In Forex trading, when studying price action:
It’s not only about what happened, what did not happen is insightful, too
When I look at the charts it is easy to only focus on what happened, but often there is invaluable insights in what did not happen.
Only focusing on what happened may limit my ability to really read what is happening. Here is a quick video that may assist in illustrating my point. Then below is some chart examples.
Here are some price examples from the chart of what happens when I can identify where price does not go.
Understanding the relationship between where price does go and does NOT go will help in placing stops and limits. Trading levels instead of individual bars and time periods will also make me a more patient trader allowing to filter out the noise.