Lecture on Candle Range Theory (CRT)

Introduction

• Goal: Achieve a deeper understanding of CRT for better market trading
• Instructions: Forget preconceived notions; take notes; pay attention

What is CRT?

• Full form: Candle Range Theory
• Core Idea: Every candle is a range
  • A candle can either be broken out of or 'Turtle souped' (Wicked below and closed above)
  • There is no third option

Trading the Range

• Monthly Range: Monthly open, low, high, close
• Weekly Range: Weekly open on Sunday, low, high, close
• Daily Range: Daily open, low, high, close
• 4-Hour Range: 4-Hour open, low, high, close
• 1-Hour Range: 1-Hour open, low, high, close

Defining the Range

1. Decide: Choose which range you want to trade (monthly, weekly, daily, 4-Hour)
2. Marking: Practice marking the open and close of monthly, weekly, daily, and 4-hour candles
   • Monthly candle: Go to the 4-Hour chart
   • Weekly candle: Go to the 1-Hour chart
   • Daily candle: Go to the 15-Minute chart
   • 4-Hour candle: Go to the 5-Minute chart

Trading Strategy: Open, High, Low, Close (OHLC)

• Bullish Strategy: Wait for open, key level, Turtle soup, then rally
• Bearish Strategy: Open, bearish key level, Turtle soup, then decline
• Key Idea: This sequence happens on every candle

Fractality of Price

• Concept: Price action is similar across different timeframes (monthly, weekly, daily, 4-hour, 1-hour)
• Practice Lower Time Frames: Use lower timeframes to build experience
• No Fixed Time Frame Alignment: Each timeframe prints at its own pace

Mission

• Homework: Mark and analyze open and close on different timeframes like 4-hour for monthly, 1-hour for weekly, etc.
• Turtle Soup: Practice predicting Turtle soup pattern and market movements

Power of Three

1. Accumulation: First candle of the week/month/day/hour
2. Manipulation: Second candle of the week/month/day/hour
3. Distribution: Third candle of the week/month/day/hour

Practical Example

• Example Setup: Weekly Range on 1-Hour chart, mark Sunday 5 PM to next weekly open
  • Accumulation: First candle
  • Manipulation: Second candle (Turtle souped)
  • Distribution: Third candle (targets 50% and opposing end of the range)

Journaling and Improvement

• Journal: Note every loss and reverse engineer the mistake
• Practice: The more you practice, the more second nature it becomes
• Build on Basics: Understand the core strategy, then add intricacies and details

Advanced Details

• Wicks vs. Closes: Determine bias based on candle wicks and closes
• Time of Day: Certain times are for consolidation, others for expansion
• Psychology of Market: Always think like a market maker, who is getting stopped out, who is winning

Final Tips

• Repetition: Watch and re-watch the lecture to fully grasp concepts
• Credibility: Instructor holds world record for highest accuracy in trading (80% accuracy)
• Critique on ICT: Long-winded content, but good for foundational knowledge

Homework

• Reverse Engineer: Instructor’s trades from 2023; find the patterns and principles of CRT in those trades
• Watch Turtle Soup Series: Commencing next week

Conclusion

• Key Takeaway: Every candle is a range; open, key level, Turtle soup is the core of the strategy
• Further Studies: Continue learning about markets and trading practices

Summary

• CRT helps frame market movements as ranges
• Utilize fractal nature of price to practice trading
• Ground your strategy in OHLC and the Power of Three
• Practical observation and journaling are crucial for improvement