Trading Academy Day 40: Candle Range Theory/Turtle Soup Model (CRT)

00:26:30
https://www.youtube.com/watch?v=mTQZHTQ5XFg

Sintesi

TLDRIn Day 40 of the Trading Academy series, the speaker discusses Candle Range Theory (CRT), a strategy they currently favor. CRT uses candles as ranges and is applicable across various timeframes, though it tends to work best on higher ones like 4-hour and daily charts. The theory involves waiting for a new candle to open in a specific mannerโ€”high if shorting and low if longingโ€”and looking for cues like SMT divergences and market manipulation candles for low-risk, high-reward trades. The tutorial differentiates between parent candles and important candle ranges (ICR) and lays out the process of identifying ranges. It emphasizes the importance of opening prices, draw liquidity, and distribution of candles. The video uses examples from different asset classes like Forex, gold, and indices, demonstrating practical applications of CRT and stressing the importance of correct candle range identification for successful trading. The speaker encourages viewers to master this along with two other models, the Unicorn and the Inverse Fair Value Gap, to achieve profitability in trading.

Punti di forza

  • ๐Ÿ“ˆ Candle Range Theory (CRT) helps traders use candles as ranges.
  • ๐Ÿ•’ CRT is most effective on higher time frames.
  • ๐Ÿ” Look for candle patterns like SMT divergences for clues.
  • ๐Ÿ“‰ For short positions, focus on candles that open high.
  • ๐Ÿ“ˆ For long positions, candles should open low.
  • ๐Ÿ”‘ Parent candles and ICR are crucial in identifying ranges.
  • โš–๏ธ Effective risk-reward management involves manipulation candles.
  • ๐ŸŒ CRT can be applied across different markets like Forex and indices.
  • ๐Ÿ“‰ Avoid longing distribution candles; proper range identification is key.
  • ๐Ÿ—‚๏ธ Previous models like Unicorn and Inverse Fair Value Gap complement CRT.

Linea temporale

  • 00:00:00 - 00:05:00

    The speaker introduces the Trading Academy's Day 40 session, focusing on the advanced trading strategy of Candle Range Theory (CRT). CRT involves using candles as ranges and determining the direction of trades by waiting for specific manipulation in candle openings. The strategy includes identifying range candles, and using the next candle's opening to execute trades, with an emphasis on higher time frames for accuracy.

  • 00:05:00 - 00:10:00

    The speaker explains the mechanics of the distribution candle in CRT, the concept of manipulation within candles, and using candle ranges for trading decisions. The strategy highlights targeting points of control and emphasizes risk-reward by waiting for conditions like an SMT divergence during manipulation candles.

  • 00:10:00 - 00:15:00

    The session further delves into using candle ranges across various time frames, specifying the use of 4H candles for larger picture trades. It discusses the multiple phases of market moves - accumulation, manipulation, and distribution, and how they relate to the expected price movement and risk management.

  • 00:15:00 - 00:20:00

    Using the example of gold and index trading, the speaker illustrates the principles of candle range selection by identifying parent candles and important candle ranges (ICR). The session covers the importance of sweeping liquidity and setting take-profit points at the equilibrium of candle ranges.

  • 00:20:00 - 00:26:30

    The final segment details practical applications in index trading, demonstrating setups on lower time frames, confirming entries with SMT divergence, and managing trades according to the candle range theory principles. Emphasis is placed on maintaining discipline in trade entries and exits based on pre-determined zones and expected market behavior.

Mostra di piรน

Mappa mentale

Video Domande e Risposte

  • What is Candle Range Theory (CRT)?

    Candle Range Theory is a strategy that uses candles as ranges for trading, applicable to different time frames.

  • Who popularized the Candle Range Theory?

    The Candle Range Theory was popularized by someone named Romeo.

  • On which time frames does CRT work best?

    CRT works best on higher time frames like the 1-hour, 4-hour, 6-hour, 12-hour, daily, and weekly charts.

  • What is the main concept of shorting with CRT?

    For shorting, you wait for the next candle to open high and then short when it sweeps the high of the range candle.

  • What are some key candle opening times for indices?

    The key candle opening times for indices are 6:00 AM, 10:00 AM, and 2:00 PM.

  • How does one identify which candle to use as a range?

    Use any candle that closes a body above the previous candle's high or vice versa as a range.

  • What is an Important Candle Range (ICR)?

    ICR is a candle that closes inside the range of a parent candle without sweeping its high or low.

  • How is risk-reward managed in CRT?

    Risk-reward is managed using the Manipulation Candle, with emphasis on entering at the optimal time and managing take profits and stop-losses effectively.

