Those types of events can often be seen on H12 bars. So much so that I have already one EA that trades the opposite direction of these false moves purely from the H12 price action, but I am now developing a couple of EA's focused on H12 highs & lows which are broken with either oe of the following two conditions (both of which occur regularly):
A break of the H12 high or low by less than a certain number of pips (I am testing variations fro 1 to 5 pips)
A break of the H12 high or low by an M5 thrust bar where the M5 price action in the 30-60 minutes following (again, testing variations), no M5 bar close above the high of an uptrhust bar or the low of a downthrust bar, before lokking for a failed retest
The AU & AJ move in the last hour both give a great example of the 2nd false break type:
AU H12 & M5 charts:
AJ H12 & M5 charts:
Following up on Rick's point I would say the idea is to "think like the big boys" or ask "what would the big boys do" and look for setups that take advantage of their game plan, and not think like the herd of small traders who are the targets of these moves. The big boys are smarter than we are, they have far more resources and access to market data that we don't see. Its a case of if you can't beat them, join them. The telltale signs are often there in various forms, its a case of looking for them, recognising them for what they are, and developing strategies accordingly.
