Phosphenes: Pushing on the eye puts indirect pressure on the retina. This stimulation causes the retina to give off the only signal it knows - light sensation. The ring of light caused by the finger is called a phosphene. Repeated pressure on the eye can be harmful, so beware.
Answered 7/20/2012
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Retinal photopsia: This is called a retinal photopsia. When you press on the eye, especially on the extreme outer edges, you are able to put pressure on the retina. This irritates the retina and causing it to discharge electrical impulses. These impulses are interpreted by brain as 'flashes, or a blue dot. You can actually move the dot based on where you touch your eye. In this situation it's a normal phenomenon.
Answered 9/28/2016
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