Este Nuevo Método De Trading Está Cambiando Vidas (CRT)

Introduction to CRT Trading

Overview of CRT Methodology

• This video presents a free trading course on the CRT method, which is gaining popularity among traders. The course will cover everything from basic concepts to advanced strategies for profitable trading with CRT.

• The aim is to provide a solid foundation for viewers to practice independently and improve their trading results over time.

Origin and Background of CRT

• CRT originated from a YouTube user named Romeo TP, who previously studied under ICT. He claimed that other strategies are inferior in his introductory video about CRT.

• There is contention within the community regarding the original creator of CRT, with some channels focusing more on disputes than on helping others learn trading effectively.

Understanding CRT as a Methodology

Definition and Conceptual Framework

• It’s important to clarify that CRT is not a single strategy but rather a methodology similar to using moving averages in trading; it encompasses various concepts that can be applied flexibly.

• Viewers may find different interpretations of how to apply CRT across various channels, but all share the same underlying philosophy without invalidating each other’s approaches.

Personal Experience with Trading Strategies

• The speaker emphasizes they are not an expert in CRT but have their own successful trading strategies backed by audited track records demonstrated in previous videos. They encourage viewers to explore multiple methodologies within the framework of CRT.

Candle Range Theory (CRT)

Fundamental Principles of Candle Range Theory

• "CRT" stands for Candle Range Theory, which relates the price range of one candle to what follows next, aiming at predicting price continuation or reversal based on subsequent candles' behavior.

• Understanding the price range involves recognizing the maximum and minimum points of a candle, including its opening and closing prices—this forms the basis for analyzing future movements.

Analyzing Price Movements

• When observing two consecutive candles, if the second candle closes outside the range established by the first candle, it indicates potential continuation; conversely, if it only creates a wick outside this range before closing inside it suggests possible reversal towards an opposite direction.

• The discussion includes advanced concepts such as patterns involving three candles and how these can indicate market direction based on closures above or below previous candles’ ranges—key insights into interpreting market signals effectively are provided here.

Understanding Candle Patterns and Fractality in Trading

Key Concepts of Candle Patterns

• A wick above the previous candle without a close indicates a bearish bias for the next candle, while a wick below suggests a bullish bias.

Importance of Fractality in Trading

• Fractality is crucial for mastering any trading methodology, including CRT. It signifies that patterns repeat across all timeframes.

• In trading, an impulse and pullback pattern observed on a monthly chart will manifest differently on daily charts, showcasing multiple impulse and pullback patterns.

• Understanding fractality helps traders identify trends; for instance, higher highs and higher lows can be seen across different timeframes.

Application of Fractality in Trading Styles

• Traders can choose their style based on the timeframe: swing trading focuses on monthly impulses, day trading on daily charts, and scalping on 5-minute charts.

• The concept of fractality allows traders to find similar impulse-pullback structures regardless of whether they are looking at larger or smaller timeframes.

Analyzing the Three-Candle Pattern

• The three-candle pattern can develop over various timeframes: monthly, weekly, daily, or 4-hour charts.

• For example:

• Monthly patterns aim to capitalize on 4-hour movements.

• Weekly patterns target hourly trades.

• Daily patterns focus on 15-minute trades.

Phases within the Three-Candle Pattern

• Each large timeframe's three candles represent distinct phases:

• Phase One: Establishes range (first candle).

• Phase Two: Indicates manipulation (second candle).

• Phase Three: Represents distribution (third candle).

• The ideal trade execution occurs during the distribution phase as it is more directional compared to the other phases.

• While some traders may execute trades during manipulation phases based on specific strategies, focusing on distribution is generally preferred for clarity in direction.

Understanding Trading Patterns and Strategies

Analyzing Price Movements in Different Timeframes

• The discussion begins with the importance of analyzing price movements across various timeframes, such as daily and 15-minute charts, to identify patterns.

• Observing a price pattern on a daily chart can reveal significant movements, including rises and falls that establish a trading range.

• The concept of manipulation is introduced, where prices fluctuate within a range before establishing a clearer direction in subsequent candles.

• The third candle represents distribution, which allows for more straightforward trade execution compared to the first two candles that involve either no range or manipulation.

• Acknowledgment of potential confusion regarding trade execution leads to an assurance that a step-by-step strategy will be provided.

Step-by-Step Trading Strategy Development

• The speaker plans to outline a profitable trading strategy based on CRT (Candle Range Theory), emphasizing its effectiveness through real-world application by trusted traders.

• This strategy simplifies previously discussed concepts into actionable steps aimed at resolving common trading uncertainties.

• Emphasis is placed on foundational concepts related to candle ranges while acknowledging additional advanced strategies like smart money concepts and order blocks.

