Day Trading 101 - The Red Candle Theory | Stop Chasing Stocks and Trade With a Plan

Most new traders struggle with timing their entries—either chasing a stock too early or getting in too late with no clear plan. In this video, we break down the Red Candle Theory (RCT) step by step using a real trade example on OLB to show how structured setups remove emotion from your trading decisions. You’ll learn how to identify the first red 5-minute candle after a major spike, how to map your entry and stop levels, and how to calculate a 3:1 risk-to-reward ratio before you even enter the trade. This approach helps traders avoid chasing moves and instead trade with a clear plan. We also cover position sizing, profit targets, and scaling out strategies so you can manage risk and lock in gains when momentum hits. If you want a simple framework for pre-market and after-hours trading setups, the Red Candle Theory is one of the most powerful patterns to understand. In this video, you’ll learn: • What the Red Candle Theory (RCT) pattern is • How to identify the first red 5-minute candle after a spike • Where to place your entry, stop loss, and profit targets • How to calculate risk-to-reward before entering a trade • Why chasing stocks leads to losses—and how to avoid it Subscribe for more breakdowns of high-probability trading patterns and strategies. Chapters: 0:00 – Why Most Traders Struggle With Timing 0:40 – The Initial Spike (Why You Shouldn’t Chase) 1:37 – Identifying the First Red Candle (RCT Setup) 3:08 – Entry Point, Stop Loss, and Risk Management 5:04 – Calculating the 3:1 Risk-to-Reward Target 🎯 WATCH NEXT: https://youtu.be/9cJyV3QP7hE 📺 Day Trading 101 Playlist: https://stockstotrade.info/DT101P 🚀 TOOLS & TRADER RESOURCES ✅ Join a LIVE STT Session: https://stockstotrade.info/live23 ✅ $7 Trial – StocksToTrade: https://stockstotrade.info/3Qqs78G 📢 SHARE THIS VIDEO: https://youtu.be/aKDAIr6Uzoo #DayTrading #StockMarket #RedCandleTheory ---------------------------------------------------------------------------------------------------------------- *Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.