Candle Range Theory (CRT)

Candle Range Theory (CRT) is a price action strategy that identifies high-probability setups based on how candle ranges interact across multiple timeframes.

What Is CRT?

CRT analyzes the relationship between a candle's range (high to low) and subsequent price action. When a candle's range is swept and price reverses, it signals institutional activity and a potential trade opportunity.

How CRT Detects Setups

1. The bot identifies a significant HTF candle range (e.g., previous day or 4h candle).
2. It monitors for a sweep of that candle's high or low on the LTF.
3. After the sweep, it looks for reversal confirmation — a shift in LTF structure.
4. Entry is triggered at the optimal point within the reversal zone.

HTF/LTF Alignment

CRT works best when the higher timeframe provides directional bias and the lower timeframe provides precise entries. For example, a daily candle range sweep confirmed by a 15m structure shift produces high-probability setups.

Turtle Soup Patterns

CRT incorporates turtle soup logic — identifying false breakouts beyond key levels. When price sweeps above a previous high and quickly reverses, it traps breakout traders and creates an opportunity in the opposite direction.

Entry & Exit Logic

• Entry — Triggered after LTF confirmation following an HTF range sweep.
• Stop Loss — Placed beyond the sweep point to protect against continuation.
• Take Profit — Targets the opposite end of the HTF candle range or key structural levels.