Jesse Rogers breaks down a simple intraday strategy: mark the high and low of the first 5-minute candle at market open, drop to a 1-minute chart to find a fair value gap, enter after it's retested and confirmed by an engulfing candle, and use a 3:1 reward-to-risk ratio. The key is following the rules without emotion.
Most traders fail because they're looking at too much. But after trading for nine years, I realized something that changed everything. You only need one candle to trade every single day. And I'm more profitable now than I ever was when I use complicated strategies. All because of this simple approach. Here's how it works in three steps. Step number one. Mark the high and and the low of the first five minute candle that forms between 9:30 and 9:35am Eastern Standard Time. These are the only two levels you need to find consistent winning trades. And then you're going to drop down to the 1 minute chart and wait for a fair value gap to break through one of the two levels. A fair value gap is a three candle pattern where the candle in the middle moves with such explosive force that it leaves a gap between the first and the third candles. Wick and once you see this gap, you're almost ready to enter the trade. But we need one more confirmation and this will help us filter out the losing trades. Once the market retests this fair value gap, we want to see a simple candlestick pattern to confirm that we have a good breakout. And that pattern is an engulfing candle. And once this happens, now you're good to enter the trade. Place your stop at the first candle of the fair value gap. Target is a fixed three to one risk to reward. This means that on your winning trades you make three times as much as you lose when you're wrong. And yes, the strategy is stupid simple, but it only works when you stay consistent and let the strategy make the decisions for you. Now save this so you can study it when you trade.
