Jesse Rogers trades the first 5-minute candle at market open, marking the high and low, then switches to a 1-minute chart to wait for a breakout, fair value gap, and retest. He enters on an engulfing candle with a 3:1 risk-to-reward ratio and says he made over $100,000 in one month using this setup.
I trade one candle every day at the same time. And this boring strategy made me over $100,000 in a single month. Because the truth is, the more that you complicate your trading, the more money that you're going to lose. But the more that you simplify, the more you'll make. So here is my stupid, simple approach. This is called the first candle rule and it's the only trading strategy you'll ever need. Every morning at 9:30am, draw two lines on your chart. The high and the low of the first five minute candle of the trading day. Next, switch to your 1 minute chart and wait. Price will either go up through the high or down through the low. And once it breaks one of these levels, don't just rush in. We want to wait for two steps. Number one, we need a fair value gap to appear. That's when there's a strong candle that leaves a gap between the wicks of the candle before it and the one after it. Now if it doesn't form, then you have no trade. Step two is we want to wait for a retest into the fair value gap. And once we get this, we look for one simple confirmation to enter the trade, which is our engulfing candle. As soon as we get this, we enter the trade and place our stops one tick beyond the retest candle and target a fixed three to one risk to reward. And last but not least, sit back and let the market do its job. Don't get greedy or scared and take profits too early. If you want me to walk you through this step by step on my upcoming live class, comment the word class and I'll send you a free ticket before they're gone.
