of view of a centralised market place, however I would imagine Currency Market operates in a similar way. It'd be fantastic, if anyone can clear the similarities/difference up.

Anyway, let me illue with a hypothetical example.

This is how the market looks before the launch:

Price Volume (Billions)

1.34 10
1.33 20
1.32 30
1.31 40
1.30 30
1.29 20
1.28 10

The news comes out positive, and 80 billion worth of buy orders comes in, everything up to 1.33 gets consumed and thus that is the next tick. Another batch of orders comes from and the activity persists. Also MM/Trades pull a lot of liquidity making motions that are big possible.

Waiting to the wise remarks

Best regards,