Candle Range Theory (CRT) — Bullish & Bearish Models, MSS Entry & Free PDF

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Candle Range Theory (CRT) is a viral trading concept that maps a higher-timeframe candle as a range on the lower timeframe and uses the liquidity raid of that range as the trigger for the trade.

Being an ICT trader I know that price moves because of liquidity and inefficiency. CRT is also based on liquidity, which is why it slots so cleanly into the ICT methodology.

Before going forward I want to give a short disclaimer that the candle range theory is not an ICT concept but it is derived from the ICT trading concepts like the ICT Liquidity Sweep, ICT Power of 3 and ICT Session High/Low Liquidity.

This article walks you through the bullish and bearish CRT models, the exact 3-candle sequence, the entry triggers, the stop placement, the best pairs, common mistakes and the free PDF download.

What is Candle Range?

Before understanding the candle range you should have a basic knowledge of the candlestick.

Every candlestick on a higher timeframe represents a range on the lower timeframe.

So the high of a candlestick represents the high of a range on the lower timeframe — which is called the CRT-High — while the low of the candlestick represents the low of the range on the lower timeframe — which is called the CRT-Low. ICT himself has explained this principle in his earlier mentorships.

What is Candle Range Theory (CRT)?

Candle Range Theory is based on the liquidity raid of the previous candle range and then a run to the next liquidity level.

If price grabs the liquidity of the previous candle’s low we can expect price to run toward the high of the candle range, and vice versa for a sweep of the high.

That single mechanic — sweep one side of the range, then deliver to the other side — is the entire CRT model.

Bullish CRT Model

If price is at a key support level on a higher timeframe then you can look for a bullish CRT model.

For a bullish CRT model you mark the high and low of the candlestick that closed at support. Now wait for the next candlestick to grab the low of the previous candle and close above the low.

After that, wait for another candlestick to close above the high of the candlestick that raided the low — or simply look for an ICT Market Structure Shift on the lower timeframe and then execute a buy trade on the retest.

This entire phenomenon can happen with only 3 candlesticks, but sometimes price may accumulate after raiding the low so the setup can involve more than 3 candlesticks.

In this case your stop-loss sits below the low of the candlestick that raided the liquidity or below the MSS-low. For take profit you target the CRT-High or the next liquidity level above.

Bearish CRT Model

When price is at a key resistance level on a higher timeframe, you can look for a bearish CRT model.

For a bearish CRT model, begin by marking the high and low of the candlestick that closed at the resistance level. Then wait for the next candlestick to grab the high of the previous candle and close below that high.

After this setup, you can wait for the following candlestick to close below the low of the candlestick that took out the high. Alternatively, you can look for an ICT Market Structure Shift on a lower timeframe and then enter a sell trade on the retest.

This entire scenario can unfold within just three candlesticks, but sometimes price may consolidate after grabbing the high, so it could involve more than three candlesticks.

For risk management, your stop-loss should be placed above the high of the candlestick that grabbed liquidity or above the MSS-high. For take profit, target the CRT-Low or the next liquidity level below.

Step-by-Step CRT Trade Flow

This is the exact sequence I run before placing a CRT trade — from higher-timeframe context to lower-timeframe execution.

1. Anchor on a higher timeframe. Identify the H4, H1 or daily candle that has just closed at a key support or resistance.
2. Mark the CRT-High and CRT-Low. The high and low of that anchor candle define the entire range.
3. Wait for the raid. The next candle must take out either the CRT-High (for a bearish setup) or the CRT-Low (for a bullish setup).
4. Confirm the close. The raiding candle must close back inside the range — above the CRT-Low for a bullish setup, below the CRT-High for a bearish setup.
5. Drop to the lower timeframe. Move to the 15-minute or 5-minute chart to look for the entry trigger.
6. Look for an MSS. A market structure shift on the lower timeframe confirms the change in delivery direction.
7. Enter on retest. Enter on the retest of the MSS — typically into a fair value gap or order block left behind by displacement.
8. Set the stop. Stop-loss below the candle that raided liquidity (bullish) or above it (bearish), or simply at the MSS swing.
9. Take profit at the opposite side of the range. Target the CRT-High for bullish trades and CRT-Low for bearish trades, with extension to the next external liquidity pool.

High Probability CRT Setups

High-probability CRT setups can be found during the ICT Kill Zones or ICT Sessions Raid.

I personally trade CRT setups most often when the higher-timeframe candle that anchors the range closes inside a London or NY-AM kill zone, because that is where the algorithm tends to deliver the strongest displacement after the sweep.

The CRT-High and CRT-Low also tend to coincide with prior session high/low and prior day high/low — which adds a second layer of confluence to the model.

