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Candle Range Theory ยท 6 min read

How to use Candle Range Theory (CRT)

Time precise entries with 4H/1H Candle Range Theory: use the CRTH/CRTL range of a key candle, a sweep of one side, and a shift back inside to enter with a tight invalidation.

What it does

Candle Range Theory treats a significant candle as a range: its high (CRTH) and low (CRTL) become the boundaries. Price frequently sweeps one side of that range to grab liquidity, then reverses back through it โ€” a clean, repeatable entry model.

Morpheus builds CRT on the 4H and 1H, marks the CRTH/CRTL levels and highlights the confluence around them.

The CRT pattern

  • โ€ขCRTH / CRTL โ€” the high and low of the reference candle define the range.
  • โ€ขSweep โ€” price runs one boundary (grabbing stops) then closes back inside the range.
  • โ€ขConfirmation โ€” a shift in the lower-timeframe structure back through the boundary.
  • โ€ขTarget โ€” the opposite side of the range, or the next liquidity pool.

How to run it

  1. 1Open the Dashboard and select your symbol.
  2. 2Choose Candle Range Theory and click Run.
  3. 3Note the 4H/1H CRTH and CRTL and where price is relative to them.

Executing a CRT trade

Wait for a sweep of CRTL (for longs) or CRTH (for shorts), confirm price is closing back inside the range, and enter on the shift. Place the stop just beyond the swept extreme; target the opposite boundary or the mapped draw-on-liquidity.

๐Ÿ’ก Pro tips

  • โ€ขCRT works best in the direction of the higher-timeframe bias and near a mapped liquidity pool.
  • โ€ขThe tighter and cleaner the sweep-and-reclaim, the better the risk-to-reward.

Morpheus Analysis is a research and educational tool. Nothing here is financial advice โ€” always manage your own risk and validate setups on your own chart before acting.