TLDR;
This video explains a simple trading strategy based on a single candle that appears every day at 9:30 a.m. EST on the 5-minute chart. This candle provides a trading range, direction, and entry/exit points, simplifying trading and improving consistency. The strategy involves identifying a "battlefield" range, waiting for explosive direction confirmed by a fair value gap on the 1-minute chart, and then entering on an engulfing confirmation after a retracement to the fair value gap.
- Identifies key trading levels and direction using a single candle.
- Provides a clear, repeatable strategy for entries, targets, and stop-losses.
- Emphasizes the importance of patience and avoiding trades within the defined range.
Introduction [0:00]
The video introduces a trading strategy centered around a single candle that appears daily, which provides all the necessary information for profitable trading in any market. This candle helps traders identify winning trades, make accurate entries, and avoid losses, simplifying the trading process. By mastering this strategy, traders can achieve consistent profitability with minimal time investment.
Trading Range [1:53]
The 5-minute candle that prints at 9:30 a.m. Eastern time defines the trading range, indicating where to trade and, more importantly, where not to trade. The high and low of this candle create a "battlefield," with strategic areas for positioning and areas to avoid. Trading within this range is discouraged to prevent losses in choppy markets. This range is objective, appearing at the same time every day, eliminating subjective analysis and confusion.
Explosive Direction [4:59]
When the market reaches one of the levels defined by the initial candle, traders should switch to the 1-minute chart to look for "explosive direction." This is identified by a fair value gap, which consists of three candles moving with violent force, leaving a gap between the wicks of the first and third candles. This pattern indicates whether buyers or sellers are in control, providing insight into the likely direction of the market.
Perfect Entry Timing [6:59]
After identifying a fair value gap, traders should wait for a retracement back to the gap. Instead of entering immediately, they should look for an engulfing confirmation at the fair value gap. This engulfing signal indicates that the bounce is real and provides a better entry point with a smaller risk compared to the potential reward. Waiting for this confirmation can significantly improve the win rate of the strategy.
Live Examples [9:39]
The video provides two live trading examples to illustrate the strategy in action. The first example from August 29th shows the market moving aggressively outside the range, creating a fair value gap to the downside. After a retracement back into the level and an engulfing confirmation, a short position is entered with a 3:1 risk-to-reward ratio, resulting in a profit of $2,040 in 21 minutes. The second example demonstrates a similar process, with a fair value gap and engulfing leading to a $1,300 profit in just one minute.
Conclusion [13:23]
The video concludes by emphasizing that while the strategy provides all the necessary tools for profitable trading, consistent execution is key. The presenter offers mentorship to guide traders through each trade and market condition, helping them avoid common mistakes and stay on track. He also provides links to a free community and a mentorship application for those seeking more personalized guidance.
