The Most PERFECT Trade You Will Find Everyday | Candle Range Theory (CRT) Advanced

In today's video, we are going to be covering what a perfect CRT will look like and how you can find that exact setup, the best possible one every single one. Now, we've done a lot of videos on CRT and I've showed you guys kind of the basic way to really use it, but there are a lot of advanced things that you guys can do to make the setup even better. And in today's video, we're going to discuss exactly how you can find those things like heat levels, order blocks, every single thing that goes into it so you guys can trade it as perfectly as possible. And by the end of this video, you guys should have everything you need to trade this setup as perfectly as possible. So, with all that being said, let's get directly into the charts and let me break down the exact way that I trade it so you guys can copy it, too. All right, so let's get directly into understanding everything about this concept. Now, I have done tons of videos on what candle range theory or CRT is, so I'm not going to go fully, fully in-depth into the strategy itself today. If you guys do want to watch that, then you can go back and watch one of my other videos, but today I want to break down that exact perfect setup. Knowing when to skip, knowing when to size heavier or size smaller, all those big things that literally make the difference between you having a high win rate or a high risk-to-reward versus being unprofitable, all right? So, before we get started, just a quick recap on CRT, ladies and gentlemen. So, CRT is a very simple concept and the reason why so many people trade it is because you don't need all this intuitiveness and all this crazy stuff for the strategy. You literally just need to know the setup and your entry point and you're good to go. That's all you need. With CRT, all you're going to do is you're going to go on the 15-minute, the 30-minute, or the 1-hour time frame and all you're doing is marking out the most recent candle's high and the most recent candle's low. Now, what is the significance of these two levels, ladies and gentlemen? It's literally the areas where liquidity is packed. So, the most orders in the market are sitting at these highs and all the way at these lows and that's going to be where we go to pick up orders and deliver them to the opposite end of that candle. So, in this case, price comes and breaks that high and gets an immediate reversal back down, right? So, it closes back underneath the high after breaking it. Essentially, what we just did on this candle is we came, we picked up the sell-side orders, we picked those all up, but who are we going to deliver those orders to? Who is our buyer? The best example I like to give is, for example, let's say you have a car that you want to sell, all right? And you have the supply, but someone's got to buy it, right? Who are you going to sell to if no one's there to offer some. So, the buyers are usually sitting at this low right here, and you got to come and meet them somewhere in the middle or even directly at their asking price and meet them and give them the product. So, that is what CRT is. We come and sweep the levels, right? With the sell side or buy side, depending on which direction you're playing. The candle must close, the body of the candle must close back inside the range, and when it does that, we know that price wants to make a move all the way back down to the opposite end of that candle. Now, for the entry, ladies and gentlemen, you're going to enter on the break of this middle candle and target a move down to this low. Again, not going to go fully in depth. If you're a little confused and it's your first time seeing the strategy, go back. I have like 20 videos on this concept, so I'll explain them more in depth. But, instead of what I want to focus on is a few things that people really struggle with. So, the first thing we'll start at is bias and trend. This is the one I see the most confusion with. So, I always say take the CRTs that are with the trend, and that's the simple way to do it. However, there are different things that you can use in order to get the best possible CRT. And this includes things like liquidity levels, for example, 1-hour highs and lows or anything along those lines, order blocks on the higher time frame like the hourly or really just understanding the pure price action aspect of it. But, we will go into that more in depth. So, when I say bias and trend, let's say the market is moving in a formation that looks similar to this. We have highs and lows. This is the 1-hour time frame, okay? And price comes and sweeps it. So, we're technically in an uptrend, correct? The market is making higher lows, higher highs. But, it sweeps that high, and then we get a massive rejection all the way down. So, a lot of people get caught right over here. So, what I will do is I will check my bias on the higher time frame like the 1-hour time frame or something along those lines. And from there, ladies and gentlemen, I