Heya faxed, hows it going? I haven't been practicing the F's a whole lot, mostly Forex and doing longer swing trades. However, the way I've been mitigating headfakes is looking at the last pullback as a support or resistance line. So if the price ran up and consolidated into a pullback, it hit or formed a resistance line. I then expect the price to jog sideways or slightly backwards at that point. Once it continues past that point, then odds are it isn't a headfake, but a continuation of price.
It's not always easy to tell if it is continuing, so I'm not real good at this yet. However, I've noticed that the strong moves tend to break the resistance, pullback to touch it as support, and then start moving.
Bet on the jockey, not the horse.
