I will teach you 2 simple strategies for trading Candle Range Theory on US30 Index with SMC.

I will show you the efficient CRT price models and explain different ways to identify a profitable confirmation entry signal.

Ideal CRT Candlestick

The core of profitable CRT trading is a selection of a proper candlestick.

No matter what entry strategy you will use, the rules and conditions of a candle that you will trade will be the main element.

So let me start with explaining how I pick a perfect candle.

1. The first important condition to be met is a strong imbalance.

   
   

Our perfect candle should be an imbalance bullish or bearish candle

with a large body and relatively small wicks.

2. The second condition is a trap and a liquidity grab beyond the range of that candle after it closes.

That is the example of such a candle on US30 index on a 4H time frame.

We see a strong selling imbalance candle with a large body.

After this candle closed, a trap below its low occurred.

We will trade ranges of only such candles.

Once these 2 conditions are met, you can look for entry signals with these 2 strategies.

Strategy 1

With this strategy, we will use the same time frame for the identification of an entry signal.

I suggest waiting for the start of a consolidation and a weak momentum after a trap.

The price will likely start coiling within a horizontal range.

In this range, an accumulation of trading volumes will likely occur.

Entry Signal

Your signal to buy will be a breakout and a candle close above a resistance of the range.

That will confirm that the accumulation is completed.

• Entry will be on a retest of a broken resistance.

• TP will be a couple of pips below a candle opening level.

• Stop loss will be below the low of the trap.

Strategy 2

With this strategy, we will use lower time frame analysis for the identification of an entry signal.

If we spotted a candle for CRT trading on a 4H, we will look for a signal on an hourly time frame.

On an hourly time frame, we will need to do a market structure mapping and search for a bullish change of character CHoCH as a signal.

It will confirm a violation of a minor bearish trend and signify a strength of the buyers.

Entry Signal

• Entry will be after a pullback on a retest of a broken level of the last lower high.

• Stop loss will be below the lows of the trap.

• Take profit will be based on a 4H candle opening level.

Strategies' Strengths & Weaknesses

Entry strategy on the same time frame is way easier and provides a higher accuracy.

At the same time, a lower time frame confirmation will provide an entry signal earlier, giving a way better reward to risk ratio.

Also, remember that with the analysis of multiple time frames, there will always be a higher chance of an occurrence of a signal and a consequent entry.

Personally, I prefer a top-down analysis entry strategy for CRT trading.

If you are a beginner, though, start with a single time frame analysis as it is more straightforward.

Result

The final result of the setup that we analysed on US30 is the following:

While an hourly time frame analysis provided a perfect entry confirmation, a 4h time frame analysis did not provide an entry opportunity as the price did not retest a broken resistance.

Try both entry strategies and pick the one that is more suitable for you.

Thanks for reading.