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  • 00:00:00
    guys to Trading Academy Day 40 we are
  • 00:00:02
    nearing the end of the Academy I think
  • 00:00:05
    um I don't really got much more videos
  • 00:00:07
    to put out so and this is going to be
  • 00:00:09
    one of my favorite videos right here
  • 00:00:10
    because we're going to go over the
  • 00:00:11
    current strategy that I am using or
  • 00:00:14
    mainly using nowadays but uh yeah if you
  • 00:00:17
    guys enjoyed the the video and the
  • 00:00:18
    academy man leave me a like comment
  • 00:00:20
    subscribe it really helps out the
  • 00:00:21
    channel grow I'm trying to get to 10K
  • 00:00:23
    Subs before the summer starts so if you
  • 00:00:26
    guys can get me there that'd be
  • 00:00:28
    awesome I'm drinking coffee I'm
  • 00:00:30
    I'm kind of congested as well but
  • 00:00:32
    anyways let's get into it so candle
  • 00:00:35
    range Theory you guys have probably
  • 00:00:36
    heard around heard this around like
  • 00:00:38
    social media probably specifically more
  • 00:00:39
    Twitter you guys probably seen it on my
  • 00:00:41
    Tik Tok Etc um it is a really good model
  • 00:00:44
    um credit to I think Romeo he's the one
  • 00:00:47
    who really popularized it it has worked
  • 00:00:49
    so take it for me I used to be a guy
  • 00:00:51
    that would be like uh you know I don't
  • 00:00:52
    want to really learn you models and
  • 00:00:54
    strategies and that's fine if you got
  • 00:00:56
    your strategy locked in just you know
  • 00:00:59
    stick with it don't fix what's broken
  • 00:01:01
    like the unicorn model that's a very
  • 00:01:03
    good model that's a very U beginner
  • 00:01:05
    friendly model this is going to be way
  • 00:01:06
    more
  • 00:01:08
    advanced like I said I have a whole
  • 00:01:10
    playlist dedicated to the unicorn model
  • 00:01:12
    if you guys want to go watch that and
  • 00:01:13
    the inverse fair value Gap model is
  • 00:01:15
    pretty straightforward as well but this
  • 00:01:16
    one's going to be a little more advanced
  • 00:01:18
    so yeah let's get into it so CRT candle
  • 00:01:22
    range Theory this is basically going to
  • 00:01:24
    be we're going to be using U candles as
  • 00:01:28
    ranges okay
  • 00:01:30
    basically what we're going to do and
  • 00:01:32
    this is fractal right you can use this
  • 00:01:33
    on any time frame but we're pretty much
  • 00:01:35
    going to be using candles as ranges okay
  • 00:01:39
    ideally you want to get into the
  • 00:01:41
    distribution candle okay so let's say
  • 00:01:44
    this candle here is going to be our
  • 00:01:46
    range right now we wait for the next
  • 00:01:48
    candle to open and I'll explain how we
  • 00:01:50
    use specific ranges or what candle to
  • 00:01:52
    use as our range um I'll show you guys
  • 00:01:55
    some examples as well but this is just a
  • 00:01:57
    rough draw real quick okay so let's say
  • 00:02:00
    we're using this candle as our as our
  • 00:02:01
    range okay we want to wait for the next
  • 00:02:03
    candle to open and if we're looking for
  • 00:02:05
    shorts right if our drawing liquidity is
  • 00:02:07
    going to be lower on the higher time
  • 00:02:09
    frames again drawing liquidity is going
  • 00:02:10
    to be very important so if we're looking
  • 00:02:14
    for shorts right if we're looking for
  • 00:02:16
    shorts we want the next candle here if
  • 00:02:19
    we're using this as our range we want
  • 00:02:20
    this candle to open high okay we don't
  • 00:02:23
    want to short a candle that opens lower
  • 00:02:25
    first we want the candle to open high
  • 00:02:28
    sweeping this candle right the candle
  • 00:02:30
    that we're using as our range sweeping
  • 00:02:31
    its candles High okay now let's say this
  • 00:02:34
    is the 1 hour or 4our um chart because
  • 00:02:37
    that's usually where it works best okay
  • 00:02:40
    uh again you can use this on any time
  • 00:02:41
    frame for scalps and stuff like that if
  • 00:02:43
    you're using it on the lower time frames
  • 00:02:44
    but it's best it works on like the
  • 00:02:46
    higher time frames like 1 Hour 4 Hour 6
  • 00:02:48
    hour 12 hour daily weekly Etc but let's
  • 00:02:51
    just say it's 1 hour we want to wait for
  • 00:02:53
    this candle to open high if we're
  • 00:02:54
    bearish if we want to short we want to
  • 00:02:56
    wait for it to open high okay so put
  • 00:02:59
    that in your notes
  • 00:03:00
    right open high is what we want to look
  • 00:03:03
    for if we want to go short and then open
  • 00:03:07
    low is what we want to look for if we
  • 00:03:09
    want to go long okay if we're long bias
  • 00:03:12
    so imagine this candle if it opened down
  • 00:03:14
    here if price action was down here um
  • 00:03:17
    and we were looking to go long we want
  • 00:03:18
    this to open lower first sweeping than
  • 00:03:20
    this low and then we would look for
  • 00:03:22
    potential Longs in the lower time frames
  • 00:03:23
    okay you never want to you never want a
  • 00:03:26
    long a open high and you never want a
  • 00:03:29
    short open low okay keep that in mind
  • 00:03:32
    all right you can Replay that as much as
  • 00:03:34
    you need to
  • 00:03:35
    so let's say this candle opens high on
