Candle Range Theory (CRT)

Discover the Candle Range Theory (CRT) strategy for Forex trading. Identify 'true' candle ranges to find precise entry, stop loss, and take profit points in tre

Published · Updated · Methodology: Price Action

Part of: Candle Range Theory (CRT)

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: Not specified, but examples shown on higher timeframes (e.g., 4H)
  • Markets: Forex

Source video

Decoded from: Me Explotó La Cabeza Con Esta Estrategia CRT (Candle Range Theory) by TradingForexTV Directos (Canal Secundario) — watch the original

Key timestamps:

  • 0:00 - Introduction to Candle Range Theory (CRT)
  • 1:20 - Defining the 'true' candle range (open to close)
  • 2:30 - How to identify a valid CRT candle
  • 3:45 - Entry rules for long positions
  • 5:15 - Stop loss placement
  • 6:00 - Take profit targets
  • 7:30 - Example of a long trade setup
  • 9:00 - Example of a short trade setup

Strategy overview

Candle Range Theory (CRT) treats a single higher-timeframe candle as a container whose extremes get swept before price travels toward the opposite side — but this video's entire hinge is a question most CRT material glosses over: which two prices actually define that range. Early in the walkthrough the presenter separates the "true" range of a candle from the one most people default to, anchoring it on the open and the close rather than on the high and the low.

That distinction is not cosmetic. A body-based range excludes the wicks, which are precisely the parts of the candle where sweeps and rejections show up, so the two conventions can disagree about whether a candle qualifies as a valid CRT candle at all, where its boundaries sit, and whether a given move counts as a sweep or as an ordinary excursion inside the range. Anyone comparing CRT explanations across channels will find this is one of the main reasons two traders can follow "the same" concept and mark up a chart completely differently — and it is worth settling before adopting any version.

The source is a Spanish-language walkthrough from TradingForexTV's secondary, livestream-oriented channel, with a reaction-style title rather than a documentary one — enthusiasm about a definition, not a claim about results. Its chapters move from the range definition to identifying a valid candle and then to entries, stop placement and targets, but no structured rule set was extracted for this entry, so this page does not carry a mechanical breakdown. What it offers is the framing to take back to the source: nail down the range convention first, because every downstream decision inherits it.

Topics

candle range theory · crt strategy · price action · forex strategy · forex trading · trading strategy · candlestick patterns · swing trading · technical analysis · tradingview strategy · pine script

Frequently asked questions

What does "candle range" actually mean in Candle Range Theory?

It depends on the version. Many CRT explanations use the full candle — high to low, wicks included — while this video argues the meaningful range runs from the open to the close, i.e. the candle body. Both are in circulation, which is why it is worth checking which one a given source means.

Why does the open-to-close vs high-to-low distinction matter?

Because the wicks are where sweeps and rejections appear. Excluding them produces a narrower zone with different boundaries, so the two conventions can disagree on whether a candle qualifies, where its levels sit, and whether a move counts as a sweep of the range or as movement within it.

Does this entry include the video's entry, stop and target rules?

No. The video's chapters cover those topics, but no structured rule set was extracted for this entry, so this page describes the concept and the video's angle rather than a mechanical breakdown. For the operational detail, go to the source video.

What timeframe is this CRT version shown on?

The source does not commit to a specific timeframe, though examples are demonstrated on higher timeframes such as the 4-hour chart. Before testing any CRT variant, fix both the timeframe and the range definition, then backtest on historical data — Strategy Decoder extracts the structure of strategies from video sources so you can evaluate them on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies