How To Select CRT Candles Perfectly - Full In Depth Guide - ICT Concepts
Summary
TLDRThis video script offers a comprehensive guide on choosing the right Candle Range Theory (CRT) candles for trading. It emphasizes the importance of focusing on confirmational CRT for beginners and intermediates, explaining its protocols and advantages over advanced CRT. The script covers key CRT protocols, including time frame alignment and timing of CRT formation and purge, to enhance trading accuracy. It concludes with practical examples of applying these protocols in live markets, advocating for a top-down analysis and waiting for confirmation before trading CRTs.
Takeaways
- 📈 Focus on Confirmational CRT (Candle Range Trading) for beginners and intermediates, as it is more suitable and increases margin compared to Advanced CRT.
- 🔍 Confirmational CRT requires adherence to at least two or three protocols for a high-probability setup, ensuring better trading decisions.
- 🕒 Importance of time in CRT, with specific times for CRT formation and purge being crucial for filtering out less accurate signals.
- 📊 Time frame alignment is vital for CRT, with lower and higher time frame CRTs working in tandem to provide stronger signals.
- 📝 Protocols for CRT include lower time frame CRT within a higher time frame, timing of CRT formation, and the presence of a higher time frame PD (Pivot Point).
- ⏳ Wait for the second candle to close within the CRT range for confirmation before trading, which increases the accuracy of the trade.
- 📉 Avoid trading CRT without confirmation; it significantly reduces the probability of a successful trade.
- 🚫 Discard CRTs that do not follow at least two protocols, as they are less reliable for trading.
- 🔑 Combine multiple protocols to select high-probability CRTs effectively, enhancing the trading strategy's success rate.
- 📚 Study and backtest different time alignments and CRT setups to find recurring patterns that can be used in trading strategies.
- 🌐 Follow the presenter on Twitter or join the telegram for daily trades and updates on trading strategies and concepts.
Q & A
What is the main focus of the video?
-The main focus of the video is to teach viewers how to select high probability Confirmational Range Trading (CRT) candles for trading.
What are the two types of CRT methods mentioned in the video?
-The two types of CRT methods mentioned are Confirmational CRT and Advanced CRT.
Why should beginners focus predominantly on Confirmational CRT?
-Beginners should focus on Confirmational CRT because it has a confirmational aspect, making it more suitable and increasing the margin of success compared to Advanced CRT.
What is the significance of waiting for the second candle to close before trading the CRT candle in Confirmational CRT?
-Waiting for the second candle to close provides confirmation, which is crucial for the name Confirmational CRT. It helps in determining the probability of the trade and reduces risk.
What is the importance of protocols in selecting a CRT?
-Protocols are important because a CRT must follow at least two or three of them to be considered correct and high probability for trading.
What is Time Frame Alignment and why is it important in CRT?
-Time Frame Alignment is the concept of aligning different time frames in a way that a lower time frame CRT is within a higher time frame CRT. It is important because it offers strong CRT signals and increases the accuracy of trades.
Can you trade a CRT if the second candle closes outside the CRT?
-Yes, you can still trade a CRT if the second candle closes outside, but it is considered a lower probability trade, and you should reduce your risk.
What is the role of the high time frame PDR in CRT protocols?
-The high time frame PDR acts as a catalyst for price expansion in the opposite direction, helping to filter out low probability CRTs and select only high-quality ones.
Why is the timing of the CRT formation and purge important in the protocols?
-The timing of the CRT formation and purge is important because it helps filter out less accurate CRTs that form at random times, enhancing the effectiveness of the trading strategy.
How should a trader approach a candle they are unsure about in terms of CRT?
-A trader should perform a top-down analysis, checking for the protocols discussed in the video. If the candle follows the protocols and the second candle closes inside the CRT, it confirms the CRT as valid for trading.
What is the advice given for traders who are new to CRT?
-The advice for new traders is to focus on Confirmational CRT, learn the protocols, and wait for confirmation before trading. They should avoid guessing CRTs randomly and trading without confirmation.
