CRT Indicator

Learn the Candle Range Theory (CRT) indicator. This price action strategy identifies daily high/low breakouts and reversals on 1-min, 5-min, and Daily timeframe

Published · Updated · Methodology: Price Action

Part of: Candle Range Theory (CRT)

  • Methodology: Price Action
  • Content type: indicator
  • Timeframes: Daily, 1 minute, 5 minute

Indicators used

  • CRT Indicator

Source video

Decoded from: This NEW CRT Indicator Identifies Ideal Setups by LuxAlgo — watch the original

Key timestamps:

  • 0:00 - Introduction to CRT concept
  • 0:12 - Daily timeframe analysis for CRT
  • 0:20 - Condition for CRT setup (take out high/low, close back in)
  • 0:35 - Reversal after break is crucial
  • 0:40 - Dropping to lower timeframe for entry
  • 0:50 - LuxAlgo Quant tool for CRT indicator
  • 1:20 - Adding CRT labels to chart
  • 1:40 - Adding dashboard for sentiment

Strategy overview

Candle Range Theory reads a completed candle's range as the reference for the next move, watching for a run beyond its high or low that closes back inside. What separates this entry from most CRT material is that it is not framed as a chart-reading lesson at all: the subject is an indicator that marks the condition for you, presented by LuxAlgo in "This NEW CRT Indicator Identifies Ideal Setups". The shift is from teaching an eye to trusting a marker.

That reframing carries a claim worth separating into two halves. Detection is the easy half — the condition is binary and closes on a candle, so any tool with the definition can flag every instance after the fact. Selection is the hard half, and "ideal setups" is a selection claim: it asserts that some marked instances are worth taking and others are not. An indicator that draws every occurrence has told you where they are, not which ones qualify, and no qualifying criterion appears anywhere in the video's public chapter list. Note too that the detection is inherently retrospective — the close-back-inside only exists once the candle has closed — which is the structural reason the video moves down a timeframe to find an entry at all.

The format itself is unusually compressed: the entire chapter list runs from 0:00 to roughly the fifty-second mark, with each marker carrying a single definitional beat — the concept, the higher-timeframe reading, the condition, the reversal, the drop for entry — before handing off to the tool that does the marking. Nothing on record names the instrument, the session, the specific execution timeframe below the daily, or the standard by which a flagged setup earns the word "ideal". This page covers the concept as the video frames it and what its own structure does and does not commit to.

Topics

crt indicator · price action · trading strategy · candlestick strategy · daily timeframe strategy · 1 minute strategy · 5 minute strategy · tradingview strategy · pine script · day trading strategy · reversal strategy · price range strategy

Frequently asked questions

What does a CRT indicator actually detect?

It flags instances of the Candle Range Theory condition — price running beyond a reference candle's high or low and then closing back inside that range. Because the condition resolves on a candle close, the marking is confirmed after the fact rather than in advance.

Does an indicator make a CRT setup automatic?

Not by itself. Marking every occurrence of a condition and deciding which occurrences are worth trading are two different problems. A title promising "ideal setups" is making the second claim, which requires a stated qualifying criterion — a filter, a context rule, or a confirmation step — separate from the detection logic.

What timeframes does this version of CRT use?

The video works the daily timeframe to mark the reference high and low, then drops to a lower timeframe to locate the entry. The specific execution timeframe is not named in the video's public chapter markers, nor is the instrument or session.

How should I evaluate an indicator-based approach like this one?

Fix the definitions the indicator leaves implicit — what counts as a valid break, what counts as closing back inside, and what disqualifies a marked instance — then test the result on historical data before committing capital. 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.

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