Win Any Trade with This Candle Pattern
40sPromises a simple, high-probability trading method that appeals to aspiring traders.
▶ Play ClipAI 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.
Chapters
[00:02]
Core Concept
The first candle defines the range, and the second candle creates the entry. This applies to any candle on any timeframe.
[00:28]
Liquidity Sweep
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.
[00:41]
Invalidation Rule
If the second candle closes above the CRH, the setup is invalidated because the market is more likely to continue upward.
[00:56]
Short Setup
When the second candle fails to close above the CRH, enter a short setup with the target being the candle range low.
Tutorial Checklist
5
00:56
If the second candle fails to close above the CRH, enter a short setup with the target at the candle range low.
Study Flashcards (4)
What are the roles of the first and second candles in Candle Range Theory?
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What are the roles of the first and second candles in Candle Range Theory?
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The first candle defines the range, and the second candle creates the entry.
00:02
What does a liquidity sweep from the CRH suggest about the market's next move?
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What does a liquidity sweep from the CRH suggest about the market's next move?
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If the second candle's high sweeps above the range high and immediately reverses, the next target is likely the liquidity below the range low.
00:28
When is a short setup invalidated in Candle Range Theory?
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When is a short setup invalidated in Candle Range Theory?
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If the second candle closes above the CRH, the setup is invalidated because the market is more likely to continue pushing upward.
00:41
What is the target for a short setup in Candle Range Theory?
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What is the target for a short setup in Candle Range Theory?
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The target is the candle range low.
00:56
💡 Key Takeaways
🔧
Two-Candle Framework
Provides a simple, actionable rule for identifying entry points using just two candles.
00:02
💡
Liquidity Sweep Signal
Explains how a sweep of the range high can predict a move to the opposite end of the range.
00:28
⚖️
Invalidation Rule
Offers a clear condition to avoid false signals, crucial for risk management.
00:41Full Transcript
[00:02] 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
[00:14] 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
[00:28] 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
[00:41] 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.
[00:56] 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.
