Candle Range Theory (CRT)

Learn Candle Range Theory (CRT), a price action trading strategy for all markets. Identifies market reversals using a 3-candle 'liquidate then reverse' pattern

Published · Updated · Methodology: Price Action

Part of: Candle Range Theory (CRT)

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: H1, H4, Daily, M15, M5, M1
  • Markets: All assets

Source video

Decoded from: How to use Candle Range Theory: a simple breakdown for beginners (CRT method) - Candle Range Theory - CRT - Official Website by candlerangetheory.com — watch the original

Strategy overview

Candle Range Theory (CRT) reads a single candle's range as a container of liquidity — the high and low mark where stops rest, and the following candles are interpreted by how they sweep and react to those edges. What distinguishes this entry is not the concept but the source: it comes from candlerangetheory.com, a site presenting itself as the official home of the method, in a video framed as a simple breakdown for beginners.

That framing is worth pausing on, because trading concepts have no registrar. CRT spread through videos, threads and screenshots rather than through a specification anyone signed off on, which is exactly why competing versions of it disagree about basic questions. A dedicated domain publishing a primer is an attempt to fix that — to establish one baseline definition the rest can be measured against. Useful as a reference point, but "official" here is self-declared, not conferred, and it carries the same weight as any other well-argued version: read it as the author's canonical account, then check whether the CRT you see elsewhere matches it.

The breadth of the entry fits that reference role. It spans M1 through Daily rather than committing to one chart, which is how a primer typically teaches CRT — as a scale-agnostic way of looking at candles rather than a setup tied to a session or an instrument. That generality is what makes an introduction easy to follow and also what leaves it short of tradeable: vocabulary first, decisions later. No rules or parameters were extracted from this source, so this page stays at the concept level and does not present a mechanical breakdown of the setup.

Topics

candle range theory · crt strategy · price action strategy · trading strategy · tradingview strategy · pine script · all assets trading · multi timeframe analysis · market reversal strategy · liquidation trading · scalping strategy · day trading strategy · swing trading

Frequently asked questions

Is there an official definition of Candle Range Theory?

There is no governing body for trading concepts, so no definition is official in any formal sense. The term spread through videos and social posts, and candlerangetheory.com positions itself as the method's home. Treat it as a strong baseline version rather than a settled standard, and expect other sources to define the range and its confirmation differently.

Is CRT suitable for beginners?

The concept is easy to state, which is why beginner explainers gravitate to it — you can see a range candle and a sweep on any chart within minutes. Understanding it is not the same as trading it: entries, invalidation and position sizing still have to be defined explicitly and tested before any of it becomes a plan.

What timeframe is Candle Range Theory used on?

This entry spans M1, M5, M15, H1, H4 and Daily, which reflects how introductions usually present CRT — as a way of reading candles at any scale. In practice the chosen timeframe changes everything downstream, since the same pattern on a 1-minute candle and a daily candle involves very different amounts of liquidity, noise and trading cost.

How can I compare different versions of CRT?

Put them side by side on the same chart and check where they disagree: how the range is measured, what counts as a valid sweep, and where the trade is invalidated. Strategy Decoder catalogs versions decoded from different video sources, which makes those differences easier to see than reading each explanation in isolation.

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.

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