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
- โขCRTH / CRTL โ the high and low of the reference candle define the range.
- โขSweep โ price runs one boundary (grabbing stops) then closes back inside the range.
- โขConfirmation โ a shift in the lower-timeframe structure back through the boundary.
- โขTarget โ the opposite side of the range, or the next liquidity pool.
How to run it
- 1Open the Dashboard and select your symbol.
- 2Choose Candle Range Theory and click Run.
- 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.
๐ก Pro tips
- โขCRT works best in the direction of the higher-timeframe bias and near a mapped liquidity pool.
- โขThe 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.