A Head-Fake Trade looks like it's going to move in one direction, but then reverses course and goes in the opposite direction. Head-fake trades occur most frequently at key breakout points, such as major support or resistance levels, or closely watched moving averages.Why do traders fall for head-fakes?We think there are a few reasons. First, when prices are moving quickly, it's easy to get caught up in the momentum and forget to take a step back and assess the bigger picture. Second, many traders rely too heavily on technical indicators that can give false signals at key turning points in the market. And finally, we're all human beings with emotions like fear and greed that can cloud our judgement when trading.If you find yourself getting caught up in head-fakes trades more often than you'd like, here are a few things you can do to avoid them: first of all, slow down and take a deep breath before making any decisions; second of all , don't rely too heavily on technical indicators - instead , focus on price action; thirdly , try to remain calm and objective when making trading decisions . Following these simple tips should help you steer clear of those pesky head-fake trades!