  • 00:03:38
    the 1 hour right this is the
  • 00:03:39
    manipulation candle okay this is going
  • 00:03:41
    to be the manipulation candle and
  • 00:03:43
    usually in the manipulation candle is
  • 00:03:45
    going to be more advanced but usually on
  • 00:03:46
    the manipulation Candle on the lower
  • 00:03:48
    time frames on the 15 minute 5 minute 1
  • 00:03:50
    minute 15c even um you will get an smt
  • 00:03:54
    Divergence in this Wick your job here is
  • 00:03:58
    to enter on the wick or try to enter on
  • 00:04:00
    the wick on the manipulation candle
  • 00:04:01
    again this is going to be more advanced
  • 00:04:03
    a more advanced tactic again that's why
  • 00:04:06
    I said you want to enter on the
  • 00:04:06
    distribution candle if you're not super
  • 00:04:08
    familiar with this strategy but the
  • 00:04:11
    manipulation candle is going to be your
  • 00:04:12
    best entry in terms of risk reward um so
  • 00:04:16
    you want to enter on the smt in the
  • 00:04:18
    manipulation candle if you are correct
  • 00:04:20
    this shouldn't get back above up to here
  • 00:04:23
    this canle on the distribution can tap
  • 00:04:25
    the the uh Range High which is called
  • 00:04:28
    point of control
  • 00:04:30
    right this is called your
  • 00:04:34
    P right it's basically going to be U
  • 00:04:36
    your Range High of this candle's range
  • 00:04:39
    um it's high that's going to be PLC it
  • 00:04:40
    can come all the way up to here and
  • 00:04:42
    usually if the turtle soup right this is
  • 00:04:46
    what um when we have a sou liquidity and
  • 00:04:48
    you get into the top or the manipulation
  • 00:04:51
    candle it's going to be a turtle soup
  • 00:04:52
    right some of you guys may have heard of
  • 00:04:53
    it some of you guys may have not heard
  • 00:04:55
    of it but this is pretty much a turtle
  • 00:04:56
    soup entry okay it's going to be your
  • 00:04:58
    best risk reward Etc
  • 00:05:00
    anyways when the distribution candle
  • 00:05:02
    opens up it can come up to OT of this
  • 00:05:05
    candle's
  • 00:05:07
    range okay so if you were to take a fib
  • 00:05:09
    and you were to draw this out it can get
  • 00:05:11
    up to OT of this range you guys
  • 00:05:13
    shouldn't be freaking out it shouldn't
  • 00:05:15
    get above this high if the smt is valid
  • 00:05:18
    and if this is actually your
  • 00:05:20
    manipulation candle it could definitely
  • 00:05:21
    do something like this so your best bet
  • 00:05:24
    in my opinion is to get into the
  • 00:05:25
    distribution candle if you're not
  • 00:05:26
    familiar with the strategy okay you can
  • 00:05:29
    tap PC and then the next couple candles
  • 00:05:31
    should distribute lower and this would
  • 00:05:33
    be your target right here now let's go
  • 00:05:35
    over to the next example so I could
  • 00:05:37
    explain this a little more
  • 00:05:41
    better okay so let's say this is your
  • 00:05:44
    4our range okay you have a 4H hour
  • 00:05:47
    candle and you're going to use it as
  • 00:05:48
    your range all right so the next one
  • 00:05:51
    hour candle or 15-minute candle opens or
  • 00:05:53
    the next 4H hour candle opens right so
  • 00:05:55
    let's say this is the 6 a.m. candle on
  • 00:05:58
    indices right um one more thing I want
  • 00:06:00
    to mention before we move forward for
  • 00:06:02
    Forex it's going to be a little
  • 00:06:04
    different the 4our candles if you're
  • 00:06:05
    using them it's going to be 159 right
  • 00:06:08
    these are the 4H hour candle openings
  • 00:06:10
    and for indices it's a little different
  • 00:06:12
    for indices this is going to be
  • 00:06:15
    two
  • 00:06:17
    2102
  • 00:06:18
    okay or actually sorry sorry sorry sorry
  • 00:06:21
    sorry it's going to be 6102 my bad 6:00
  • 00:06:23
    a.m. 10 a.m. and then 2 p.m. okay these
  • 00:06:25
    are when the 4our candle opening um this
  • 00:06:27
    is when the 4our candles open these are
  • 00:06:29
    the candles that I use mainly whenever
  • 00:06:31
    I'm playing ranges or try to use but
  • 00:06:33
    again you can use them on the 1 hour 15
  • 00:06:35
    minute Etc okay so let's say this is
  • 00:06:37
    your 4 Hour candle and then we have
  • 00:06:39
    another 4H hour candle open okay so down
  • 00:06:41
    here this is going to be your opening
  • 00:06:43
    price for the next 4our
  • 00:06:45
    candle okay so open remember when we
  • 00:06:48
    talked about opening Guys open close
  • 00:06:50
    open high low close and open low high
  • 00:06:53
    close go rewatch that video it it was
  • 00:06:55
    one of the very first videos in this
  • 00:06:57
    Academy okay if you guys don't
  • 00:06:58
    understand this is very important for
  • 00:07:00
    this strategy specifically all right so
  • 00:07:02
    we have the opening of a new 4-Hour
  • 00:07:03
    candle but we're using this one as our
  • 00:07:05
    range okay so that's why I have this
  • 00:07:06
    marked right here right imagine if we uh
  • 00:07:09
    if we had it marked here as on this
  • 00:07:11
    candle here okay I'm just moving it to
  • 00:07:12
    the right here so this is the opening of
  • 00:07:15
    the new 4our candle okay opening price
  • 00:07:18
    now we go lower we sweep the low of this
  • 00:07:22
    4our candle that we are looking at for
