I just wanted to post some examples of headfakes I was able to spot. Normally these setup look like great entries to me, but my stochastics were giving me mixed signals so I stayed away. The one chart that did give me a good buy signal was the U/J trade and if I had the patience to stick with the trade it would have gone into profit 90 minutes later.
One other rule I use lightly when thinking about entering a trade is I want the size of the candles to be at a minimum 2x (preferably 3x) the size of my spread. This is also one of the ways I gauge a lazy market. If the candles forming are less than 2x my spread from top wick to bottom wick I will not enter a trade. I figure if the previous candles are big enough the market has enough volume/volitility to get me in and out of a trade with positive pips quickly.
Anyone else have any rules they follow loosely like this?
PS: The missing candles in the U/J chart are Doji's that for some reason don't show on my black background.