will understand if we just swept a key level, then I could definitely flip my bias. Even though we're not making lower highs and all these different things like that, I can still flip if we are taking out order blocks or key liquidity levels. Again, if you guys don't know what that is, I have videos covering liquidity, order blocks, all that stuff on YouTube, literally a one-stop shop for all of it. So, you guys just watch that. It'll explain everything. But essentially, that is exactly what I do sometimes. Sometimes people are like, "Wasn't the bias bullish? We're making higher lows and all this." But in reality, we got a sweep or we tapped an order block and we rejected, and that is why I played a bear CRT against the trend technique. Now, we'll cover more of this on the charts in a second, but let's go into the other ones. The next thing I want to talk about is session times. Now, the market has specific sessions where the volume is mostly packed, and that's going to be in New York session from like 9:30 a.m. Eastern time until about I want to say 12:00 to 1:00 p.m. Eastern time. And then after that starts becoming slow, starts becoming a lot choppier, it struggles a lot more. So, my best trades are found from 9:30 when the market opens until about 12:00 to 1:00. Asian session, which is the evening session, will be from around 7:00 to 10:00 p.m. Eastern time. Now, 8:00 p.m. Eastern time is where I personally trade the most, but 7:00 to 10:00 is going to be the cleanest action you can get in the market. And then there is a third session, which is called London session, and this is where you guys can find the late late night session, right? It's going to be around like 4:00 a.m. Eastern time and all these different times, which also does move clean, but it's a lot slower, too. So, again, you have Asian session, all right, which is going to be around like 7:00 to 10:00 p.m. Eastern time, okay? And then you will have the New York session, which is going to be 9:00 30 until about 12:00 to 1:00 p.m. Eastern time. Now, I usually cut it off around like 1:00. And then you will have the London session, which is going to be around I want to say from 4:00 a.m. Eastern time all the way running until about 9:00 a.m. So, those are the three keys with understanding what times are best to trade because a lot of people are just taking CRTs in the middle of like no man's land, right? There's no volume, there's nothing. How do you expect to get follow through? Now, if we want to rank these three sessions, I think New York is the best. However, New York also has the most volatility. Some people prefer a very slow trading environment. They want to watch that trade form A through Z. Then you move into Asian. This is the perfect mix of fast and slow. It's not too fast, it's not too slow. So, a lot of people prefer Asian session, and I personally trade Asian when New York is just a lot choppier or anything is just not moving clean. And then London will be the slowest moving one, and a lot of people prefer that. They want to see the trade move a lot slower. They want to take their time. That is all personal preference, so play around. Maybe Asian session is your one, right? Maybe New York is, maybe London is. I personally do a mix of all of them. Whenever I see one is not moving clean, I'll just trade the next. That is session times, ladies and gentlemen. So, have depth with you at all times. You want to understand everything that goes with the timing. And in order to get the best possible trade, that's the best and easiest way you can really go about that. Now, let's move on into our third one, which is price action. Okay. This is a lot harder, and I will explain exactly what price action actually is, so you guys can understand this. Price action is when I'm watching on the lower time frame. So, a lot of people say, "Why can't I just trade CRT on the 15-minute time frame?" The reason you can't do that is because the 1-minute time frame, the two, and all these lower time frames tell us the real story of what's happening. So, let's say the market opens up, and your 15-minute CRT looks like this. It looks great. There's no issue. But when I go on the 1-minute time frame, what I'll see is, "Okay, we have one massive green candle up, and then one massive candle down, and then one back up, and then one right back down, and then one right back up." And I'll show you guys an example on the live chart, so you guys see what I'm talking about. But when you see candles of this nature, or you see candles that look something like this, massive wick to both sides. Okay, massive wick right here, flip, and then another massive wick right here, flip. These are setups that I take a look at, and I'm like, "Wow, like we're chopping around. This is not going to get followed. There's just ranging." This is really important to understand. So, that's one thing that I will show you guys an example of, so you can see when it sucks, and there might be the best-looking setups on the CRT ever. But if your price action sucks, I'm