CRT also known as Candle range theory is one of the most reliable and accurate setup you will see in the Forex trading.
Here's a brief breakdown of how it really works and how to apply it correctly for Maximum profitability.
How it works 👇🏾
A strong candle usually forms on higher timeframes like 4hrs or Daily timeframe that creates the range from its high to its low. This range represents a mini market structure on lower timeframes
The second candle that forms is the manipulation candle which is the candle that sweeps liquidity. Price tends to sweep one side of the range first either the high or low, then reverse and move toward the opposite side. That sweep is where smart money traps retail traders.
The third and last candle that forms is the confirmation candle and it forms only after a liquidity raid of the first candle by the second candle (manipulation candle). If the second candle raids the first candle high then expect a continuation downward by the third candle
The same thing happens when the second candle sweeps the liquidity of the first candle low. When this happens expect a continuation upward by the third candle
This is similar to Accumulation, Manipulation and Distribution but it happens only with few candle
But here is one condition that makes this setup valid.
The liquidity sweep must be done only by the wick of the second candle or any subsequent candle that sweeps the liquidity of the first and not the body and it must return back into the range of the first candle
Identify a strong higher timeframe candle
Wait for the price to enter its range
Look for a liquidity sweep
Drop to lower timeframes like 5mins or 15mins for confirmations like FVG, BOS, OB
Target the opposite side of Candle.
CRT model is 70-90% accurate when combined with price action tools like FVGS and Order blocks which makes it's accumulation manipulation and distribution move very reliable especially in higher timeframes
Note that all teachings here are based on technical analysis and personal discoveries and are not in any way a financial advice for future trading. Trading in the financial markets is solely on personal decisions and no one is responsible for any form of losses incurred the candle.
ANALYST OLIVIA 🌼🌼🌼🌼🌼🌼🌼🌼