[00:00] Follow this one rule and price won't hit your stop loss as much. Every single candle has an open, a close, a high, and a low. The rule is you only want to take long trades below the opening price of a candle.
[00:13] And you only want to take short trades above the opening price of a candle. An easy way to do this is by going to your chart and going to the daily time frame. Here we can see we have a green candle on the daily time frame.
[00:25] So we mark the open of the candle by putting a line right here. We then go to a smaller time frame like the one hour. We only look for indications to enter a trade if price is below this line.
[00:37] These indications can be whatever strategy you're currently trading with. Fair value gaps, order blocks, indicators, whatever. Here we have a fair value gap on the one hour time frame. It also coincides with our rule of being below the opening price of the daily candle.
[00:52] Price respects our fair value gap and targets higher liquidity, giving us a winning trade. Follow this rule and you'll get way more successful trades.