Jesse Rogers walks through a day-trading setup that uses the first 5-minute candle to set daily levels, then waits for a fair value gap break and engulfing candle to enter. He claims over $100,000 in one month and says the method is mechanical and repeatable.
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. Every day between 9:30 and 9:35am EST, the first five minute candle forms with more volume than any other five period of the entire session. We mark its high and low because the high shows where maximum selling pressure stepped in and the low shows were maximum buying pressure defended. Those become our two levels for the day. And then we drop to the 1 minute chart and wait for a fair value gap to break through one of these levels. Now, a fair value gap is when there is a gap between the candles wicks it shows who is really in control, whether it's buyers or sellers. This way we know that we're on the right side of the market. Once the gap forms, we just need one more step to confirm our trade. We want to wait for a retest of the fair value gap followed by an engulfing candle. This confirms that the breakout is valid and the market will likely continue. And at this time we're good to enter the trade, place our stops one tick beyond the retest candle and then target a fixed 3 to 1 risk to reward. Simple, mechanical and repeatable. Now save this video so you can study it again and again.
