# Candle Range Theory Explained: Liquidity Sweeps and Trade Entries - Original post: https://www.twitter.com/i/status/2116072472135258173 - Source account: [@IamMavion](https://x.com/IamMavion) - Source language: English - Duration: 6:10 - Published: 2026-10-30 - Canonical URL: https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries ## Transcript [0:00](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries) And the basics. What is candle range theory CRT? [0:05](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=5) The theory works on the premise that every candle forms a trading range which forms a pool of liquidity above the highs and below the lows. [0:13](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=13) Here is how it works. First, we mark the candle range high and the candle range low. [0:20](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=20) Above the candle range high and below the candle range low, there is a pool of liquidity in form of buy stops, sell stops, and stop losses. [0:29](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=29) If price sweeps the candle range high and closes below it, there is a high probability that price will expand lower to seek the liquidity nested below the candle range low. [0:39](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=39) On the flip side, if price sweeps below the candle range low and closes within the range, there is a high chance that the market will rally up to seek liquidity nested above the candle range high. [0:52](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=52) Point to note. We don't mark any random candle in the market and apply this strategy. [0:58](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=58) However, we follow strict rules and conditions for this model to work. [1:03](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=63) We shall break down the conditions step by step in this episode. [1:07](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=67) Once we have identified the candle range high and low, we zoom down to the lower timeframe for trade opportunities and entry confirmations. [1:16](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=76) Let's look at examples. Here we have a daily candle. [1:21](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=81) We wait for either side of the range to be swept. [1:24](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=84) As you can see, price swept the high and closed below it. [1:28](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=88) Now that the CRT high has been swept, we anticipate that the price will seek for a sweep of the CRT low. [1:36](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=96) We now drop to the one-hour chart. Here, we can see a break of this recent structure low, creating a market structure shift. [1:45](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=105) Now, the question is: Where do we sell at? [1:48](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=108) Applying smart money concepts, we can see this fair value gap which acts as a magnet to price. [1:55](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=115) We place our sell limit at the fifty percent of the fair value gap, stop loss above the swing high, and target below the candle range low. [2:03](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=123) As you can see, price expands lower as anticipated and hits our target. [2:09](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=129) Before we look at a bullish scenario, please take a minute and give this video a thumbs up, subscribe and share with us the topics you would like us to explore in our future videos. [2:20](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=140) Let's get back to the charts. First of all, we can see that price swept the recent structure low and sharply reversed to the upside, closing within the range. [2:30](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=150) With the first condition met, we head down to the lower timeframe for signs of reversal and entry confirmations targeting the CRT high. [2:39](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=159) On the fifteen minutes chart, the sweep of liquidity is evident leading to the break of the recent structure high. [2:46](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=166) Additionally, the bulls confirmed their buying momentum by breaking this other structure. [2:51](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=171) To add to our confluence, price is retesting the fair value gap. [2:56](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=176) So, we take our buy position here, stop loss just below the recent structure low and take profit above the candle range high. [3:04](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=184) As you can see, take profit got hit. If you trade the CRT alone without the following conditions, then you will definitely fail. [3:16](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=196) Let's look at the rules and conditions to optimize the CRT trading model. [3:21](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=201) First, identify the higher timeframe direction. [3:25](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=205) You should then wait for a pullback in the opposite direction at a point of interest. [3:30](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=210) Price should then sweep the candle range low or high. [3:33](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=213) The intended direction of the trade should align with the higher timeframe trend direction. [3:39](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=219) The sweep should also happen at a point of interest for a high probability set up. [3:44](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=224) Additionally, a market structure shift must form in the lower timeframe to validate the set up. [3:50](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=230) Let's combine these conditions in a real chart example. [3:54](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=234) Here, we can see that the market is in an uptrend breaking structure highs. [3:59](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=239) Price then created this bullish order block with a fair value gap. [4:03](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=243) So, we have this level marked as our point of interest. [4:07](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=247) Looking closely at the chart, we can mark this candle's high and low as it retesting the point of interest. [4:14](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=254) Now, price has swept the candle low and bounced from the order block. [4:18](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=258) The next pool of liquidity that we expect the price to sweep is the candle range high. [4:24](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=264) We can then scale down to the lower timeframe and look for a buy opportunity. [4:28](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=268) Here in the lower timeframe, price broke structure high after the sweep of liquidity forming a market structure shift. [4:35](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=275) The next thing to note is this bullish fair value gap which price must respect if it has to expand higher. [4:42](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=282) So, we can set our entry at the fair value Our stop loss goes just below the CRT low, and our take profits is set at the CRT high. [4:53](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=293) And as you can see, price expanded aggressively to the upside hitting our take profit. [4:59](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=299) So, you can see that the CRT trading strategy is a powerful tool i Trading. [5:04](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=304) However, in addition to the rules and conditions we have just discussed, timeframe alignment is key if you want to achieve great results. [5:13](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=313) The best time frame alignment for better accuracy is as follows. [5:17](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=317) Weekly CRT. Take your entry on the four-hour chart. [5:22](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=322) Daily CRT. Take your entry on the one-hour chart. [5:27](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=327) Four-hour CRT. Take your entry on the fifteen minutes chart. [5:33](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=333) One hour CRT. Take your entry on the five-minute time frame. [5:38](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=338) Any CRT on any time frame lower that fifteen minutes may not yield better results as you will often face stop outs. [5:46](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=346) You can also combine the CRT model with other smart money concepts for more accuracy and confluence. [5:53](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=353) I will dive deeper into more confluences in my upcoming video, so check it out soon. [5:59](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=359) If you enjoy this video, don't forget to give it a thumbs up and subscribe if you are new. [6:04](https://www.translate.mom/transcript/lW2mvJAZjE1S/en/candle-range-theory-explained-liquidity-sweeps-and-trade-entries?t=364) Share with us any topics that you would like us to cover in our future videos