The Head Fake

False breakout, shakeout, reverse price action of the anticipated price action in price patterns, etc-all of these things are what I've called the head fake and as I always say, they tend to be out best timing indications for moves we are expecting because of 3C underlying action.

Here's an example today in the SPY and GLD

 SPY breaking above local resistance on a neg. divergence (1 min)

 SPY 5 min breaking above local resistance

 SPY on a 15 min chart w/ local resistance and because traders use exact numbers for support and resistance instead of the more appropriate "area", it becomes very easy to set them up for a fall.

Here's GLD, the red arrow is what Technical Analysis has taught traders for nearly a century to expect, if the pattern breaks to the upside, TA teaches to go long because t is a failed pattern. Traders still hold tightly to this antiquated dogma, while Wall Street uses it against them every single day.