Watched Repository in Dm 2

I am just trying to understand the functionality of watched repository.

I declare a watched directory and start my Dm server .When I update my bundle in watched repository what will be the expected behavior

1. Will the already resolved bundles in pick up directory refresh ?

2. Only new bundles in pickup will pick up teh refreshed packges ?

Repositories are passive in that changes to them do not provoke any action by dm Server. A watched repository periodically scans for files and updates its index which can affect subsequent deployment operations (whether via the pickup directory, admin console, or JMX).