sorry, you're taking a trade in something that's just going to screw you over. It's just not going to be good at all. But once again, we'll move on into that in a second. But now, I want to cover time frames, because that is just leading into my point that I was talking about, right? We mix up our time frames perfectly. Now, I use the 15 and 30 and 1 just for the CRT. Okay, so 15-minute, 30-minute, and 1-hour for the CRT itself. Some people like the 4-hour. Some people like all this different stuff. So, you can play around and the setup works on all these time frame. I personally just find that these three are the best and that's what I stick with. I'll find one setup, whichever one forms first. A lot of people say, "Well, what if the 15, 30, and 1 all form together?" In that case, I'll go for the lowest one because the 15-minute usually has the easiest follow-through. All right? So, I don't want to go for anything with too much range. Like, let's say if the CRT is on a choppy day and your range is like just so difficult to get a move, I'll go for the tightest range possible. That's the one that I want to choose out of these three. So, you'll have these three time frames open. Whichever one forms first, you'll go for that. And whichever one has the tighter range, if all three of them have it, is the one you will trade. And I'll show you guys that example again in a second. Now, news and days of the week, ladies and gentlemen, this is another big one because a lot of people struggle with this. I am going to give you the certain days that will suck in trading and you want to avoid them altogether. Okay? So, no news Monday. This is the biggest one you guys get screwed over on. I'm telling you right now, if you trade on a no news Monday, you're asking to lose money. All right? I'm very cocky when it comes to my trading. I've traded no news Monday so much that I take the risk and even for me it's my worst trading day possible. A lot of you guys don't have that experience and you rush into no news Mondays and you're like, "Oh my goodness, why did the CRT not work?" Well, because no news Mondays are garbage across the board always be garbage. So, you choose to trade a no news Monday, accept the loss. Expect it. If you don't choose to trade it, then you're safe and you come back the next day and you're fine. Now, the rest of the week usually is fine, but there's another big caveat, right? Where essentially we don't have news on a certain day. We don't have red folder news. It will move very garbage. So, for example, last week we had no red folder news. We had just one day with orange folder news and the whole week was garbage. I look at all these things and I take a look and I'm like, "You know what? This week is just not going to be good at all." So, I went into that week prepared that it was going to be choppy, it was going to be messy. Then you had other people that don't check these things and then you go into the week and you're like surprised that it's choppy and I'm like, "Guys, you need to check." Whether it be on, for example, you'll go on forexfactory.com, which is just a free website, and you check the calendar. And if you're in the Discord, I post it for you guys so you can see all that stuff and what's coming up. Check whichever day has red folder news is the day you will have the best CRTs in the market. Okay? If it has no red folder news, maybe best to just skip it all together. Just be aware of the days, be aware of the news, and if you don't know that, then I will again, I made a video on that previously. So, check the day of the week, check the news. These are all very big important things to plan out your week so you don't just all of a sudden be surprised in sizing heavy and get cooked and blow your accounts, right? Now, this leads me into my last little point that I had before we head on to the chart. Breaks and retests. A lot of people are confused on this concept because they say, "Well, in one video you said to enter on the break. In another one, you said to enter on the retest." Now, there's two ways to enter your trade. You can either enter on the break of this middle candle, which is giving you a guaranteed entry, but you can get faked out. What it might do is you enter, wicks up a little bit, hits your stop loss, and then gets followed through on the second retest. So, if you're okay with missing the trade potentially, then you enter on the retest, a lot safer option. Okay? You wait, you'll see what price does, maybe reverses back up a little bit, and then comes back down and you re-enter again, or maybe it drops a little and comes back up and retests your level and then gets another rejection. Way safer, way higher win rate, way more beautiful, but you will probably miss a lot of setups that just get the direct break and boom, they're out. So, you choose. If you want to take a little bit of a lower win rate, but you miss a lot of clean CRTs, then you go for a retest. If you want to just enter wherever and just go for it, then that's the break and