Jesse Rogers shows a three-step day-trading setup using the 9:30–9:35am five-minute candle as the day's range. Watch for a fair value gap on the one-minute chart, enter on a retest with an engulfing candle, and target 3:1 risk-to-reward. Cuts through range chop.
This one candle solves the biggest problems in trading. You see, most losing trades happen in the middle of ranges. Traders get chopped up, stopped out and frustrated. But this one candle solves that problem completely. It shows you exactly where to trade and where not to trade. Let me explain. And it does this in three simple steps. First, mark the high and the low of the 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. Step two, drop down to the one minute chart and wait for a break. Now, to confirm a real break, we need a 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 third candles wicks. And once this happens, we move to step three, which is our trade entry. Because once the fair value gap has formed through our first candle, you want to wait for a retest into the fair value gap and then an engulfing to confirm your trade. This means when the market taps back into the fair value gap, the next candle completely engulfs its body. 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.
