Candle Range Theory (CRT) Entry Explained

Learn to plan entries with the Candle Range Theory (CRT) strategy. Identify setups using independent candles, liquidity sweeps, and confirm with FVG and Order B

Published · Updated · Methodology: SMC

Part of: Candle Range Theory (CRT)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: 1 Day, 4 Hours, 1 Hour, 15 Minutes, 5 Minutes, 3 Minutes, 1 Minute, 1 Week, 1 Month
  • Markets: Crypto, Altcoins, Gold, Stocks, Indices, Forex

Indicators used

  • Fair Value Gap (FVG)
  • Order Block

Source video

Decoded from: This CRT Strategy Is KING (Candle Range Theory Entry Explained)HINDI by Tech earn studio — watch the original

Key timestamps:

  • 0:20 - Introduction to CRT third candle entry
  • 0:40 - Definition of an independent candle for CRT
  • 2:00 - Timeframe for CRT setup (1 day or 4 hours)
  • 3:40 - Planning entry on the third candle using smaller timeframes
  • 4:50 - Using FVG for direct entry
  • 6:30 - TBS (Turtle Body Soup) vs TWS (Turtle Wick Soup) setups
  • 8:20 - Strongest setup: FVG + Unmitigated Order Block + Trend Reversal
  • 12:40 - Importance of healthy CRT candle for target
  • 16:00 - Example of CRT setup with FVG and Order Block
  • 18:00 - Timeframe shifting for confirmation

Strategy overview

Candle Range Theory reads a three-candle sequence — a candle that sets a range, a candle that runs its extreme, and a candle that resolves the move — as a map of where liquidity was taken and which way price should travel next. What distinguishes this entry is that it spends nearly its entire runtime on the third candle alone. The chapter list opens on "third candle entry" and never really leaves it: what counts as an independent candle, which timeframe hosts the setup, and how to plan the entry once that candle is the one in front of you. The range and the sweep are treated as already understood; the video, titled "This CRT Strategy Is KING (Candle Range Theory Entry Explained)", is about the moment of execution rather than the pattern as a whole.

That focus explains why the material ends in a taxonomy rather than a checklist. Its closing section separates TBS from TWS — Turtle Body Soup and Turtle Wick Soup — names that trace CRT's lineage back to the older Turtle Soup reversal idea and that divide the setup by which part of the preceding candle is the reference being taken: the body or the wick. Handing a viewer two named families to sort a candle into is a different kind of teaching than handing them conditions to verify. It supplies a vocabulary for describing what just happened, and leaves the judgment about which family is on the chart where discretionary methods usually leave it — with the person reading it.

The entry-first framing also clarifies what the long timeframe list is doing here. The setup itself is anchored on the daily or four-hour candle, while the smaller intervals tagged on this page — down to the one-minute — belong to the drill-down step, where lower-timeframe tools like the fair value gap and the order block come into the picture to place an entry inside a much larger candle. The video is delivered in Hindi, putting a concept usually taught in English in front of a different audience. No mechanical rules were extracted from this source, so this page offers the concept and the shape of the video's argument; the source itself remains where the third-candle read is actually demonstrated.

Topics

smc strategy · candle range theory · crt strategy · fair value gap · order block · price action · trading strategy · swing trading · day trading · crypto trading strategy · forex strategy · gold trading strategy · 15 minute strategy · 1 day strategy · tradingview strategy

Frequently asked questions

What is the "third candle" in Candle Range Theory?

CRT reads price across a three-candle sequence, and the third candle is the one that resolves the move after the range's extreme has been run. This video treats that resolution candle as its main subject, dedicating most of its chapters to how the entry around it is planned rather than to the pattern's earlier stages.

What do TBS and TWS mean in CRT?

TBS and TWS stand for Turtle Body Soup and Turtle Wick Soup — labels that carry CRT's naming lineage back to the older Turtle Soup reversal concept. The distinction turns on whether the body or the wick of the preceding candle is the reference being taken out, and the source video presents them as two variants of the same third-candle idea.

Which timeframe does this version of CRT use?

The video points to the daily or four-hour candle as the timeframe that hosts the setup, and brings smaller timeframes in only at the entry-planning stage. That split — a high timeframe for the pattern, a low one for execution — is a common structure in SMC-style approaches, and it is why a single strategy can be tagged across a wide range of intervals.

How can I evaluate a CRT entry approach before trading it?

Define the pattern precisely enough to test it — including which candle counts as the range, what qualifies as a valid run of its extreme, and where the trade is invalidated — then backtest it on historical data before risking capital. Strategy Decoder catalogs strategies like this one from video sources so you can see what a given creator actually teaches; note that no mechanical rules were extracted from this particular source.

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