Jesse Rogers walks through the first candle rule, an intraday trading method that uses the first 5-minute candle at market open to set levels, then waits for a fair value gap, retest, and engulfing confirmation on the 1-minute chart before entering with a 3:1 risk-reward ratio.
I trade one candle every day at the same time. It's boring, simple and it consistently gives me winning trades like this, this and this. And if you can't seem to make trading work, give this a shot. 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 one minute chart and 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. And most importantly, save this video so you can study it again and again.
