Bill is correct. The only thing I would change is to close the bleed valve BEFORE the stream stops flowing to prevent any air from flowing back into the caliper.
This does require 2 people to do the job.
A power bleeder should allow you to do the job by yourself. YOu have to make sure your not allowing the power bleeder to get air in it. and you bleed from the farthest to the closest to the master cylinder.
To manually do it, I do the following with my Son, Daughter or Wife I haven't been able to teach the doq how to do this.
I call "press"
He/She/Goddess/Dog still won't do it, presses the pedal.
I open the bleed screw and then close it before the fluid stops.
I say "cycle"
The "operator" releases the pedal and then presses and holds the pedal.
I then open and close the bleed screw as above.
The pedal will move down as you alow the fluid to come out.
After a couple of cyles of this check the fluid level in the reservoir
Check it carefully the rear reservoir is hard to see.
I do the bleeding untill all dirt and air is gone.
1970 220D, owned 1980-1990
1980 240D, owned 1990-1992
1982 300TD, owned 1992-1993
1986 300SDL, owned 1993-2004
1999 E300, owned 1999-2003
1982 300TD, 213,880mi, owned since Nov 18, 1991- Aug 4, 2010 SOLD
1988 560SL, 100,000mi, owned since 1995
1965 Mustang Fastback Mileage Unknown(My sons)
1983 240D, 176,000mi (My daughers) owned since 2004
2007 Honda Accord EX-L I4 auto, the new daily driver
1985 300D 264,000mi Son's new daily driver.(sold)
2008 Hyundai Tiberon. Daughters new car