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CRT course part 5 CRT HTF Key Levels 1080p
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CRT course part 5 CRT HTF Key Levels 1080p

Understanding Higher Time Frame Key Levels

Importance of Higher Time Frame Key Levels

  • Utilizing higher time frame key levels to validate CRT (Consolidation Range Trading) highs and lows can significantly increase win rates.
  • Key levels should be derived from appropriate higher time frames; for instance, if analyzing a 1-hour chart, avoid referencing monthly charts.

The Division by Four Rule

  • The "divide by four" rule is crucial: if a key level originates from the 1-hour chart, the corresponding CRT will form on the 15-minute chart.
  • This principle applies across various time frames:
  • Daily charts relate to weekly,
  • Weekly charts relate to monthly,
  • Monthly charts relate to yearly.

Identifying High Probability Trades

  • Explosive price movements are desired when key levels are reached; stagnant price action at these levels is unfavorable.
  • Always remember the division by four rule for effective trading strategies across different time frames.

Applying Key Levels in CRT

Example of Effective CRT Setup

  • A practical example shows a key level from an hourly chart impacting a lower time frame (15-minute), leading to high probability trades.
  • Successful trades were executed as prices closed above key levels, indicating strong bullish momentum towards the CRT high.

Entry Strategies Using Lower Time Frames

  • When identifying entries based on a CRT formed on a 15-minute chart, switch to a 1-minute chart for precise entry points.
  • Observing changes in state delivery validates order blocks; this involves recognizing thick down-close candles that touch both key levels and CRT lows.

High Probability Trade Setups with Key Levels

Analyzing Different Time Frames

  • A scenario illustrates how having higher time frame key levels below or above the CRT enhances trade success probabilities.
  • Targeting opposing ends of ranges becomes feasible when understanding that if the CRT is on an hourly basis, relevant key levels come from the 4-hour chart.

Final Thoughts on Order Blocks and Entries

  • Successful execution of trades relies heavily on utilizing proper key levels; random setups often lead to failure.
  • For entries derived from an hourly CRT range, utilize a five-minute chart while looking for order blocks that indicate potential long positions.