you will have a lower win rate. That's just what it is. So, one more time, lower win rate, but every single trade is guaranteed is the break, and higher win rate for playing a retest is going to be the best possible option for a lot of newer trader. I personally do a mix of both. If it's a lot choppier day, I'll wait for a retest. If I see it's a lot cleaner, I'll just go for a break. So, that is some key components that I want to talk about in this specific video. But now I want to head to the charts and show you guys how does this all look in real time when you're trading the actual market. So, let's flip over to TradingView. Let me show you guys a few examples and let's really understand this more in depth. So, ladies and gentlemen, here we are on the charts for MNQ and I really want to break down from start to finish exactly what I'm taking a look at here, all right? So, the first thing is I'm marking out my key levels. So, any point where price had a strong reversal, like for example, we had a pullback and strong reversal, this is one of them that I'll mark out, right? And all these different points. Now, you take a look at this chart and you see, "Wait a minute, we're making lower highs, right? So, this is bearish only. I should try shorting this, correct?" Okay, I can understand that, but what you don't understand is we just came and took out a very key hourly level. Not just one, we also had another one right here that price took out. So, whenever I see something like this, right? That means the buying orders have been picked up and we had a strong reaction. We broke that low and insta candle reversal back up. Okay? So, I've got my bias figured out. Right now I understand that we just took out a key level and we had a very, very strong reversal. All right? So now, I can understand a bullish CRT. So, whenever I go on the lower time frame right over here, what you will see is you have a nice little 30-minute CRT, for example, right here, hourly and all these different CRTs that are forming. So now, when I play a bullish setup, I watch the price action is what? It's holding well. Breaks the low, reverses. Breaks the low, reverse. So, what's that essentially showing me is that, "Look, the buyers are sitting there." We tried to pull back, beautiful pump, right? Leading up to the break of that middle candle, beautiful, beautiful reactions every single time. So, when it breaks that middle candle, this is an understandable entry. I can see why I would play against the trend compared to usually where you're just like, "Oh, higher lows, higher lows, whatever." Sure, it's the easy way to play it, but not always what you want to look for. So, when you enter the CRT, ladies and gentlemen, this one adds up a lot more. You let this trade ride perfectly. You don't have to worry about too much on it, right? You place your stop and TP, and you let it do its thing. Okay, a lot of people were confused when we played this one. They were like, "How? Why? Why did we take that?" Correct? But the hourly CRT, the 30-minute, whichever one you played, they both got followed through because it took out a liquidity key level. So, this just introduced a perfect example of everything we just talked about. Number one, let's come back to that for a second. We had our bias and trend. So, we figured that out. Where did we sweep key levels? Was there order blocks or something that engaged with us to want to take this trade? Session times. It's not too late in the session at this moment, right? It's around 10:58, which is totally fine. Price action. Another key one. It's leading up properly to it. It's showing me that bullish reaction every single time it's pulling back, it's respecting. Back-to-back green candles. It's showing me all these different things. There is no chop specific. Time frames. There is a 30-minute, there's a one. I personally prefer playing the one that has a little bit better setup, and I go for that one instead. Okay? News and day of the week. It's a Friday, it's not a Monday, there's no issues, there wasn't news as well, so everything's fine. And the break versus retest. I would rather play the break, however, you can go both ways. You can either play the breakout, or you can wait for price to get that first initial failure, and break a second time, or break out and pull back to that midpoint, and that's where you enter. So, one more time, when you take a look at this, you have everything, right? You have your breakout, you have your retests twice, whichever one you want to go for. So, three different ways you can enter that trade. Price action is respecting. You had your different time frame CRTs, you had your liquidity. So, this aligns in a much more advanced sense. This is a lot more thought that goes into the setup. However, sometimes, if you guys want to achieve instead of like, let's say a 65% win rate or 60, and you want to go for 75, 80, something way higher than that, these are the things that I take a look at, right? You can obviously achieve it in some months without