Jesse Rogers explains the first candle rule: use the first 30-minute candle after market open to set the day's high and low, then switch to a 5-minute chart and wait for price to hit those levels. Entry needs a fair value gap back into the range, stop-loss goes at the lowest 5-minute candle bodies, and target is a fixed 2:1 reward-to-risk ratio.
There is one candle I trade off of every single day. It is so stupid simple, I can count on it more than anything I've ever traded. And chances are if you're not consistent, then this is what you're missing. You see, your strategy, it's just not stupid simple enough. But that changes right now. This is called the first candle rule. And all you need in order to execute is the first 30 minute candle of the day. Here's how it works. Each day after the 9:30am Open, we mark out the high and the low of the first 30 minute candle. Because the first 30 minutes of the day is the highest volume of the entire session. Then we drop to the five minute chart and we wait for the price to either trade into the high or the low. And after that, in order to get confirmation to enter a trade, we need to see a fair value gap back into the range. And that's our confirmation to enter. Because this tells us that the market is moving with a lot of force. After reacting to liquidity from the first 30 minutes of the day, our stop goes at the lowest candle bodies on the five minute chart and we target a fixed two to one risk to reward. No overthinking, no complicating. Just one stupid simple move repeated every single day. To finally become a profitable trader, you need to save this post. That way, when it comes time to trade, you have this strategy ready.