Outlines
📈 Introduction to Choosing the Right CRT Candles
This paragraph introduces the video's focus on guiding viewers on how to select the correct Candle Range Trading (CRT) candles. It emphasizes the importance of watching the entire video for a comprehensive understanding and assures improved trading accuracy. The speaker acknowledges contributions from Sham and Speculator for the video idea and thanks Romeo for insights on CRT and turtle soup. The paragraph outlines two types of CRT methods: confirmational and advanced, advising viewers to concentrate on the former due to its suitability for most traders and its higher margin potential. It also introduces the concept of trading the third candle only after the second candle closes, providing a confirmation for the CRT setup.
📉 Confirmational and Advanced CRT: Focusing on the Right One
The second paragraph delves into the differences between confirmational and advanced CRT, advocating for a focus on confirmational CRT due to its simplicity and higher success rate for beginners and intermediate traders. It explains that confirmational CRT requires adherence to at least two or three protocols and should be traded only after the second candle closes, providing necessary confirmation. Advanced CRT, on the other hand, is more complex and involves trading before confirmation, making it less suitable for inexperienced traders. The paragraph also introduces the concept of time frame alignment and promises a future in-depth video on the topic, highlighting the importance of aligning different time frames for effective CRT trading.
🕒 Key CRT Protocols and Time Frame Alignment
This paragraph outlines the essential protocols for CRT, stressing that a correct CRT must follow at least two or three protocols, ideally four. It lists some of the most important protocols, including the lower time frame CRT within a higher time frame CRT, the timing of CRT formation, and the presence of a higher time frame PD around the CRT. The speaker also introduces the concept of time frame alignment, explaining how to align different time frames for entry points based on the higher time frame CRT. The paragraph provides examples of time frame alignment and emphasizes the importance of studying and understanding these alignments for successful CRT trading.
🔍 Understanding CRT Protocols for Accurate Trading
The fourth paragraph expands on CRT protocols, discussing the importance of the timing of CRT formation and the purge, and how to filter out less accurate CRTs by focusing on specific times. It details the key times for CRT formation and purge, such as Mondays and Fridays for weekly ranges and specific hours for intraday ranges, highlighting the significance of time over price in CRT trading. The paragraph also explains the concept of time alignment, where both the formation and purge of CRT should occur at designated times to enhance trading accuracy. It encourages traders to study and find suitable time alignments through backtesting and personal research.
🚀 Applying CRT Protocols in Live Markets for Confirmational Trading
The final paragraph demonstrates how to apply the discussed CRT protocols in live markets, focusing on the confirmational CRT method. It advises traders to perform a top-down analysis, checking for adherence to protocols before trading. The speaker illustrates how to wait for the second candle to close within the CRT for confirmation and then trade the third candle, targeting the opposing end of the range. The paragraph provides several examples of how to identify and trade high-probability CRT setups, emphasizing the need for confirmation before trading and the importance of combining all protocols for increased accuracy and profitability.
Mindmap
Keywords
💡CRT (Candle Range Trading)
💡Confirmational CRT
💡Advanced CRT
💡Protocols
💡Purge
💡Time Frame Alignment
💡PD (Pivot Point)
💡Top-Down Analysis
💡High Probability Setup
💡Backtesting
💡Demo Account
Highlights
The video offers a comprehensive guide on choosing the right Candle Range Trading (CRT) candles for improved trading models.
Confirmational CRT is recommended for most traders due to its higher margin of safety compared to Advanced CRT.
Confirmational CRT requires adherence to at least two or three protocols, ensuring a more suitable trade setup.
Traders should only trade the third candle in a Confirmational CRT after the second candle closes, providing necessary confirmation.
Advanced CRT is suggested for experienced traders and involves trading before confirmation, which is more challenging.
Time frame alignment is crucial for CRT, with specific protocols for different time frames like weekly, daily, and 4R.
The video emphasizes the importance of waiting for confirmation before trading CRT, increasing accuracy and precision.