this, but you want to get the best possible results, this is going to help you a ton. Now, I I to take a look at another example, this time with a hourly order block and this is going to explain the same exact idea one more time. So, here is another example to the opposite end. So, now you're taking a look and you're like, okay, we took out lows here. Now we're making a higher lows every single time. But, what are you missing over here for a second, right? Price has this massive hourly order block. First time tapped, rejected. Second time tapped, rejected. Third time came close, rejected. Fourth time again. So, we see that every time it's tapping this range, guys, it's getting a tough rejection. So, why would I long in this range? This is why the higher time frames are so important. So, understanding all this what I want to do is I want to drop down to a lower time frame and I want to see what do we got going on the lower time frame that can give me a setup and I can trade that properly. This one has a little bit more that goes into it where people could be a little bit more confused, right? You do have bullish CRT, so that technically works out as well. But, if we watch this setup a little bit more clearly the best one that's going to come in is going to be the uh bear CRT because we're rejecting off that range. So, let's watch this one play out a little bit closer and see exactly what's going on, all right? So, we give that 1 second. There was a nice 30-minute one right there. So, that one plays out. Let's see. And then you also have nothing on 15. You have a nice hourly right here. So, you could technically play this downside CRT even though technically it looks like we are in a very strong uptrend. Okay? So, if I'm going to play this setup right here this is essentially what your trade will look like. You have TP at the lows, stops right here, and we're going against the trend, right? This is against what the basic idea of CRT is. But, how we find the perfect setups. So, what would you do from here? You would let your trade ride, let it do its thing. The chop is not really crazy. Nothing wild is going on here. And you let it do its thing until you get full TP or full stop loss. Okay? So, that is the game plan behind it. A lot of people might try a long CRT here and get kind of cooked. But, that higher time frame level is a lot more important for us to understand in in to get these great setups. These are the criterias for finding the best setup that you can in the market every single day. Now, it's a lot harder. It's supposed to be harder because there's a lot more that goes into setups than just blindly entering, right? But again, the best setup is still going to be the first trade of the New York session with the trend. That's going to be your best setup. You want to go for one CRT or maximum two if you really want to. And follow all these rules, ladies and gentlemen, you will be good to go. There's not really much to worry about with this setup. It's so plain simple, nothing really crazy, and it's really easy. Now, one little tiny thing that I missed talking about right here is the choppiness. So, if you see a certain trading day with massive green candle like this followed by red, and then a red candle followed by a green, and then a wick all over the place. Both sides are just wicking. Massive green, massive red, massive green, massive red. Your CRT is not going to get followed through. Look at all these breakdowns fail. Breakdown fail. Breakdown fail. Breakdown fail. Another one fail. This is intuitiveness a little bit that you need to understand. There will be days like this that are super choppy, and you just look at it and you're like, you know what? There is just no point in me playing that setup. What can I say? So, that's a really big deal with what I want to talk about because again, these little tiny things just make you a better trader. Do they mean that you have to necessarily use them for sure? No, it doesn't have to. But if you want to find the best setup you can, this is how it's going to be. So, again, I know this might have been a lot to really comprehend, but again, this video is available for you guys to rewatch anytime you want to. And if you guys do really have any questions, feel free to join that Discord in the bio. It's free. You guys can join in and ask people to help you out a ton. Everybody's pretty much active in there 24/7. But like I said, we're going to be covering more advanced concepts so you guys can be the best trader possible, and this was really the start of that. So, I hope you guys enjoy this video. I hope it helps you guys understand everything a little bit more clearly, and study this one really well because it can make the difference between being profitable and non-profitable. So, with all that being said, I hope you guys enjoyed. I will see you guys back in the next one. If there's any questions at all, feel free to drop them in the comment section below, and that's pretty much it. Take care everyone. I'll see you guys back.