Master Plan

The Master Plan is a set of rules that determines when to enter and exit a trade. At
first, it might seem a little complicated, but once you have place a few trades using
the system, you’ll realize it’s really quite simple. The best part about the Master
Plan is that you don’t need to use judgment. The rules are mechanical. Two
obstacles to successful trading are the human emotions of fear and greed. By
following the Master Plan, these emotions will not influence your behavior, nor will
they interfere with your success.
To keep it simple, we’ll first focus on the long trade. The rules for a short trade are
simply the mirror image of the rules for a long trade. An example of a long swing
opportunity is shown below. The price has declined (pulled back) and you are bullish
on the stock.