THE ROMEO CIC CHAPTER 2 PART 2 STOP THINKING AND START ANALYSING 2025 COURSE 🆓

Understanding CRT Candles and Market Dynamics

Overview of CRT Candle Types

• The discussion begins with an analysis of three candle types: C1, C2, and C3, which are essential for understanding ideal CRT trades.

• There are two primary types of candles: those that favor buying below the open and those that favor selling above the open.

Candle Characteristics

• Candle one is identified as accumulation; it typically indicates a bearish market direction. Conversely, bullish CRTs often start with a bearish candle.

• The speaker emphasizes the importance of recognizing patterns in candle formations—Candle 1 (accumulation), Candle 2 (manipulation), and Candle 3 (distribution)—and how experienced traders interpret these differently than beginners.

Advanced Trading Insights

• A more advanced trader can identify market maker models at CRT highs and lows, enhancing trading probability.

• Inside wicks of candles reveal additional insights about market structure shifts; for instance, long wicks often indicate price retracement to specific levels before a drop.

Critique of Current Mentorship in Trading

• The speaker critiques contemporary mentors who teach diluted versions of established trading concepts without proper understanding or crediting original sources.

• He shares personal experiences where prominent figures sought his knowledge but later rebranded his teachings as their own.

Ethical Considerations in Learning

• Emphasizes the importance of integrity in mentorship relationships; learning from someone should not lead to betrayal once knowledge is acquired.

• The speaker expresses frustration over individuals claiming originality when they merely repackaged existing ideas without improvement.

Understanding Type Two CRT Patterns

Overview of Type Two CRT

• Type two CRT patterns can be challenging to anticipate as they exhibit both high and low movements simultaneously, leading to confusion among traders.

• Traders often misinterpret the effectiveness of CRT patterns due to a lack of understanding; it's crucial to study the details of these concepts thoroughly.

Types of CRT Patterns

• Type 3 CRT: Involves three candles—candle one (accumulation), candle two (manipulation), and candle three (distribution). Avoid chasing candle two; let it play out for better trading opportunities.

• Candle Number Four: This pattern includes an inside bar that does not reach the previous high, indicating manipulation before distribution occurs.

Trading Strategies

• The most reliable trading opportunity is found in candle number three, which remains consistent over time. Focus on trading after manipulation rather than chasing earlier candles.

• Type Five CRT: Involves multiple inside candles targeting specific ranges. While less favorable, it remains tradable if you understand the underlying accumulation and manipulation framework.

Market Manipulation Insights

• Understanding market makers' strategies is essential; they often push prices below previous lows to stop out traders before significant moves occur.

• The "three drives" pattern illustrates how market makers manipulate price action by creating successive lows designed to trigger stop losses.

Addressing Common Doubts About Trading

Longevity of Trading Concepts

• A common concern among students is whether trading strategies will become obsolete. However, as long as there are uninformed traders in the market, these concepts will remain effective.

• Historical context shows that these strategies have been successful since the late 1800s and are unlikely to cease functioning due to increased awareness among traders.

Focus on Personal Growth Over Social Media

• Emphasize personal financial growth rather than building a social media presence. Successful trading often occurs in solitude without external distractions or influences.

• The instructor highlights that teaching may detract from personal trading success but emphasizes dedication towards helping students learn effectively.

Final Thoughts on Learning and Application

• Students should prioritize mastering their knowledge instead of marketing it. Retaining this information privately can lead to greater long-term benefits in trading success.

• Encourage learners to keep their insights confidential until they fully grasp the concepts, ensuring they can apply them effectively without external pressures or expectations.

Understanding the Butterfly Effect Model in Trading

Overview of the Butterfly Effect Model

• The butterfly effect model is described as a high-risk trading strategy, suitable only for advanced traders. Beginners and intermediate traders are advised to avoid it due to its complexity and potential for significant losses.

• This model is characterized by a consistent high risk-to-reward ratio, focusing on lower time frame CRT (Candle Relative Time) candles to target higher time frame CRT candles.

Key Components of the Model

• The speaker emphasizes their proven accuracy in trading this model, claiming an 81% success rate in public settings. They express concern about account security due to their visibility and performance.

• The butterfly effect model is presented as one of the fastest wealth-building strategies available in trading, highlighting its simplicity and mechanical nature that leads to impressive risk-to-reward outcomes.

Practical Application of the Model

• Traders are instructed to identify high time frame CRT candles and recognize corresponding lower time frame models without needing extensive analysis. This approach allows for quick decision-making based on market conditions.

• The risk associated with trades is defined as the lower time frame CRT candle while targeting rewards at higher time frame CRT highs. This method contrasts with traditional pattern trading approaches.

Differentiating from Pattern Trading

• The speaker notes that unlike pattern traders who wait for specific patterns, this model focuses on understanding market logic and price movements rather than relying solely on visual patterns.

• Emphasis is placed on entering trades at optimal points within lower time frames instead of waiting for ideal conditions that may not provide favorable risk/reward ratios.

Targeting Strategies

• When executing trades, it's recommended to initially target 50% of the potential reward before considering further gains. This strategy helps manage risks effectively while capitalizing on market movements.