CRT protocols include lower time frame CRT within a higher time frame, timing of CRT formation, and timing of The Purge.
High time frame pdra is a key protocol, acting as a catalyst for price expansion in the opposite direction.
Combining multiple protocols increases the probability of selecting high-quality CRTs for trading.
The video provides examples of how to apply CRT protocols in live markets for effective trading strategies.
Mistakes such as randomly guessing CRTs or trading without confirmation are highlighted as areas to avoid.
The video includes case studies demonstrating the application of CRT protocols in real market scenarios.
Traders are advised to backtest and forward test any trading strategy, including CRT, before live trading.
The video concludes with a reminder to follow the presenter on Twitter or join the telegram for daily trades.
The video is part of a 10-video series on Candle Range Theory, providing in-depth knowledge for traders.
Engagement is encouraged through comments for interesting ideas or questions related to the trading strategy.
Transcripts
one of the most common questions about
CRT is how to choose the right candles
this video offers a comprehensive answer
to that question by watching it in its
entirety without skipping you'll see a
significant and precise enhancement in
your trading or CRT models you'll gain
complete Clarity and confidence in
selecting CRT correctly that's my
guarantee to you a quick side note I do
want to shout out sham or Speculator for
the video idea and also Romeo for
shedding light on CRT and turtle soup
also if you'd like to keep up to date
with my daily trades follow me on
Twitter or join my telegram okay now
let's get into the video selecting CRT
correctly there are two types of methods
for selecting your
CRT one is confirmational CRT and the
other is Advanced CRT
before I explain both I want to
emphasize that most of you should focus
predominantly on confirmational CRT and
from now forget about Advanced the
reason is that as the name suggests
confirmational CRT has a confirmational
aspect to it making it more suitable for
you it will increase your margin better
compared to Advanced CRT once you become
more experienced and have more chart
time you can learn about Advanced CRT
and how to use it effectively at that
point it will be more
beneficial however for now focusing on
confirmational CRT is the right decision
now let me explain the characteristics
of each one to you the first point to
consider is confirmational
CRT as mentioned earlier you should
primarily focus on this type of CRT and
here's why one key aspect is that it
must follow all protocols while it
doesn't need to adhere to every single
one it should follow at least two or
three if it doesn't meet at least two
protocols it should not be used next you
will only trade the third candle in this
CRT this means waiting for the second
candle to close before trading the CRT
candle this step provides confirmation
hence the name confirmational CRT the
closure of the second CLE is crucial if
it closes inside the CRT it is
considered high probability provided it
follows the protocols if it closes above
or below the CRT the probability
decreases a lot of people think you
can't enter the trade of incluses
outside but this just isn't true it
doesn't become invalid but you should re
reduce your risk if it closes below or
above this approach involves trading
only the third candle and waiting for
the second candle to close it is a
simpler version of CRT because you wait
for confirmation before trading making
it easier than Advanced CRT types this
is why most of you should focus on this
type of CRT trade the CRT only after
confirmation which forms after the
second candle Clos es ignore the first
and second candles wait for them to
close then perform a top-down analysis
on the higher time frame and lower time
frames to check if the CRT follows its
protocols once confirmed you can trade
it on the lower time frames focusing
solely on the CRT type will
significantly improve your accuracy with
confirmation before trading you'll see a
clear Improvement in your CRT models
enhancing both accuracy and precision
the second type of CRT is the advanced
CRT as I mentioned before you should
forget about it for n because it
requires more experience more chart
analysis and more intuition let me
explain the key aspects of it first it
must follow the protocols meaning it
must follow at least two or three of
them this Advanced version of CRT as the
name suggests involves trading the CRT
before confirmation when trading this
CRT you won't have any confirmation
making it a more challenging version
that's why I do advise against trading
this type of CRT if you're starting
instead wait for confirmation and then
you can trade both the second and third
candle this type of CRT requires more
skill and intuition if you are a
beginner or intermediate student it's
best to forget about Advanced for now so
these are the two types of CRT the
confirmational CRT and the advanced CRT
this video's main focus will be on
confirmational CRT the reason for this
is that most of you are either beginners
intermediates or semi-advanced students