  • 00:07:25
    using our range right okay we sweep the
  • 00:07:28
    low so let's say that the other index
  • 00:07:30
    makes a lower low and this one here
  • 00:07:33
    makes a higher low okay what do we have
  • 00:07:35
    here we have an smt Divergence right so
  • 00:07:39
    we have an smt Divergence here so this
  • 00:07:41
    is where this is where the manipulation
  • 00:07:43
    happens and this is where you would want
  • 00:07:45
    to get in ideally if you know what
  • 00:07:47
    you're doing if not you would wait for
  • 00:07:49
    the you know next uh 1 hour candle
  • 00:07:51
    opening because if you were to split the
  • 00:07:53
    4H hour candle right let's say this is
  • 00:07:55
    the new one right in here this price
  • 00:07:57
    section this black line this is a new 4H
  • 00:07:58
    hour candle we open we have an smt we
  • 00:08:01
    could split this new 4-Hour candle into
  • 00:08:04
    four 1hour candles you guys following me
  • 00:08:06
    here so you could split the 4-Hour
  • 00:08:08
    candle into four 1our candles so we have
  • 00:08:12
    the opening price of the new 4-Hour
  • 00:08:15
    candle which you can consider the
  • 00:08:16
    opening price or accumulation right so
  • 00:08:19
    we can accumulate here for the first one
  • 00:08:21
    hour here let me change this we can
  • 00:08:24
    accumulate here for the first 1 hour of
  • 00:08:26
    that new 4H hour candle right let me
  • 00:08:29
    switch this here we can accumulate for
  • 00:08:32
    the first 1 hour of that new 4-Hour
  • 00:08:34
    candle opening right we have an smt this
  • 00:08:36
    is the manipulation candle you would
  • 00:08:38
    want to get in on the wick okay um this
  • 00:08:41
    is basically where you would get in on
  • 00:08:42
    the wick right here on the smt right you
  • 00:08:44
    would want along the stronger one that
  • 00:08:46
    makes the higher low and if you were to
  • 00:08:49
    Long the one that makes the lower
  • 00:08:52
    low you would basically get in on the
  • 00:08:54
    breaker now this is what makes a breaker
  • 00:08:56
    high probability if you're using this
  • 00:08:58
    strategy right you can confidently enter
  • 00:09:00
    on the breaker because it's high
  • 00:09:03
    probability if this is correct right now
  • 00:09:06
    if you use that first hour of the new
  • 00:09:08
    4-Hour candle opening this is going to
  • 00:09:10
    be accumulation okay then the next three
  • 00:09:12
    candles should be distribution right so
  • 00:09:15
    this is your manipulation accumulation
  • 00:09:17
    and then the next three candles in that
  • 00:09:18
    4-Hour candle should be distribution to
  • 00:09:20
    the upside of the 4H hour candles range
  • 00:09:22
    so let's say you get into here in this
  • 00:09:24
    smt this is going to be your lowrisk buy
  • 00:09:27
    okay it's going to be your lowrisk Buy
  • 00:09:29
    and you would aim for here okay there
  • 00:09:31
    going to be your lowrisk buy right here
  • 00:09:32
    you get in anywhere around here or you
  • 00:09:35
    don't even have to get in right here you
  • 00:09:37
    can wait for a pullback into OT of this
  • 00:09:40
    range right here right and it usually
  • 00:09:42
    does come back if the turtle soup is
  • 00:09:45
    valid if the sweep of the lows are valid
  • 00:09:47
    and the smt is valid a retracement to OT
  • 00:09:50
    shouldn't scare you that should be
  • 00:09:51
    confirmation of this to go higher okay
  • 00:09:53
    usually we do retrace to
  • 00:09:55
    OT a lot of the times in these uh
  • 00:09:58
    situations here when you we're using
  • 00:09:59
    candles as ranges we will retrace the OT
  • 00:10:02
    and we will go higher okay so the 50% of
  • 00:10:05
    the candles range or the range that you
  • 00:10:07
    are using for whatever candle you're
  • 00:10:09
    using the 50% is going to be your
  • 00:10:11
    takeprofit one okay so
  • 00:10:15
    TP partials break even right TP you
  • 00:10:19
    could take profit here you could partial
  • 00:10:21
    right meaning trim um or stops to break
  • 00:10:26
    even right stops to break even as at the
  • 00:10:29
    50% of the candle's range right at the
  • 00:10:32
    equilibrium of the candle range this is
  • 00:10:35
    where discount is of this candle right
  • 00:10:37
    remember remember when we use discount
  • 00:10:38
    and premium right that's basically the
  • 00:10:40
    same we're just using the candles
  • 00:10:42
    as ranges right you're pretty much
  • 00:10:43
    buying a deep discount down here where
  • 00:10:46
    the smt is occurring this is your
  • 00:10:47
    lowrisk buy and then you would TP once
  • 00:10:49
    it hits equilibrium which is going into
  • 00:10:51
    premium right TP you could set your
  • 00:10:53
    stops to break even Etc and usually if
  • 00:10:56
    we're right we'll get another turtle
  • 00:10:58
    soup here and we'll have another smt
  • 00:11:00
    right around here in one of the
  • 00:11:01
    correlated uh assets and then we'll keep
  • 00:11:03
    going higher and we'll take out the
  • 00:11:04
    4-Hour candles range higher whatever
  • 00:11:07
    range you are using whatever candle
  • 00:11:09
    you're using on whatever time frame
  • 00:11:10
    right and then we'll you know do
  • 00:11:12
    whatever else after sweeping the high
  • 00:11:14
