Candle Range Theory (CRT) | Shortcut to Profitability | PT. 1 - ICT Concepts

Introduction

This tutorial will guide you through the Candle Range Theory (CRT) presented by Krish Allen. It aims to provide a deeper understanding of CRT and its application in trading, focusing on practical steps to enhance your profitability in the market. By following these steps, you will learn the fundamentals of CRT, how to identify key trading signals, and effectively utilize the concepts in your trading strategy.

Step 1: Understand Turtle Soup

• Familiarize yourself with the Turtle Soup concept, which involves trading setups that exploit market reversals.
• Recognize common mistakes made by ICT traders to avoid pitfalls in your trading strategy.
• Understand the importance of Turtle Soup in creating a solid foundation for your trading approach.

Step 2: Learn the Candle Range Theory

• Delve into the Candle Range Theory (CRT), which focuses on analyzing price action through candle formations.
• Understand the distinctions between Market Structure Shifts (MSS) and Turtle Soup to identify potential trading opportunities effectively.

Step 3: Master the 3 Candle Model

• The 3 Candle Model (3CM) is essential for recognizing market patterns.
• Identify sequences of three candles that indicate potential reversals or continuations in price movement.
• Pay attention to the significance of these models in conjunction with CRT for informed trading decisions.

Step 4: Select the Right CRT

• Learn how to choose the right Candle Range Theory setups based on market conditions.
• Differentiate between Macro and Micro CRT to align your strategy with broader market trends and smaller fluctuations.
• Recognize key levels in the chart that can indicate potential entry or exit points.

Step 5: Understand Key Timings of CRT

• Identify significant timings that affect the Candle Range Theory, such as market opening and closing times.
• Use Higher Time Frame (HTF) and Lower Time Frame (LTF) analysis to get a comprehensive view of market dynamics.
• Analyze Inside Bars as they often indicate consolidation and potential breakout points.

Step 6: Implement the Entry System

• Familiarize yourself with the Trading Sequence (TSQ) for making informed entries based on CRT.
• Develop a systematic approach to entries, ensuring you are following the established criteria from the CRT framework.
• Utilize examples from the video to practice identifying entry signals in real trading scenarios.

Conclusion

By following these steps, you can effectively apply Candle Range Theory to your trading strategy. Focus on understanding the Turtle Soup concept, mastering the 3 Candle Model, and implementing a structured entry system. As you continue to practice these concepts, you will enhance your ability to identify profitable trading opportunities and improve your overall trading performance. Consider joining trading communities or groups to discuss and refine your strategies further.