it's better for you to concentrate on
confirmational CRT alone you can
transition to Advanced CRT once you gain
enough experience and intuition from
chart time however for now the best
decision is to focus solely on
confirmational CRT there's nothing wrong
with this approach it actually has one
of the best options focusing on
confirmational CRT alone is more than
enough to make you consistent and
profitable I can promise that
okay now let's discuss the protocols for
CRT as I mentioned before every CRT must
follow at least two or three or ideally
four protocols if it doesn't follow at
least two protocols you shouldn't use
that CRT and should dismiss or disregard
it for a CRT to be considered correct it
must follow at least two or three
protocols
some of the most important protocols for
CRT are as follows a lower time frame
CRT within a higher time frame CRT which
could be in the form of a big bulgy CLE
or a big CRT out of this list this is
one of the most important ones I'll
explain each one in detail but for now
we'll just name them another protocol is
the timing of CRT which refers to when
the CRT is formed additionally we do
have the timing of The Purge of the CRT
this is crucial meaning at what time the
purge actually happens this is also very
important another key protocol is that
there must be a higher time frame pdra
around the CRT and a lower time frame
refined PD around it these are some of
the CRT protocols that you should look
for to find the correct
CRT okay now before I actually explain
the CRT protocols to you let me give you
a brief introduction to the time frame
alignment now I know that some of you
are asking on Twitter for me to discuss
the time frame alignment on time
alignment this is a very important topic
so I am going to make sure to make
another separate in-depth video about it
too but for now let me give you a brief
introduction to it okay so in front of
you you can see some important time
frame alignments for
CRT let me explain them to you now if
you're using the first protocol which
involves using the lower time frame crrt
within the higher time frame CRT here's
how it works if you're using the weekly
the monthly should be used as your
higher time frame CRT similarly if
you're using the daily as the lower time
frame then your higher time frame should
be the weekly and so on on the right
hand side if you have choosen the
monthly as your higher time frame CRT
your entries should be on the daily if
you've choosen the daily as your higher
time frame CRT then your entries should
be either on the 1 r or the 2R for using
the 4r time frame as your high time
frame CRT you will be using your
15minute chart as the low time frame
entry this is what we call time frame
alignment you might want to pause this
video and take notes because this is one
of the most important topics in ICT and
CRT Concepts so the first protocol
involves using a lower time frame CRT
within a higher time frame CRT this is
an important protocol because it offers
some of the strongest CRT signals to
apply this method start by exam in the
higher time frame CRT candle with the
help of time frame alignment wait for
the higher time frame CRT to show a
significant shift then move to the lower
time frame look for a large notable
candle that has broken through the CRT
high or low if such a candle is present
it indicates a high probability CRT
setup this type of CRT often provides
reli results with at least a 50% success
rate by studying your charts with this
protocol you'll notice that many
significant tops and bottoms were formed
using this logic in summary the protocol
involves waiting for the higher time
frame CRT to be breached then looking on
the lower time frame for a substantial
candle that has breached the CRT high or
low this lower time frame CRT will then
be used to Target the opposing end of
the range it's a simple but highly
effective approach here's another
example of this protocol observe a
higher time frame CRT with the low of
the CRT was breached on the lower time
frame the brdge was marked by a large
candle this makes it a lower time frame
CRT setup we then wait for the lower
time frame CRT to be purged and Target
the opposite end of the range which is
exactly what occurred in this example
you should study this CRT method as much
as possible it's one of the most
significant approaches in CRT trading
another crucial CRT protocol is the
timing of the CRT formation as the name
suggests it is based on time we need to
observe the CRT being formed at specific
key times if it doesn't form at these
designated times we will disregard it
this protocol is effective in filtering
out less accurate and less precise CRTs
that form at random times the key times
for CRTs include the following for the
weekly range the highest probability
CRTs are typically formed on Mondays and
Fridays on Monday a large prominent
candle formed
and then the price either on Tuesday or
Wednesday will test the high or low of
that CRT for the rest of the week the
price will expand higher or lower to
reach the opposite end of the range a
similar pattern is observed with the
Friday CRT for intraday ranges or 4r
CRTs the times include 5:00 p.m. 900
p.m. 1:00 a.m. 5:00 a.m. and 9:00 a.m.