    and then we usually close off and then
  • 00:11:16
    you know we'll have to re-evaluate where
  • 00:11:19
    our next range is going to be right
  • 00:11:21
    after usually for me in my opinion after
  • 00:11:23
    we sweep the the low and high of the
  • 00:11:25
    range that we're using I kind of just be
  • 00:11:27
    done for the day or I'll just wait and
  • 00:11:29
    until we make a new Range which is going
  • 00:11:31
    to go which brings me to my next um my
  • 00:11:36
    next thing which is going to be like
  • 00:11:37
    okay which candles do we use as a range
  • 00:11:39
    how do we
  • 00:11:40
    identify um which candle to use as a
  • 00:11:43
    range right so I'm actually I'm actually
  • 00:11:46
    going to show you guys here which
  • 00:11:47
    candles to use as a range so if I start
  • 00:11:49
    here on gold right just on the daily
  • 00:11:51
    chart here actually we'll just go weekly
  • 00:11:53
    right so the candles that you want to
  • 00:11:56
    use
  • 00:11:57
    for as ranges okay is going to be any
  • 00:12:01
    candle that closes the body above the
  • 00:12:02
    previous candle so here this would have
  • 00:12:05
    been our range right because this candle
  • 00:12:07
    closed a body way above this candle's
  • 00:12:09
    high right we closed a body above it and
  • 00:12:11
    then this could have been our range but
  • 00:12:14
    this week closed a body above this
  • 00:12:16
    candle High okay so this becomes our new
  • 00:12:19
    range right here all right boom this
  • 00:12:21
    becomes our new Range okay so what do we
  • 00:12:25
    do when this candle closes inside this
  • 00:12:27
    candle's range all right this candle
  • 00:12:29
    right here is going to be called a
  • 00:12:31
    parent candle Okay then if we have a
  • 00:12:34
    candle close inside this candle's range
  • 00:12:36
    and we don't sweep the high nor the low
  • 00:12:39
    this becomes our range that we are going
  • 00:12:40
    to use for the short term okay this
  • 00:12:42
    becomes our icr our important candle
  • 00:12:45
    range
  • 00:12:46
    okay so as you guys could see here this
  • 00:12:50
    candle here we could use it for the
  • 00:12:52
    short term but we would still want to be
  • 00:12:54
    paying attention to this one right
  • 00:12:56
    because sometimes price action doesn't
  • 00:12:58
    need to sweep the candle low or high but
  • 00:13:01
    it usually will sometimes we don't but
  • 00:13:03
    it usually will so we use this candle if
  • 00:13:05
    this candle closes inside this candle's
  • 00:13:07
    range and we don't sweep the high or the
  • 00:13:08
    low this becomes our new candle in the
  • 00:13:10
    short term okay but we'll still be
  • 00:13:12
    paying attention to this one we'll still
  • 00:13:13
    be paying attention to the high and low
  • 00:13:15
    now if I start zooming into the daily
  • 00:13:17
    you guys can see here it starts getting
  • 00:13:18
    a little interesting right so like I
  • 00:13:20
    said we'll use this candle's low and
  • 00:13:23
    we'll use this candle's high in the
  • 00:13:24
    short term because on the weekly I just
  • 00:13:26
    showed you guys right we close inside
  • 00:13:27
    this candle's range because this candle
  • 00:13:29
    closed a body Above This candle's high
  • 00:13:31
    and then this candle didn't sweep the
  • 00:13:33
    the high or low so we use this candle in
  • 00:13:34
    the short term so if I go to the Daily
  • 00:13:37
    you guys could see here Monday Tuesday
  • 00:13:39
    Wednesday Thursday Friday right this is
  • 00:13:42
    the week that we're going to use and
  • 00:13:43
    then Monday we come down we sweep the
  • 00:13:45
    low right boom We sweeped the low or
  • 00:13:48
    actually we didn't we swept it on
  • 00:13:49
    Tuesday okay so Tuesday we come all the
  • 00:13:52
    way down we reach for that other low on
  • 00:13:55
    the weekly candles right so if I go to
  • 00:13:57
    the weekly candle we reach for the
  • 00:13:58
    parent candle
  • 00:13:59
    low okay so if I go to the Daily we see
  • 00:14:02
    a huge Wick here okay was there any
  • 00:14:04
    entry around here let's go to the 4
  • 00:14:06
    Hour right ah okay so now we can start
  • 00:14:11
    frtiz meaning we can start zooming into
  • 00:14:13
    the time frames and using the 4 Hour as
  • 00:14:15
    ranges right so right here this low
  • 00:14:19
    right here which is sell side
  • 00:14:21
    right that's the apparent candles low
  • 00:14:24
    okay now this candle right here would be
  • 00:14:27
    our range for the 4our at least right
  • 00:14:30
    why because we close the body above or
  • 00:14:32
    below all these candles so this becomes
  • 00:14:34
    our new Range until we see a body candle
  • 00:14:38
    closure below this candle right here or
  • 00:14:40
    above this candle so this is going to be
  • 00:14:41
    our range for the 4 Hour okay as you
  • 00:14:44
    guys can see here this candle here
  • 00:14:46
    closed with inside this range right here
  • 00:14:49
    so this becomes our icr our important
  • 00:14:52
    candle range for the short term and then
  • 00:14:54
    this is our parent candle okay so the
  • 00:14:56
    next 4 hour right here at two in the
  • 00:14:58
    morning
  • 00:14:59
    we come down we sweep the low but we
  • 00:15:02
    never closed a body below it okay so we
