Rules for the Long Trade

1. Look for an established downtrend that is making consistently lower highs.
2. Note when this down-move makes a retrace on the daily or hourly charts.
3. Make sure that this retrace is at least 38.2% of the original move.
4. Enter long half the position (position No.1) when the price falls to the swing low, making a double bottom.
5. Measure the amplitude of the retrace segment.
6. Add the value of the amplitude to the swing low and make that your ultimate stop.
7. Target 50% of the retrace segment as your profit. If the retrace segment is 100, target 50 points as your profit.
8. If the position moves against you, add the second half of the position (position No.2) at the 50% point between the swing low and the ultimate stop.
9. Keep the stop on both units at the ultimate stop value.
10. If position No.2 moves back to the entry price of position No.1, take profit on position No.2, move the stop to break even and continue holding position No.1 for the initial target.