# Candle Range Theory (CRT) Trading Strategy Explained - Original post: https://www.twitter.com/i/status/2120422427880837426 - Source account: [@IamMavion](https://x.com/IamMavion) - Source language: English - Duration: 4:16 - Published: 2026-11-11 - Canonical URL: https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained ## Transcript [0:00](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained) Today, we're breaking down the CRT strategy or candle range theory. [0:05](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=5) The concept is simple. If price sweeps the high of a candle and closes back below it, we're looking for price to move toward the low. [0:14](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=14) If price sweeps the low and closes back above it, we're looking for price to move toward the high. [0:19](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=19) Once the CRT range is established, we drop to a lower timeframe to find an entry. [0:24](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=24) Let's start with a bearish example. We begin with the four-hour candle and wait to see which side price takes. [0:31](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=31) Price sweeps the high and closes back below it. [0:34](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=34) That establishes the CRT high, giving us a bearish expectation toward the CRT low. [0:42](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=42) Now we move to the fifteen-minute chart and look for an entry. [0:45](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=45) Here we have a mitigation block and a fair value gap. [0:49](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=49) The entry comes from the fair value gap. [0:51](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=51) The stop goes above the swing high and the target is the CRT low. [0:56](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=56) Now let's look at the bullish side. Price sweeps the previous candle's low and closes back above it. [1:02](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=62) This establishes the CRT low and gives us a bullish target toward the CRT high. [1:08](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=68) We then drop to the fifteen-minute timeframe to find our entry. [1:13](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=73) Here, price sweeps liquidity and breaks structure to the upside. [1:17](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=77) We also have a fair value gap overlapping with an inverse fair value gap, creating a balanced price range. [1:23](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=83) That becomes our entry zone. The stop goes below the balanced price range with the CRT high as the target. [1:30](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=90) Next, let's move to a daily CRT example. [1:34](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=94) Price sweeps the previous candle's low and closes back above it. [1:38](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=98) That gives us a bullish CRT setup with the CRT high as our target. [1:44](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=104) Because we're working from the daily timeframe, we move down to the one-hour chart for the entry. [1:49](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=109) The CRT low is formed by a liquidity sweep. [1:53](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=113) We then see a bearish fair value gap get broken and become an inverse fair value gap. [1:59](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=119) That gives us a potential retest area for the long entry. [2:04](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=124) The stop goes below the CRT low while the target remains the CRT high. [2:10](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=130) For the final example, let's test the entry. [2:13](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=133) Price sweeps the previous candle's low and closes above it, giving us a bullish CRT setup toward the CRT high. [2:22](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=142) Now we move to the one-hour chart and have two possible entry areas. [2:27](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=147) Which one would you choose? Point A or point B? [2:30](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=150) Take a few seconds and decide. The better entry is point A. So why is point A the entry? [2:36](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=156) First, price is forming higher highs and higher lows, showing bullish structure. [2:42](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=162) Then we get a break of structure to the upside, leaving behind multiple fair value gaps. [2:48](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=168) Point A sits inside a fair value gap in the discount zone with a mitigation block providing additional confluence. [2:57](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=177) That gives us our entry area. The stop goes just below the mitigation block and the target is the CRT high. [3:04](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=184) The final piece is timeframe alignment. Don't apply CRT randomly across timeframes. [3:10](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=190) The higher timeframe determines where the CRT setup forms while the lower timeframe gives you the entry. [3:17](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=197) The alignment is weekly CRT to four-hour entry, daily CRT to one-hour entry, four-hour CRT to fifteen-minute entry, one-hour CRT to five-minute entry. [3:31](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=211) Keeping this alignment consistent helps you avoid dropping too far down and entering from unnecessary noise. [3:38](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=218) CRT becomes even more useful when combined with additional confluences and proper timeframe alignment. [3:46](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=226) The key process is simple. Identify the CRT sweep. [3:52](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=232) Wait for the close. Define the CRT target. [3:56](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=236) Drop to the aligned lower timeframe. Find your entry and manage the risk. [4:00](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=240) If you found this breakdown useful, like the video and subscribe for more trading frameworks. [4:06](https://www.translate.mom/transcript/7aQvziTtBKbi/en/candle-range-theory-crt-trading-strategy-explained?t=246) I'll see you in the next one. If you want to increase your chances at being profitable, join my free seven-day masterclass link in description.