Candle Range Theory (CRT)

What it is

Candle Range Theory treats each higher-timeframe candle (often the 4-hour or the daily) as a range with a high and a low. When a later candle trades beyond one side of that range, sweeping the liquidity there, and then closes back inside, CRT expects price to travel to the opposite side of the range. It's ICT's Power of 3 applied to a single candle: the sweep is the manipulation, the move across is the distribution.

It is usually credited to a trader known as Romeo (RomeoTPT), though the main source for that sells a CRT product and the origin isn't independently confirmed. As with the other online frameworks, there's no published test of it.

How to spot it

• Mark the high and low of the reference candle.
• The next candle wicks beyond one side and its body closes back inside.

How to use it

• Drop to a lower timeframe after the close back inside and look for a shift in structure, then target the opposite side of the reference candle.
• Stop beyond the sweep's wick.

Common mistakes

• Trading the sweep before the candle has closed back inside.
• Using reference candles from random timeframes.

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