This One Candle Contains More Information

I only use one candle to trade every single day. And it's so stupid simple that most traders completely overlook it. Because after nine years in the markets, what I've learned is that this one candle contains more information than any indicator or complicated strategy ever could. This is called the first candle rule. And all you need to execute it is the first five minute candle of the day. Each day after the 9:30am Open, you're going to wait for the first five minute candle to close and then. And after that candle closes, you mark out the high and the low and then you drop down to the 1 minute chart and wait for the market to break one of these levels. But we need a very specific type of behavior to confirm a break. And no, it is not just a candle closure and most certainly not just a wick. And what we're looking for is a displacement and the pattern we use to confirm this is a fair value gap. Now, fair value gaps are really simple. They're just three candle patterns that are created when the market moves with a lot of force and leaves a gap between the first and the third candles. Wick. Now, once the fair value gap forms, we still need to wait for our confirmation, which is a candle digging and retesting the fair value gap followed by an engulfing candle. Once this engulfing candle closes, we enter the trade and target a fixed 3 to 1 risk to reward. This means that on your winning trades, you're going to make three times as much as you lose on the losing trades. Simple, mechanical and repeatable. Now save this and study it again and again. 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.