---
title: 'The ICT Candle Range Theory (CRT) #trading #tradingsystem #forex'
source: 'https://youtube.com/watch?v=aEhN5ElTi80'
video_id: 'aEhN5ElTi80'
date: 2026-08-19
duration_sec: 66
channel: 'Smart Risk'
---

# The ICT Candle Range Theory (CRT) #trading #tradingsystem #forex

> Source: [The ICT Candle Range Theory (CRT) #trading #tradingsystem #forex](https://youtube.com/watch?v=aEhN5ElTi80)

## Summary

This video introduces the ICT Candle Range Theory (CRT), a trading strategy that uses the relationship between two candles to identify high-probability entries. It explains how the first candle defines the range and the second creates the entry, with a focus on liquidity sweeps and invalidation rules.

### Key Points

- **Core Concept** [00:02] — The first candle defines the range, and the second candle creates the entry. This applies to any candle on any timeframe.
- **Liquidity Sweep** [00:28] — If the second candle's high sweeps above the range high (CRH) and immediately reverses, the next target is likely the liquidity below the range low.
- **Invalidation Rule** [00:41] — If the second candle closes above the CRH, the setup is invalidated because the market is more likely to continue upward.
- **Short Setup** [00:56] — When the second candle fails to close above the CRH, enter a short setup with the target being the candle range low.

## Transcript

follow this method and win any trade. The typical concept of candle range and each candle has its own important role. The first candle defines the range. The second candle creates the
entry. We can actually use any candle that appears on a chart, and this applies to any timeframe as well. If the second candle range high and immediately reverses, there's a high probability
that the next target will be the liquidity below the candle range low. In other words, this liquidity sweep from the CRH suggests that the market is likely to shift direction and seek out liquidity resting at the opposite end of
If, instead, we see the second candle close above the CRH, then the potential invalid. This is because it's more likely that the market will continue pushing upward, rather than targeting the low of the first candle's range.
second candle fails to close above the the third candle for a potential short setup with our target being the candle setup with our target being the candle range low.