1. Are the markets in uptrend or downtrend?
Determined by 10 day MA on daily chart. (Currently in downtrend)
2. What is strong?
Strong stocks are, obviously, going up, even on down days. Is the stock over the 10 day MA? Good, it's a potential long.
Did it recently break the 15 min TL? Good - that breakout level is the first stop. However, if it gapped up and then broke through, the stop is lowered to the first print of the gap. (So it will sometimes be below the b/o level of the 15 min period TL.
3. Raise stops as it works. Each triple touch or double bottom marks a support area and becomes the new stop. Take profits if it rips into old resistance. But no matter what, the max. loss is always defined.
You never average down. You could average up as a support level is defined and breaks above 5 min. TL.