Jesse Rogers explains the first candle rule, a day-trading method using the 9:30-9:35am ET candle to set entry points and stop losses. Mark the high and low, wait for a confirmed break on the 1-min chart, and target a 2:1 risk-to-reward ratio. Rogers claims over $100,000 in monthly profits from this approach.
I only trade one candle every single day and it is so stupid simple that I regret not learning this sooner because after trading for nine years, I just made over $100,000 in a single month and it was all because of this. This is called the first candle rule and all you need in order to trade it is the first five minute candle of the day. Here's how it works. First, mark out the high and the low of the five minute candle that forms between 9:30 and 9:35am Eastern Time. Then drop down to the one minute chart and wait for a break. Now to confirm a good break, we need a specific type of behavior. And no, it is not a candle closure and it's definitely not just a wick. What we're looking for is a fair value gap. This shows us that the big players are pushing the market and we want to be on the same side of the market as them. Once this happens, we enter our trade and put our stop loss at the first candle that closed outside the range. And for your target, you just use a fixed 2 to 1 risk to reward. Now I want you to save this so that you can study the strategy before it comes time to trade.
