Candle Range Theory, Smart Money Concepts, Fair Value Gaps, Liquidity Sweeps

Learn a high-probability SMC strategy combining Candle Range Theory, Fair Value Gaps, and Liquidity Sweeps for trend-aligned entries in any market.

Published · Updated · Methodology: SMC

Part of: Candle Range Theory (CRT)

  • Methodology: SMC
  • Content type: educational
  • Markets: EUR/USD (mentioned in video description)

Indicators used

  • Candle Range Theory
  • Smart Money Concepts
  • Fair Value Gap (FVG)
  • Liquidity Sweeps
  • Premium and Discount Zones
  • Multi Time Frame Analysis

Source video

Decoded from: Candle Range Theory Trading Strategy Using Liquidity Sweeps by Com Lucro Trader — watch the original

Key timestamps:

  • 0:00 - Introduction to Candle Range Theory
  • 0:20 - Combining CRT with Smart Money Concepts, Fair Value Gaps, and Trend Direction

Strategy overview

Candle Range Theory treats a single candle's range as the container the following candles trade against — its high and low become the liquidity boundaries that later price action either respects or runs through. What distinguishes this entry is that CRT is not really the subject of the video: the chapter map gives the concept twenty seconds before moving to "Combining CRT with Smart Money Concepts, Fair Value Gaps, and Trend Direction", and the title itself routes the whole setup through liquidity sweeps. Com Lucro Trader is not teaching the pattern here so much as assigning it a job inside a stacked Smart Money Concepts toolkit.

That assignment is the useful thing to read for. In a stack like this one, each named component is answering a different question: the candle range says *where* the meaningful levels sit, the liquidity sweep says *when* something has actually happened at one of them, a fair value gap says *at what price* a return might be engaged, and trend direction says *which side* of the range to care about. Confluence stacks tend to fail in two specific ways — two components silently answering the same question, so agreement is circular rather than confirming, or no component answering "which way", leaving the trader with a good level and no bias. Promoting the sweep into the title suggests this video's answer to the second problem is the sweep event itself, with CRT demoted from signal to map.

Two gaps are worth naming. The tagged toolkit for this strategy also includes premium and discount zones and multi-timeframe analysis, neither of which surfaces in the two-chapter breakdown — so the framework is broader than the visible structure of the video. And no timeframe is declared anywhere, which matters more than usual for this combination: sweeps and fair value gaps have very different meaning depending on whether the range candle is a daily bar or a five-minute one. No rule set was extracted from this source, so this page covers the concept and the combination the video declares, not a specification you can code from.

Topics

pine script · trading strategy · tradingview strategy · smc strategy · ict trading · price action · eur/usd trading strategy · fair value gap · liquidity sweeps · candle range theory strategy · multi timeframe analysis · swing trading

Frequently asked questions

What does it mean to trade Candle Range Theory with liquidity sweeps?

It means using the candle range only to define the levels that matter — the high and low of the reference candle — and waiting for a sweep through one of those levels as the event that signals intent. The range supplies the map; the sweep supplies the timing.

Why combine CRT with fair value gaps and trend direction?

Because each answers a different question. The range identifies where the levels are, the sweep identifies when a level has been tested, a fair value gap identifies a price area where a return might be engaged, and trend direction filters which side of the range to trade. The combination only adds value when the components are not all answering the same question.

What timeframe does this Candle Range Theory setup use?

The source does not declare one, and CRT is scale-agnostic by design — the same structure can be read on a daily candle or an intraday one. That choice changes how much liquidity sits at the range boundaries and how often a sweep occurs, so it is a variable to settle before testing.

Are the exact entry and exit rules of this strategy documented?

No rule set was extracted from this video, so no entries, exits or parameters are published here. Strategy Decoder catalogs the concepts and toolkit each source declares; for videos where a mechanical structure can be extracted, that structure is published on the strategy page so it can be tested rather than assumed.

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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