you do have Shams 3 a.m. model which has
been shared on his channel and on his
Twitter which relies on the 5:00 p.m.
and 900 p.m. CRTs now the 5:00 p.m CRT
candle aligns with the
cbdr and the 900 p.m. aligns with the
Asian range which is why it's highly
effective I did also share my 9:00 a.m.
model if you want to learn more about it
check out my recent video as mentioned
earlier the the highest probability CRTs
are formed at specific days of the week
and specific times of the day with CRT
and ICT Concepts time is of Greater
importance than price therefore priority
should always be given to time over
price by using this CRT protocol you can
filter out low probability CRTs from
your trading combining it with other
protocols will signific ific anly
increase your profitability another
important CRT protocol is the timing of
The Purge with this type of CRT we not
only wait for the CRT to form at a
specific time but also for its Purge to
occur at a key time if the timing of The
Purge is not correct we disregard that
CRT this is known as time alignment time
alignment involves using these two prod
protols together ensuring that both the
formation and The Purge of the CRT
happen at the designated Times by
waiting for both events to align we
enhance the accuracy and effectiveness
of our trading strategy here we have
some important time alignments this is
different from time frame alignment
where we align different time frames in
time alignments we align different times
for the the timing of the CRT and the
timing of The Purge of the CRT for
example if the CRT is formed in week 1
of the month you wait for the high
probability Purge to occur in week two
similarly if the CRT is formed on Monday
you wait for The Purge on Tuesday or
Wednesday if you're using the 5 p.m. or
9:00 p.m. CRT the high probability Purge
occurs at 3: am and so on there are
other examples as well which I have
covered on Twitter these alignments are
not absolute and are not the only ones
there are many more time alignments that
you can use which you can't find by back
testing different time alignments for
instance you can wait for the CRT to
form at certain times and then look to
see when these purges occur note these
times and check your data
to see if there's a recurring theme or
pattern you can then use these time
alignments for yourself other good Purge
times that I will mention now are 1:00
a.m. 3:00 a.m. 6:00 a.m. and between 8
and 10: a.m. it's up to you to study
this on your own and find the perfect or
suitable time alignment for yourself
I've given you a few examples here but
as I said before these are not the only
ones there are many others that exist
and you should find them on your own
through studying and back testing
another important CRT protocol is the
high time frame pdra although it is a
bit cliche it's very important it's
meant to be boring which is why we
continuously use it the high time frame
CRT acts as a catalyst for an expansion
higher in the opposite direction some of
the most important CRTs use this
protocol to effectively filter out low
probability CRTs and select only
highquality ones combine all the
protocols I've shown you using all these
protocols together allows you to select
CRTs correctly and ensure their high
probability the high time frame pdra can
come in two forms the inside pdra and
the outside pdra you can clearly see
examples of the difference between the
two of them one type is when the P one
type is when the CRT has tested the pdra
and the other is when the CRT hasn't
tested it but the purge of the CRT
occurs in the second candle and tests
the PD out of these two the highest
probability CRT is the outside PD
because only the second candle of the
CRT range tests the PD this makes it a
high probability CRT with the high time
frame pdra acting as a cataly for Price
expansion higher as I mentioned before
you're going to combine all of these
protocols and use them together this way
you'll end up with a higher probability
CRT in this example we can see that on
the higher time frame we have one CRT
and on the lower time frame we have
another the protocols being followed
include a lower time frame CRT within a
higher time frame CRT we can observe
that there is a PD around the CRT on the
lower time frame which takes the form of
an order block Additionally the timing
of the CRT is also correct meaning the
CRT has formed at the right time this
can be seen on the chart all also The
Purge of that CRT happened at the right
time which is why the CRT on the lower
time frame was high probability now I've
explained every important protocol to
you but the video doesn't end here the
most crucial part is yet to come I'm
going to explain how you can use these
protocols to find and trade the
confirmational CRT which is the main
focus of this video you however before
