Map of Naples Tourist on This offered an attractive short into the 50-level magnet. There were basically two ways to exit this short manually: either 226 Chapter 8 Recap Part I rake in the profits for about 1 5 pip in the 50-level (resistance exit in the bottom of a range) , or exit the position above bar 7 (reversal exit on the break of a small W-pattern middle-part) . There is no escaping the fact that a reversal exit always harbors a certain potential for a trap; it is after all a break against the earlier dominant pressure. Depending on the situation, you may at times decide to sit it out in the hopes of a false break turnaround. But before going this route, do realize also that declining a reversal exit can backfire with equal prowess; so this is best applied only when the adverse break appears relatively benign, which is a personal call. If out on the trade, not very prudent would have been to reposition the short below bar 8, so as to trade the little box break for failure. Apart from the fact that the market wasn’t trending bearishly enough to warrant such aggression, the break of the box had not yet been proven false at that point. Map of Naples Tourist 2016.
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