Jesse Rogers teaches the first candle rule for intraday trading: mark the high and low of the first five-minute candle at market open, drop to the one-minute chart, enter only when price breaks that range with a confirmed fair value gap, stop at the first candle that closes outside it, and target a 2:1 risk-to-reward ratio.
Your time frames fail you because you're looking at too many. The problem is you're checking the daily chart, the four hour, the 15 minute, trying to align everything perfectly. But here is how you're going to simplify it. First, forget about the higher time frames because quite frankly, you don't need them. Just focus on this one thing. This is called the first candle rule. And all you need in order to trade it is the first five minute candle of the day. Here's how it works. First, mark out the high and the low of the five minute candle that forms between 9:30 and 9:35am 8 Eastern Time. Then drop down to the one minute chart and wait for a break. Now, to confirm a good break, we need a specific type of behavior. And no, it is not a candle closure and it's definitely not just a wick. What we're looking for is a fair value gap. This shows us that the big players are pushing the market and we want to be on the same side of the market as them. Once this happens, we enter our trade input our stop loss at the first candle that closed outside the range. And for your target, you just use a fixed 2 to 1 risk to reward. Now I want you to save this so that you can study the strategy before it comes time to trade.