  • 00:15:05
    sweep the iccr's low and the parent
  • 00:15:07
    candle low so what's
  • 00:15:09
    next the high right this is going to be
  • 00:15:12
    actually it's going to be the 50% of
  • 00:15:13
    this candles and then the high okay so
  • 00:15:15
    if I mark it Mark this out here we going
  • 00:15:18
    to mark this out here guys let's see
  • 00:15:21
    template uh
  • 00:15:23
    range boom right Mark this out as our
  • 00:15:26
    range now let's start zooming into to
  • 00:15:27
    the one hour okay
  • 00:15:31
    okay so let me actually go ahead and
  • 00:15:33
    take this off real quick just so it
  • 00:15:35
    doesn't get confusing
  • 00:15:37
    so that 4H hour candle is our range and
  • 00:15:39
    this 1 hour can be our range as well
  • 00:15:41
    it's the same thing right the 1 hour
  • 00:15:42
    candle closed a body below all these
  • 00:15:44
    candles so we don't have any closure
  • 00:15:46
    below any or we don't have any body
  • 00:15:48
    candle closures below this low right
  • 00:15:50
    here right so we end up sweeping this
  • 00:15:52
    low right so this is where you can get
  • 00:15:54
    in right here when we come up we close
  • 00:15:57
    but we don't even have to use smt
  • 00:15:59
    remember how I said we have to use smt
  • 00:16:00
    I'm looking at gold right you could use
  • 00:16:02
    silver as a correlated asset to find smt
  • 00:16:04
    I don't really trade gold as much but
  • 00:16:08
    CRT uh the candle range Theory works
  • 00:16:10
    really really well on it um I'm going to
  • 00:16:12
    show you guys some examples on indices
  • 00:16:13
    as well but as you guys can see here
  • 00:16:15
    this is our 4our candle range we come
  • 00:16:17
    down we sweep it now our TP if we were
  • 00:16:20
    get in in this wick on the 4 Hour or 1
  • 00:16:22
    hour Wick our TP or partial or break
  • 00:16:26
    even spot would be at the 50% of this 4
  • 00:16:28
    Hour candle and then runners or whatever
  • 00:16:30
    else you want to hold your position to
  • 00:16:32
    would be up here and as you guys can see
  • 00:16:34
    we end up hitting it right there okay so
  • 00:16:37
    if I go to the 15 minute let's start
  • 00:16:38
    zooming in even
  • 00:16:40
    more let's go over here all right
  • 00:16:43
    there's really nothing that I see right
  • 00:16:44
    here besides this order block let's go
  • 00:16:46
    to the five minute okay let's start
  • 00:16:48
    zooming in let's see if we could find a
  • 00:16:49
    breaker block or anything of that nature
  • 00:16:53
    right here okay we don't see anything
  • 00:16:54
    here now let's go to the one minute real
  • 00:16:56
    quick let's just see let's see if
  • 00:16:58
    there's any break or anything like that
  • 00:17:00
    around here okay let's go to the one
  • 00:17:02
    minute very low time frame where are we
  • 00:17:05
    I don't even know where we're at
  • 00:17:08
    uh let's see we're way over here okay
  • 00:17:11
    wait where are we let's see let me find
  • 00:17:13
    my spot
  • 00:17:15
    boys hold on give me a
  • 00:17:19
    second all right let me bring it back on
  • 00:17:21
    replay because I don't want
  • 00:17:23
    to go all the way back let's go one
  • 00:17:25
    minute okay one minute time frame right
  • 00:17:28
    we sweep that low here on the 4 Hour or
  • 00:17:31
    1 hour whatever range you're using um
  • 00:17:34
    and as you guys could see here this is
  • 00:17:35
    beautiful right we have that
  • 00:17:37
    inverse fair value Gap strategy right so
  • 00:17:40
    if using the inverse fair value Gap
  • 00:17:41
    strategy right you guys could use that
  • 00:17:44
    right here right you could use the
  • 00:17:46
    inverse fair value Gap we can have
  • 00:17:48
    breaker blocks order blocks it's going
  • 00:17:50
    to be high probability if the if your
  • 00:17:52
    candle range is correct right it's going
  • 00:17:54
    to be very high probability we have the
  • 00:17:56
    order block right here right this is our
  • 00:17:57
    order block right here here we could
  • 00:17:59
    have order block right there you drag
  • 00:18:00
    that out it respects it obviously look
  • 00:18:02
    at the C of it right no body candle
  • 00:18:04
    closures below it and then we start
  • 00:18:06
    pushing up like crazy right boom boom
  • 00:18:08
    boom bo boom so as you guys can see
  • 00:18:11
    there um we also have a breaker let me
  • 00:18:14
    go to the five minute real
  • 00:18:16
    quick actually no we don't um
  • 00:18:19
    but as you guys can see here it starts
  • 00:18:22
    respecting the bullish PD arays right
  • 00:18:23
    here fair value Gap tap we come down we
  • 00:18:26
    tap this 5 minute order block right
  • 00:18:27
    there that's high probability and then
  • 00:18:29
    we're tapping point of control which is
  • 00:18:30
    the range low of this right and then
  • 00:18:33
    your TP right your first TP would be the
  • 00:18:37
    50% of this which obviously gets hit
  • 00:18:39
    here and then we start you know bouncing
  • 00:18:42
    around boom boom boom um let's see where
  • 00:18:45
    this ends up going and then you know if
  • 00:18:47
    I drag this range out a lot more we're
  • 00:18:49
    in the premium side of this candle's
  • 00:18:53
    range as you guys can see here another
  • 00:18:55