Best Pairs and Markets for CRT

CRT works on every market that the ICT methodology is applied to — major forex pairs, indices and metals.

I have personally taken CRT setups on GBP/USD, EUR/USD, NQ (NASDAQ futures), ES (S&P 500 futures) and XAU/USD with consistent results. The model is timeframe-agnostic, but the daily, H4 and H1 candles produce the cleanest CRT ranges in my own log.

For traders in the United States who follow the CFTC FIFO and no-hedge rules, CRT is particularly natural on NQ and ES futures (CME Group) because there is no short-selling restriction on index futures. Many of my US-based readers trade CRT on the daily candle as a swing setup and on the H1 candle inside the 09:50 NY-AM macro window.

ICT Power of 3 vs CRT

Candle range theory is basically the application of the ICT Power of 3.

ICT PO3 states that price will first accumulate, then manipulate by moving in one direction and taking short-term liquidity, then distribute by moving in the opposite direction.

According to CRT, price accumulates inside the range and takes the liquidity of either the CRT-High or the CRT-Low, then moves toward the opposite side.

The CRT-High/Low can also be the ICT previous day high/low or previous session high/low — which is why CRT setups are so often telegraphed by the higher-timeframe PD array.

Common Mistakes When Trading CRT

These are the mistakes I see most often from traders who first start trading the CRT model.

1. Trading CRT in the middle of the range. The model only works when the anchor candle closes at a meaningful support or resistance — not in the middle of nowhere.
2. Skipping the close confirmation. The raiding candle must close back inside the range. A wick that pokes the level and continues without a close-back is not a CRT, it is just a continuation.
3. Entering without an MSS. The lower-timeframe market structure shift is the trigger. Entering on the raid alone front-runs the setup.
4. Stop too tight. Stops parked exactly at the MSS swing get hunted on the wick. A small buffer (a few pips on forex, a few ticks on indices) is required.
5. Targeting only the CRT-High/Low. The opposite side of the range is the first target — not the only one. The next external liquidity pool is often a higher-quality target on a strong day.
6. Ignoring the kill zone. CRT setups outside of the London or NY-AM kill zones (and outside of the Asian-range raid window) deliver less reliably.

Conclusion

Candle range theory is nothing new — this is what ICT taught us years ago and people just renamed it and packed it into their label claiming a new trading strategy. The model is sound, the mechanics are clean and the alignment with PO3, liquidity sweep and the kill zones makes it one of the more accessible ICT-derived setups for traders who are still building their core read of the market.

Candle Range Theory PDF Download

You can download below ICT candle range theory in PDF for free. This PDF is sponsored by ICTPDF.COM.

To learn the complete ICT Trading strategy step by step, you can buy the ICT Trading PDF eBook on ICTPDF.COM.

FAQs about Candle Range Theory

Brief answers to the questions readers ask most often about CRT.

What is Candle Range Theory in trading?

Candle Range Theory is a model in which the high and low of a higher-timeframe candle define a range on the lower timeframe, and a sweep of one side of that range is followed by a delivery to the opposite side.

Is CRT an ICT concept?

CRT is not an original ICT concept, but it is derived from ICT trading concepts including liquidity sweep, Power of 3 and session high/low liquidity.

What is the CRT-High and CRT-Low?

The CRT-High is the high of the higher-timeframe anchor candle and the CRT-Low is the low of the same candle. Both levels mark the boundary of the range on the lower timeframe.

How many candles does a CRT setup take?

The classic CRT can complete in 3 candles, but sometimes price may accumulate after the raid, so the setup can involve more than 3 candles.

Where do I place the stop loss on a CRT trade?

For a bullish CRT, place the stop below the low of the candle that raided the liquidity or below the MSS-low. For a bearish CRT, place the stop above the high of the candle that raided the liquidity or above the MSS-high.

What is the take profit on a CRT trade?

The first target is the opposite side of the range — CRT-High for bullish trades and CRT-Low for bearish trades. The next external liquidity pool is the secondary target.

Which timeframe is best for CRT?

The daily, H4 and H1 candles produce the cleanest CRT ranges. The 5-minute and 15-minute timeframes are used for the entry trigger and MSS confirmation.

Does CRT work on forex pairs?

Yes — CRT works on major forex pairs like GBP/USD and EUR/USD, on index futures like NQ and ES, and on metals like XAU/USD.

Is CRT the same as ICT Power of 3?

CRT is a direct application of the ICT Power of 3. The accumulate-manipulate-distribute sequence is the engine that drives the CRT range.

Can beginners trade CRT?

Yes — CRT is one of the more accessible ICT-derived models for beginners because it requires only 3 things: a higher-timeframe close at support or resistance, a sweep of one side of the range, and an MSS for the entry.