Jesse Rogers breaks down a three-step intraday trading method: mark the 9:30-9:35am ET range on a 5-minute chart, switch to 1-minute and wait for a fair value gap (a three-candle pattern), then enter on an engulfing candle after a retest, targeting a 3:1 risk-to-reward ratio.
Trade one candle every day at the same time. This stupid, simple way of trading made me profitable. And it's why I get days like this, this and this consistently. 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 9:35am Eastern Standard Time. These two levels become your entire trading range for the day. So 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. 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 when 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. 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.
