Trading for me is all about the metagame.
My aim while looking at price action is NOT to find patterns in the traditional manner, but rather to look at that price information from the perspective of the other traders.
What are they thinking?
Where are they trading?
What happens if they're wrong?
It's orderflow that moves price. And if you can find the times and places on a chart where enough other traders are forced to act (usually where they know they're wrong) then you've found a source of orderflow that may just offer trade opportunity.
Let's look at a recent example (market and timeframe removed to avoid the usual question, "Does this work in my market and timeframe?". Focus on the concept. It's applicable to all markets and all timeframes!) 🙂
What doesn't happen… is important information.
And that can, in the right context, provide nice trade opportunity in the opposite direction.
In this case a shallow pullback entry short and a good start to the week.