I am looking for some suggestions on how to deal with retracements in a trend following setup? Lets assume you're long the market which is trending up in your favor until it reaches a swing high. What do you do next? You could do one of followings (among others): a) take profit immediately. Wait to see if the retracement resumes back to a continuation of the original uptrend after closing above its swing low. Then take a new long position. b) stay long, take the heat through the retracement periods while checking by e.g. Fibonacci levels, etc. for any sign of trend continuation or reversal to continue or exit. Any insight is appreciated. To keep things simple assume you're not using a pyramid or other scaling techniques and simply trading one car.