Professional day traders reverse their positions about 60% of the time when they take losses? Why do they do this? The market should not have technically reached the exit price, which is placed where the intraday market trend may have reversed the short term trend. Consider a market that moves a three-day average range above the opening price then breaks sharply to the downside and posts new intraday lows within the last hour of trading as a trend reversal condition. S&P locals will usually cover and may reverse a 100-point or greater sharp break on the first eight higher up ticks from an intraday bottom.
While you may not be willing or able to trade like an S&P insider, you must still learn to reverse when it is opportunistic to do so. For instance, let's say you decide to go short on a TTE ahead of the breakout of a 1-2-3 high. What if you do get short and prices begin to head higher? Should you reverse? The answer is yes you should. At that point, what you are looking at is a TTE to go long ahead of the b/o of a Ross hook.