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.It therefore would not have presented any resistance inthe vicinity of the previous high at B.If you had a stop in the vicinity of B, and it isexceeded, you would have stood a good chance of being hit hard, since there was nothingto stop the market from brisk Movement up. Chapter II Trading With DiNapoli Levels 185CHART 11-7In the situation depicted in Chart 11-7, the protective stop is less likely to be hit, and if itis, your fill is more likely to be reasonable.You not only have some inherent resistancefrom an old market high, but you also have the additional resistance applied from theCOP.This helps the high at B to remain intact.CHART 11-8In the situation depicted in Chart 11-8, Point C is slightly higher than a.618 retracementof the same AB up move.Stop placement should account for the location of the COP andbe placed above the expansion, not just above the preceding high. 186 DiNapoli LevelsIn Chart 11-9 below, we see a variation of the same stop placement criteria shown in theprevious charts.In this case, the up leg is forming a COP, just before the previous high,thereby increasing the chances the previous high will hold.CHART 11-9This phenomenon is played out in the weekly U.S.Bond Chart 11-10, as the twin tower,all-time highs were formed.COP resistance halted a move to new high ground. Chapter 11 Trading With DiNapoli Levels 187CHART 11-10Once you become familiar with DiNapoli Levels, you will see a poetry evolve in marketmoves that is truly fascinating.It's like holding a prism up to white light and seeing thecolors of the entire spectrum emerge. 188 DiNapoli LevelsPRESENTATION:At this point in the book, I think it's fitting to digress a minute and discuss thepresentation of the upcoming market examples.This book has been self-published,because I wanted to control the material.If it is accepted as a useful and competent work,I'll be very pleased.If it is not, it won't be because an editor who knows nothing abouttrading cut the heart out of it.While I have maintained control, such control involvesrisks.Presumably, you're studying this book because you want to find out more about mytrading techniques, or about the specific topics the book deals with.Up to this point, I'vementioned certain products Coast Investment Software (CIS) offers, primarily asfootnotes.That is as it should be.The safe way to handle the upcoming examples would be to keep the presentation generic.The problem with that approach is that it's not the best method to help you learn, nor is itthe best method for me to teach.My work is most efficiently and lucidly taught, if I usethe tools I have developed, so that you can see what I 'm doing The FibNodes"! programis such a tool.The Proportional Divider previously mentioned is another such tool.Theseare both products that CIS offers.You can get around the use of these tools if youchoose to, but my job of teaching the material and your job of learning the material ismade much easier by their inclusion in this book.The FibNodes program allows the user to represent in a tabular format, the Retracement -and Expansion points we've been talking about.It also allows for identifying charactersto be associated with the Nodes it creates so Lineage can be established.This featurebears repeating for two reasons.First, Lineage is a part of the methodology that some ofmy students tend to ignore - to their regret.Second, if you choose to use a spreadsheet toimplement the concept, you need to build a Lineage feature into it.The FibNodesprogram has other features designed for high intensity data management during the tradingexperience and has been designed as a high quality trading tool.The next few pages willexplain the FibNodes program printouts only to the extent that is necessary for you tomost easily understand the way I have developed and use Fibonacci analysis.A list ofthe FibNodes program features can be found in Appendix F
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