A day-trading setup that uses the first 5-minute candle to mark the day's range, then waits on the 1-minute chart for a fair value gap and retest. The presenter claims over $100,000 profit in a month using this three-step mechanical approach.
I trade one candle every day. And I know it sounds crazy, but I ignore everything else because this one candle made me more money than anything that I've tested in my nine year career. In fact, it made me over $100,000 in a single month. But enough said. Here is my boring but profitable approach in three simple steps. First, mark the high and the low of the first five minute candle that forms between 9:30 and and 9:35am Eastern Standard Time. These two levels become your entire trading range for the day. And for step two, drop down to the one minute chart and wait for a break. Now to confirm a real break, we need a very specific type of behavior. And no, it is not just a candle closure and it's definitely not just a wick. Now what we're looking for is a fair value gap because this shows us whether buyers or sellers are in control. A fair value gap is a three candle pattern where the middle candle moves with such explosive force that it leaves a gap between the first and the third candles Wicks. And once this happens, we move to step number three, which is our trade entry. Because once the fair value gap has formed through our first candle for this type of entry, you want to wait for a retest into the fair value gap and then an engulfing to confirm your trade. This just means the candle that traded back into the fair value gap gets engulfed by candles moving in the same direction as the breakout. And after this, we enter the trade with stops under the retest candle and we target a fixed 3 to 1 risk to reward. This means that on your winning trades you'll make three times as much as you lose on the losers. Simple, mechanical and repeatable. Now save this video so you can study it again and again.