    sweep and then boom right if order flow
  • 00:18:58
    is truly B bullish remember we sweep
  • 00:19:00
    lows we reject lows and we break highs
  • 00:19:02
    right we come back we come back so this
  • 00:19:04
    is our range still we're still using the
  • 00:19:06
    4our as our range just drag this out and
  • 00:19:09
    then we sweep the Range High right there
  • 00:19:11
    okay there was another example here on
  • 00:19:13
    the daily that was very very nice um if
  • 00:19:15
    you guys look right here this is
  • 00:19:17
    actually pretty sick because if I leave
  • 00:19:19
    this pairing candle's high right here
  • 00:19:22
    drawn right believe that high drawn and
  • 00:19:25
    then we go to the Daily this this is our
  • 00:19:26
    range right now right because why
  • 00:19:28
    because we closed a body below
  • 00:19:30
    everything over here right so this
  • 00:19:31
    becomes our new range right here so I
  • 00:19:33
    mark this range out and then as you guys
  • 00:19:35
    could see here we never close a body
  • 00:19:38
    below the range low right here right we
  • 00:19:40
    come back we sweep a low again and then
  • 00:19:42
    we're just kind of just sideways for a
  • 00:19:44
    bit right if I go to the 1 hour here
  • 00:19:47
    this is our daily range right here that
  • 00:19:49
    we're using we come back we sweep
  • 00:19:51
    liquidity and then we start pushing up
  • 00:19:53
    and then look at this guys this is very
  • 00:19:55
    very nice right you just Mark out your
  • 00:19:58
    range we tap poter control perfectly tap
  • 00:20:00
    it again sweep liquidity now we're ready
  • 00:20:02
    to go up okay so right here this like
  • 00:20:05
    you didn't even have to trade at all of
  • 00:20:07
    this right here you could have just
  • 00:20:08
    looked at this right here this one hour
  • 00:20:11
    candle on this day as your range right
  • 00:20:15
    because again you can fractalize it
  • 00:20:16
    right so you could use this as your
  • 00:20:18
    range because why because we're here let
  • 00:20:20
    me turn on the this separation of the
  • 00:20:23
    days right this is Thursday's trading
  • 00:20:25
    day right midnight opening we go we go
  • 00:20:28
    up and then we come back down and we tap
  • 00:20:30
    below midnight opening we go into this
  • 00:20:32
    fair value Gap this key level right
  • 00:20:35
    which is right under this candle range
  • 00:20:36
    is low and look at this candle right
  • 00:20:38
    here this 9:00 a.m. right what it do it
  • 00:20:40
    opened lower no top Wick okay so you
  • 00:20:43
    could have just placed the limit order
  • 00:20:44
    right there and then you could have took
  • 00:20:46
    it up to this candle Range High and then
  • 00:20:47
    if you're looking at the higher time
  • 00:20:49
    frame drawing liquidity which was that
  • 00:20:51
    daily candle's high right if I go to the
  • 00:20:53
    Daily candle you guys will see that
  • 00:20:56
    daily candle's High We sweep it right
  • 00:20:59
    and then this becomes our new range and
  • 00:21:01
    then this becomes our new Range because
  • 00:21:03
    we close a body above it and this
  • 00:21:05
    becomes our new Range because we close a
  • 00:21:06
    body below this one and then this
  • 00:21:09
    becomes our new or our icr because we
  • 00:21:11
    close within this range right here and
  • 00:21:13
    then this becomes our new range and look
  • 00:21:15
    guys like I said if the if the sweeps
  • 00:21:18
    are valid we get a high probability
  • 00:21:20
    order block or not order block well
  • 00:21:22
    order block too and breaker block okay
  • 00:21:25
    so we have a breaker block right here on
  • 00:21:26
    the daily we use it we respect it and
  • 00:21:29
    now we're drawing up to that Weekly
  • 00:21:30
    candles High okay crazy crazy stuff with
  • 00:21:33
    the candle ranges it's very very nice um
  • 00:21:36
    let me show you guys some examples also
  • 00:21:37
    on indexes I'll show you guys a quick
  • 00:21:40
    one because I think this video is going
  • 00:21:41
    to be too long but I don't want to drag
  • 00:21:43
    it out too much uh if I split this
  • 00:21:46
    open let me go ahead and show you
  • 00:21:48
    guys actually Thursday was a perfect
  • 00:21:51
    example of this let me show you guys
  • 00:21:52
    this all right so 1 hour we're going to
  • 00:21:54
    use this as our range right here so this
  • 00:21:58
    right here here on 10: a.m. 10 a.m. open
  • 00:22:01
    lower right it opened lower and then we
  • 00:22:04
    sweep the low over here the 9:00 a.m.
  • 00:22:05
    candle right so this is our 4H hour
  • 00:22:07
    candle open we open lower we sweep and
  • 00:22:10
    we have an smt Divergence there okay so
  • 00:22:13
    let me go to the five minute real quick
  • 00:22:15
    so right here 10: a.m. um 10 a.m. opens
  • 00:22:18
    here we open lower we have an smt you
  • 00:22:21
    can get in right here okay this is going
  • 00:22:23
    to be your low Market buy right we have
  • 00:22:25
    an smt right here with es and and NQ you
  • 00:22:29
    can get in buys right there and Target
  • 00:22:31
    the draw liquidity up here these highs
  • 00:22:33
    right here these relative equal highs
  • 00:22:35
    right there okay if not if you miss this
  • 00:22:37
    setup here or if you're too afraid to
