Trading reference

Candle Range Theory (CRT) is a method of reading price that treats a single candle's range — its high, its low, and its midpoint — as the reference zone for what price does next: price sweeps one edge of the range to take the liquidity resting beyond it, then expands toward the opposite edge.

A liquidity sweep is price trading through a level where resting orders are concentrated — typically just beyond a prior swing high or low — filling those orders, and then reversing back through the level rather than continuing beyond it.

A kill zone is a specific window within the trading day when liquidity and volatility concentrate, and in which ICT-style traders expect the highest-quality setups to form — rather than treating all hours of the session as equally tradeable.

An order block is the last opposing candle before an impulsive move that breaks market structure — the final down candle before a rally that breaks a high, or the final up candle before a decline that breaks a low — marked as a zone because price frequently returns to it before continuing.

Premium and discount are the two halves of a dealing range measured from its low to its high: everything above the 50% level (equilibrium) is premium, everything below it is discount. The convention is to look for buys in discount and sells in premium, on the reasoning that a trade taken away from equilibrium starts with a worse price than one taken toward it.