Day trade the 5 min reversal Candle

This is a video Brad Reed made on the spot, when a trader asked "what's one of the easiest strategies a trader can use when day trading?"
I hope you find this video helpful. Thank you for watching and enriching lives with us!
​Here is just another example of one I saw today. (4/23/18) on Alcoa.
www.tradingvie...

[@letsgetreal4752]

Great strategy Mr. Brad Reed...

[@RealLifeTrading]

Lori Favela RIGHT?!?

[@mrhulls]

Great video! Do you know what percentage of sucess this strategy has?

[@RealLifeTrading]

50 / 50 :)

[@stevzor]

Hi Brad, So what happens when you are trading the bullish Gap up (Retest Gap on daily), and the first 3-4 5 minute candles don't show bearish? They all launch up bulls taking over? Do you just leave and move onto the next chart looking for this 5 minute setup or do you wait for a pull back and look to get in then? Thanks, Steven

[@RealLifeTrading]

Yep. So, plan to buy a pull back after that happens. :)

[@derekhorsley292]

One thing I have noticed of late is that if there is actual news associated with the gap then it is more reliable - do you look for that or just trade it regardless?

[@RealLifeTrading]

Derek Horsley Most gaps happen from news. ;) Especially earnings.

[@elvisboves4956]

When you are using this strategy, you look at the daily chart of the prior day? and when the market opens next day you use the strategy in the first 5 min? Also, do you wait for the first candle to be formed and then from there you place the trade?

[@RealLifeTrading]

Elvis Boves Yep and yep!

[@24mizzdominican]

Elvis Boves thank you!!! U guys rock

[@RealLifeTrading]

Karen Hernandez My pleasure

[@realloreal]

Can you analyze AMZ? Want to see where I can enter..?

[@RealLifeTrading]

On the list for today's stock review : )

[@anshulmady2211]

Hey Brad, One query What if first candle is not bullish in bearish gap and bearish in bullish gap? What can we do at that point of time? Thanks in advance!!

[@RealLifeTrading]

anshul badjatya Then you wait for that candle to form. It will eventually

[@anshulmady2211]

Real Life Trading Thanks Brad... Love from India!!

[@anshulmady2211]

One more thing Do we wait for retest to happen till 10 ema or Vwap or we can take entry once we find the bullish or bearish candle? Thanks in advance!!

[@RealLifeTrading]

anshul badjatya Watch all of these videos ~ kzbin.info/aero/PLJAEKq6_6huwy9pjmQ-PDuP2377Y0opSp ~ and you’ll see us do it in real time. But, to answer your question, it’s better to wait for the retest Unless it’s a gap and go and you get the candle in the first 30 mins, then it’s worth taking. The timing of everything just takes a lot of practice.

[@mauriciomoreno5818]

Great video Brad!! Thank you man!!! Abrazo!

[@RealLifeTrading]

Mauricio Moreno Hoooray!!! :)

[@EzRichardson]

Great video man!!

[@RealLifeTrading]

Ezra Richardson Thank you very much!!!

[@xViiiZe]

How long have you been trading this pattern? Do you reckon it'll still be viable to trade in the next 5.10. 15 years etc...?

[@RealLifeTrading]

xViiiZe Yep! Everything works ~ just not all the time. ;) This strategy works very well on small gaps; both up and down. Especially the ones that perfectly clear recent events. :-)

[@xViiiZe]

@@RealLifeTrading Gothca, thanks! Btw was PEP a valid one on October 3rd?

[@RealLifeTrading]

xViiiZe Yep!!! Absolutely. However, the 2nd candle was better candle to play once it came in. :)

[@xViiiZe]

@@RealLifeTrading Ahhhh so basically if on a long bias trade the stock forms three 5 min red candles at the open you base you entry and SL on the 2nd red candle rather than the first one?

[@RealLifeTrading]

xViiiZe Whichever candle begins to form the high wave / indecision candle = yep

[@mitchmcc27]

Hey Brad Interesting video. Going to start trying this in my paper account - would definitely fit with my situation right now. So tonight my gap down scan is producing 77 results. I can't look at 77 charts in the first five minutes after tomorrow's opening. How do I chose the best handful of these 77 to look at? Thanks

[@RealLifeTrading]

Mitchell McCann 77?!? That’s tons.. wow. Well, go with stocks that are higher than $5 More than 500k average daily volume and are gapping down more than 1% That should get it down to 12-20 or so usually =}

[@Xclusives10]

Would you suggest options with this strategy?

[@RealLifeTrading]

kdubbw12 Sure.

[@user-fd7yr2ov2l]

Do you have a class for day trading with accounts under $25,000 who have to deal with the pdt rule?

[@RealLifeTrading]

Chez Blunts Tons! kzbin.info/www/bejne/qHPNao2Anritbsk

[@RealLifeTrading]

Chez Blunts Tons of info here = reallifetrading.com/products/professional-trading

[@user-fd7yr2ov2l]

Real Life Trading I watched that video, but it didn't have what I was looking for. From what I've seen, most daytrading strategies don't take the pdt rule into account and assume you're going to be making several trades a day. I'm looking for strategies that do take the pdt rule into account. I'm also only looking to trade stocks, and i'm not looking to trade penny stocks (stocks that trade under $1 (i'd prefer to trade stocks in the range of $2 - $5) and I don't want to use opm.

[@oxygenmec]

V Nice

[@RealLifeTrading]

MONEY MATRIX Thanks

[@pagalalp123]

that is the metod i use...also.bt not so ggood

[@RealLifeTrading]

Thanks for commenting