Jesse Rogers teaches the first candle rule: mark the high and low of the first 5-minute candle after market open at 9:30am, drop to a 1-minute chart, and enter when price breaks those levels with a Fair Value Gap and retest pattern. Target a 3:1 risk-to-reward ratio on every trade.
Your time frames fail you because you're looking at too many. You're checking the daily, the 4 hour and the 15 minute. But real profitable trading doesn't work like that. It's much simpler. And all you need is this one candle. This is called the first candle rule. And all you need to execute it is the first five minute candle of the day. Each day after the 9:30am Open, you're going to wait for the first five minute candle to close. And after that candle closes, you, you mark out the high and the low and then you drop down to the 1 minute chart and wait for the market to break one of these levels. But we need a very specific type of behavior to confirm a break. And no, it is not just a candle closure and most certainly not just a wick. And what we're looking for is a displacement and the pattern we use to confirm this is a fair value gap. Now, fair value gaps are really simple. They're just three candle patterns that are created when the market moves with a lot of force and leaves a gap between the first and the third candles. Wick. Now, once the fair value gap forms, we still need to wait for our confirmation, which is a candle digging and retesting the fair value gap followed by an engulfing candle. Once this engulfing candle closes, we enter the trade and target a fixed 3 to 1 risk to reward. This means that on your winning trades, you're going to make three times as much as you lose on the losing trades. Simple, mechanical and repeatable. Now save this and study it again and again.