we dive deeper let me clarify some key
points don't try to randomly guess CRTs
I see people on Twitter and other
platforms selecting and guessing
different CRT candles and they're doing
it randomly this is not the correct
approach if you guess CRTs randomly it
won't work for you instead use the
protocols to find the CRT accurately
another mistake people make is trading
the CRT without confirmation this is one
of the worst things that you can do you
need to wait for confirmation to occur
then wait for the second candle to close
before you trade the CRT focusing on
this St aloon will significantly
increase your accuracy you can then
trade the third Candle on the lower time
frame using the sequence which
essentially involves model one entries
and kod entries now let me give you some
examples this is one of the most
important parts of this video because
I'm going to teach you how to use the
knowledge and Theory I've given you in
the live markets on the left side we've
got this price action and a candle you
might not know whether to trade this
candle whether it has been considered a
valid CRT or whether you should use it
at all this means that you're in doubt
or have some confusion to resolve this
you'll do a top-down analysis and use
the protocols I've provided look for
these protocols in the markets and check
if the candle follows at least two or
three of them to be considered correct
next wait for the second candle to close
inside the CRT if it closes outside you
can still use it but it will be a lower
probability CRT so so you'll need to
decrease your risk if it closes inside
the CRT then that would be optimal when
the second candle closes it confirms
your CRT as correct you can then trade
the rest of the candles or the third
candle of the CRT targeting the 50% of
the range and the opposing end of the
range it really is as simple as thought
look for the protocols wait for the
second candle the close and only then
trade the CRT here we've got another
example with this price action and this
candle you don't know if this candle can
be considered as a correct CRT or not so
again following the same steps
repeatedly you'll look for the first
protocols after confirming that it has
at least two or three of the protocols
you'll wait for one side of the CRT to
be purged and then the CLE to close
inside the CRT once it closes inside the
CRT and follows all of these protocols
it confirms your CRT it then becomes a
valid confirmational CRT for you and you
can trade the third candle of the CRT or
the rest of the candles targeting the
opposing end of the range here's another
example we've got this candle right here
you're not sure whether it can be
considered as a CRT correctly so what
you're going to do is wait for one
inside of the CRT to be purged and then
for the price to close inside the CRT
once the second candle closes you're
going to trade the third candle and
Target the opposing end it's basically
as simple as that there really is no
rocket science behind it you're just
going to use all of the protocols and
then wait for one side of the CRT to be
purged and the candle to close inside
the CRT then you're going to trade the
rest of the candle Les of that
particular CRT in this example you can
see that the CRT has taken a low once
the low of that CRT was purged it also
tested an order block here and then the
candle closed above which confirms our
CRT this makes it a confirmational CRT
and our objective is to trade the rest
of the Cal here's another case study for
you you can see that the C CRT is tested
in an order block the timing of that CRT
is 5:00 a.m. which makes it a high
probability CRT Additionally the timing
occurred at ay time which is 9:00 a.m.
the second candle closed above and
that's basically it we trade the rest of
the candles after that Traders I hope
you enjoyed this video on how to select
high probability CRT candles I upload an
indicator video every Wednesday and an
ICT Concepts video every Sunday we're
currently in the middle of a 10 video
series on condle Range Theory Traders I
hope you understood this trading
strategy if You' have any interesting
ideas or any questions please write them
down in the comments be sure to back
test this or any other trading strategy
you find on flames and trading once you
are satisfied with the back testing
results be sure to forward test your
favorite strategy on a demo account only
after that can you trade with it on a
live account if you haven't done so
already please consider liking this
video and subscribing to my channel to
not miss out on future content as I said
earlier if you want to keep up to date
with my daily trades follow my Twitter
or join my telegram thanks for watching
till next time happy Trading
[Music]
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