  • 00:22:39
    get into you know a rejection block
  • 00:22:41
    right here right if you're too afraid to
  • 00:22:43
    get in that
  • 00:22:46
    um sorry guys somebody textt me if
  • 00:22:48
    you're too afraid to get in into that
  • 00:22:50
    position right there you can always wait
  • 00:22:52
    for the 11:00 a.m. candle and see what
  • 00:22:54
    that does and as you guys can see here
  • 00:22:55
    let me go to the one minute
  • 00:22:58
    pretty crazy stuff guys so 10 a.m range
  • 00:23:01
    right we Mark our 10 a.m. range so 11:
  • 00:23:04
    a.m should be um if we're bearish if we
  • 00:23:07
    want to look for downside it should be
  • 00:23:10
    the manipulation candle and how would I
  • 00:23:11
    know that because we keep we make smt
  • 00:23:13
    Divergence here with um NQ NQ makes the
  • 00:23:16
    higher highs and then es and ym make
  • 00:23:18
    higher or lower highs right makes lower
  • 00:23:21
    highs right here at the highs okay so
  • 00:23:24
    this is where you would want to get into
  • 00:23:25
    es or even ym potentially okay
  • 00:23:29
    um the reason for that is because
  • 00:23:32
    specifically in this example we're at
  • 00:23:33
    all-time highs so we don't know how far
  • 00:23:35
    NQ can go um while es and ym are holding
  • 00:23:38
    the S&T Divergence so you would want to
  • 00:23:40
    get in the weaker one in this case which
  • 00:23:42
    would be es and then like I said guys if
  • 00:23:45
    the turtle soup is valid if the sweep on
  • 00:23:47
    liquidity is valid at the Range High we
  • 00:23:51
    sometimes not always but we sometimes
  • 00:23:53
    come back to OT okay and look at this OT
  • 00:23:57
    we retrace all the way way back up to OT
  • 00:23:59
    and then we tap what the breaker block
  • 00:24:02
    fair value Gap right order block CISD we
  • 00:24:05
    tap all these things and then we go
  • 00:24:07
    lower right and then 12:00 a.m or 12 P
  • 00:24:10
    PM opens we open lower right and now you
  • 00:24:13
    wouldn't want to long this and the
  • 00:24:15
    reason why you wouldn't want to long
  • 00:24:16
    this is because we're in distribution
  • 00:24:18
    candles you don't want to Long
  • 00:24:19
    distribution candles if this is valid if
  • 00:24:22
    this turtle soup is valid and if this
  • 00:24:24
    Range High The Sweep of the Range High
  • 00:24:26
    is valid you guys do not want a long
  • 00:24:29
    distribution candles to the downside
  • 00:24:31
    which is going to be the range low right
  • 00:24:32
    target is going to be the range low
  • 00:24:34
    obviously the 50% is going to be your
  • 00:24:37
    takeprofit or your part your partial
  • 00:24:39
    spot right which obviously gets here hit
  • 00:24:41
    here on the 12 pm open right we sweep
  • 00:24:44
    liquidity there and then we hit it right
  • 00:24:46
    there right so you don't want to Long
  • 00:24:48
    anything I mean you can but they're
  • 00:24:49
    going to be very temporary right and
  • 00:24:51
    then 1 pm opens here 1 pm actually opens
  • 00:24:54
    lower and then we go high and then what
  • 00:24:57
    we make I believe we made another smt
  • 00:25:00
    somewhere around here we made another
  • 00:25:02
    smt um at the yeah we made an smt at the
  • 00:25:05
    12:00 p.m high right 12:00 pm NQ sweeps
  • 00:25:09
    it but es and ym fail to sweep the 12 pm
  • 00:25:12
    high and then we go way lower and we
  • 00:25:15
    attack the uh the range low and then we
  • 00:25:17
    obviously just go lower after that right
  • 00:25:20
    you don't want a long distribution
  • 00:25:21
    candles in in this scenario here right
  • 00:25:25
    so yeah guys hope you guys enjoyed the
  • 00:25:27
    uh the CRT video um rewatch it if you
  • 00:25:29
    need to I know it's a lot but yeah guys
  • 00:25:32
    hope you guys enjoyed this video um I
  • 00:25:34
    think we're yeah we're nearing the end
  • 00:25:36
    of the academy but if you guys like this
  • 00:25:38
    video please comment subscribe let me
  • 00:25:40
    know if you guys like the academy it's
  • 00:25:42
    been amazing lately but I've
  • 00:25:44
    enjoyed uh making these videos for you
  • 00:25:46
    guys these three models right the
  • 00:25:49
    inverse the unicorn and the CRT model
  • 00:25:53
    these three models are the only ones you
  • 00:25:55
    need really to be profitable in these
  • 00:25:57
    markets and when you get a sweep like
  • 00:26:00
    this like this is a unicorn up here
  • 00:26:02
    right this is a unicorn right here
  • 00:26:04
    breaker block fair value Gap combo on
  • 00:26:06
    the one minute this becomes your high
  • 00:26:08
    probability unicorns and Breakers
  • 00:26:11
    because of the sweep on the range right
  • 00:26:14
    sorry guys if you hear my dogs barking
  • 00:26:15
    but yeah hope you guys enjoyed the video
  • 00:26:17
    study these three models and I'll catch
  • 00:26:19
    you guys in tomorrow's video for Sunday
  • 00:26:22
    all right guys catch you guys later hope
  • 00:26:24
    you guys enjoy the Academy please
  • 00:26:25
    comment love please comment like
  • 00:26:27
    subscribe
  • 00:26:28
    and I'll catch you guys later peace
Tag
  • Trading strategy
  • Candle Range Theory
  • CRT
  • Technical analysis
  • Market manipulation
  • Risk management
  • Forex trading
  • Stock indices
  • Advanced trading