I Only Trade This One Candle Now

The first five minutes of the trading day have more volume than any other 5 minute period of the day. Yet most traders completely ignore this one candle because they're too busy looking at multiple time frames, forcing complexity. And in result, they blow accounts in that process. Meanwhile, this one candle gives you everything that you need to stop doing that. It gives you the exact direction, the entry and the target. Here is how it works. It's called the first candle rule and it gives you the three foundations of any good strategy you can. Your range, as in where to trade, direction, as in which way the market will go, and last but not least, your execution, where to put your entry, stop loss and take profit. Here is how it works. You mark out the high and the low of the first five minute candle that forms between 9:30 and 9:35am EST. And these two levels are all you need to establish your trading range. Then we drop to the 1 minute chart and wait for a fair value gap to break out of this range. This shows us who is really in control of the market and we want to be on the same side as them. Now, usually after an explosive move, the market always pulls back to test the gap. But this pullback is a gift, because once we get a dig into the fair value gap, we start to look for our confirmation. And this comes in the form of an engulfing candle. This confirms that the break is real and the market will likely continue. We enter the trade and place our stop one tick beyond the candle that retested the fair value gap and and we target a fixed 3 to 1 risk to reward. Now save this video so you can study this simple strategy again and again.