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Candle Range Theory · 6 min read

How to use Candle Range Theory (CRT) Setups

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

What it does

Candle Range Theory treats a significant candle as a defined 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 — creating a clean, repeatable entry model with minimal drawdown.

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

The CRT pattern

  • CRTH / CRTL — the high and low of the reference candle define the range.
  • Sweep — price runs one boundary (grabbing retail stops) then closes back inside the range.
  • Confirmation — a shift in lower-timeframe structure back through the boundary.
  • Target — the opposite side of the range, or the next mapped 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 currently trading 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.

💡 Pro tips

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

Morpheus Analysis is a research, educational, and algorithmic trading intelligence tool. Nothing here is personal financial advice — always manage your own risk, follow strict position sizing, and validate setups on your own chart before acting.