1ST CANDLE
THE ANCHOR
STEP 1: SETUP — DRAW THE FENCE
- At 09:30, do nothing. Let the first 5-minute candle fully print.
- At 09:35, draw horizontal lines at the candle's high and low — that is your fence.
- Check the 15M / 1H for HTF context (prior levels, bias, PMH/PML).
- Stay on the 5M chart for execution.
STEP 2: THE FENCE — STRUCTURE
FENCE HIGH = FIRST-CANDLE HIGH
FENCE LOW = FIRST-CANDLE LOW
STEP 3: ENTRY RULES — BREAK + RETEST
▼ SHORT · BREAK BELOW
Sell the retest of fence low.
TRIGGER
Price breaks below fence low, returns to retest, fails.
ENTRY
After bearish rejection / failed push back in
STOP
↑ above the retest swing high
TP
→ 2R default · runner on HTF
▲ LONG · BREAK ABOVE
Buy the retest of fence high.
TRIGGER
Price breaks above fence high, returns to retest, holds.
ENTRY
After strong reclaim / rejection wick
STOP
↓ below the retest swing low
TP
→ 2R default · runner on HTF
STEP 4: BREAK & RETEST
After 09:35, watch for price to break one side of the fence.
- Do not chase the breakout candle itself.
- Wait for price to RETURN and retest the broken level.
- A valid retest stalls, rejects, then resumes in the breakout direction.
- Look for big wicks, engulfing candles, or a strong reclaim to confirm.
STEP 5: WHEN NOT TO TRADE
✓ IDEAL
- First candle has clear size
- Decisive break of one side
- Orderly retest + clean rejection
- Strong opening-session momentum
✗ AVOID
- Tiny, directionless first candle
- Whipsaw above and below both sides
- Sloppy retest that re-enters the fence
- Past 10:00 — window is closed
STEP 6: RISK MANAGEMENT
Measure, then trade. Stop beyond the retest structure, target 2R. Clean risk/reward or skip it.
STOP
RETEST SWING
TARGET
2R
R:R
2 : 1