4H CRT Model - Futures/Indices - High Probability Model

Summary

In this video, the instructor presents a detailed explanation of the 4-hour CRT model specifically designed for futures trading. The model involves identifying a 6 a.m. 4-hour candle, using a lower 15-minute time frame to refine entries, and applying key confirmations like a timed purge and key level analysis. The video outlines a strategy that combines multiple indicators and time frames, emphasizing the importance of confirming setups with tools like Fibonacci, order blocks, and fair value gaps. It also highlights the significance of managing risk and optimizing trades with partial exits and refined entries.

Takeaways

• 😀 A 4-Hour CRT model for futures trading is introduced, focusing on timed candles and precise entry points.
• 😀 The key timeframe to focus on is the 6 a.m. 4-hour candle, which is used to establish a range for subsequent trades.
• 😀 A 15-minute CRT at the highs or lows of the 6 a.m. 4-hour candle provides a crucial confirmation for entry.
• 😀 The 'Purge' occurs between 10:00 a.m. and 12:00 p.m., which is a critical time for market movements and strategy execution.
• 😀 The model suggests entering trades based on the second 15-minute CRT candle or using lower timeframes (1, 3, 5-minute) for precise order block entries.
• 😀 Three key confirmations make the setup a high-probability trade: timed CRT, lower time frame CRT within the higher time frame, and key level confirmation.
• 😀 Key levels, such as daily fair value gaps or significant highs/lows, should be identified to increase the probability of a successful trade.
• 😀 Example trades demonstrate how price action can be utilized, with a focus on the 6 a.m. candle and subsequent price movement to form a strategy.
• 😀 The strategy includes using lower timeframes (15-minute, 5-minute, etc.) to identify price action and set precise entry points based on key levels.
• 😀 Despite the high probability nature of the strategy, the script highlights that this is not a 100% win-rate method; losses can occur, and risk management is essential.

Q & A

What is the main focus of the 4H hour CRT model in this video?

The main focus of the 4H hour CRT model is to apply it to futures trading, specifically using a 4-hour time frame to analyze price action and identify high probability setups.

How does the 4H hour CRT model differ from the 4x1 model?

The 4H hour CRT model is very similar to the 4x1 model, but with slight changes in timeframes and some other factors. The 4H model focuses on a 6 a.m. 4H candle and a specific range of 15-minute CRT setups, while the 4x1 model might use a different approach.

What is the significance of the 6 a.m. 4H candle in the model?

The 6 a.m. 4H candle is crucial because it serves as the starting point for locating the larger 4H range, which is used for further analysis and for setting up the 15-minute CRT at the highs or lows of this range.

What is the Purge in the context of this strategy?

The Purge refers to the price action that occurs between 10:00 a.m. and 12:00 p.m., where the market typically retraces or 'purges' to specific levels. This period is important for confirming the setup in the 4H CRT model.

What is the role of key levels in increasing the success of the model?

Key levels, such as daily fair value gaps or highs and lows, are essential for confirming the validity of a trade setup. Using these levels increases the probability of success by providing clear areas of support or resistance for price to react to.

How do you enter a trade according to the 4H hour CRT model?

You enter the trade when the second candle of the 15-minute CRT closes, or you can refine your entry further by using shorter time frames (e.g., 5-minute or 1-minute charts) and order blocks to get a more precise entry.

What is the importance of the 15-minute CRT in this strategy?

The 15-minute CRT is important because it operates within the larger 4H range, confirming price action at the highs or lows. It provides a more refined entry signal, which increases the probability of a successful trade.

Why is the 4H hour CRT model considered a high probability setup?

The 4H hour CRT model is considered high probability because it involves multiple confirmations: a timed 6 a.m. 4H candle, a timed purge between 10:00 a.m. and 12:00 p.m., a 15-minute CRT within the 4H range, and confirmation of a key level.

What should traders be cautious about when using the 4H hour CRT model?

Traders should be cautious of over-expecting success, as the strategy is not a 100% win rate model. There are times when trades may not work out, and it's important to understand that not every trade will be a winner.

What is the role of order blocks in refining trade entries?

Order blocks help refine trade entries by identifying areas of strong price action, where price may reverse. When combined with the 15-minute CRT and key levels, order blocks can offer better precision in timing the entry for the trade.