Key Steps in Executing the Trading Strategy

Step 1: Determine Candle Range

• The first step involves identifying the range of the previous day's candle, which serves as a reference point for future trades.

• Properly marking this range from maximum to minimum is crucial for effective analysis.

Step 2: Activation of Levels

• As new candles form, recognizing when levels are activated becomes essential; this indicates potential bullish or bearish trends without confirmation yet.

Step 3: Fractal Analysis on Higher Timeframes

• Transitioning down to four-hour charts allows traders to observe how daily ranges manifest over shorter periods while confirming active levels.

Step 4: Further Breakdown into One-Hour Charts

• Continuing the fractal approach, one-hour charts should reflect similar patterns established in higher timeframes, reinforcing confidence in identified ranges.

Understanding Trading Ranges and Execution

Analyzing the 15-Minute Timeframe

• The final step involves analyzing the 15-minute timeframe to confirm price movements within a trading range. This is crucial for executing trades effectively.

• Observations indicate that as the lower zone of both the hourly and 4-hour ranges is swept, similar actions occur in the 15-minute range, confirming market behavior.

Key Confirmation Points

• A critical aspect is ensuring that not only does activation occur but also confirmation of the last candle's range without breaking its upper boundary. This solidifies trade execution strategies.

• Once confirmation occurs, traders execute positions at market open following a candle closure, setting stop losses below previous lows and take profits at least at the upper range of 4 hours.

Trade Execution Strategy

• The basic target for profit is approximately 50% of the largest candle's range; however, adaptations may vary based on individual trading styles and risk management approaches.

• Some traders aim directly for daily maximum ranges for higher risk-reward ratios (e.g., 25%), but this often leads to numerous losses before achieving gains due to volatility challenges.

Managing Expectations in Trading

• It’s suggested that aiming for more conservative targets (like those from a 4-hour chart) can lead to quicker profits while minimizing exposure to significant losses during volatile periods. This approach appears more sustainable over time.

Post-Manipulation Candle Analysis

• After entering trades during manipulation candles, subsequent bullish candles typically reach halfway into previous ranges, although this outcome can be coincidental rather than guaranteed due to market unpredictability.

• Traders must be prepared for potential volatility where prices might not follow expected patterns and could move against initial predictions after manipulation phases are completed.

Exploring Sales Strategies in Trading

Identifying Daily Ranges

• In sales scenarios, identifying daily ranges becomes essential; if subsequent candles do not sweep either side of these ranges initially, it indicates potential market indecision or reversal points ahead.

Confirming Bearish Trends

• A bearish trend confirmation occurs when a candle closes within the primary range established by earlier price action; this signals readiness for potential selling opportunities as conditions align across timeframes.

Aligning Timeframes for Sales Execution

• Before initiating sales on a four-hour chart, it's necessary to wait until both upper and lower boundaries are activated; alignment between larger timeframes ensures stronger trade validity and reduces risks associated with premature entries.

Finalizing Sales Decisions

• As price action progresses towards sweeping upper limits on larger charts (like daily), traders should remain vigilant about aligning all relevant timeframes before executing any sales strategy to ensure comprehensive analysis supports their decisions effectively.

Understanding Market Ranges and Confirmations

Analyzing Hourly and Four-Hour Charts

• The speaker discusses the importance of adapting to market conditions, indicating that the four-hour range has been invalidated and a new one must be established.

• To align with daily structure for potential sales, the four-hour chart needs to show a "Turtle sub" pattern from its upper part, allowing alignment with lower timeframes like hourly charts.

Confirmation of Ranges Across Timeframes

• As progress is made in analysis, the four-hour range is activated but not yet confirmed. A similar situation is observed on the hourly chart.

• Key points include:

• Daily range confirmed.

• Four-hour range activated (not confirmed).

• Hourly range also activated but requires confirmation.

Execution Strategy Based on Confirmations

• The speaker emphasizes that both the four-hour and hourly ranges are now active; however, only the hourly range has been confirmed as it closed within its candle.

• Moving down to a fifteen-minute chart reveals an unconfirmed but activated hourly range. The need for confirmation before executing trades is highlighted.

Trade Execution Details

• On confirming the fifteen-minute range, it becomes clear that price action has swept through its upper boundary, validating a potential sell opportunity.

• The strategy involves placing a stop loss above previous highs while setting take profit targets based on either half of the daily range or full daily targets depending on trader preference.

Final Thoughts on Trading Strategies

• The speaker notes that all ranges are aligned: confirmations exist in fifteen minutes, activations in one hour and four hours, along with confirmation in daily charts.

• A cautionary note is provided about trading strategies; no single method guarantees success. Successful traders often use algorithmic methods rather than relying solely on discretionary approaches.