Jesse Rogers walks through the first candle rule, an intraday method that uses the opening 30-minute candle to set entry and stop levels on a 5-minute chart. Trade the break of that candle's high or low after a retracement, risk to the lowest candle body, and target a fixed 2:1 reward.
I only use one candle to trade every single day. I mean, it is so stupid simple. And I mean that in the best way possible because after nine years in the markets, what I've learned is that stupid simple always wins. The more you try to force complexity, the more money you're going to lose. So here's what made everything finally click for me. It's called the first candle rule and it uses the first 30 minute candle of the day to give you your entire trade. As in where to enter, where to put your stop and what to target. Here, here's how it works. Each day after the 9:30am Open, we mark out the high and the low of the first 30 minute candle because the first 30 minutes of the day is the highest volume of the entire session. Then we drop to the five minute chart and we wait for the price to either trade into the high or the low. And after that, in order to get confirmation to enter a trade, we need to see a fair value gap back into the range. And that's our confirmation to enter because this tells us that the market is moving with a lot of force out after reacting to liquidity. From the first 30 minutes of the day, our stop goes at the lowest candle bodies on the five minute chart and we target a fixed two to one risk to reward. No overthinking, no complicating, just one stupid simple move repeated every single day. To finally become a profitable trader, you need to save this post. That way, when it comes time to trade, you have this strategy ready.
