Reference
CRT (Candle Range Theory)
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.
Last updated 2026-07-31
Key facts
- CRT stands for Candle Range Theory.
- A CRT range is defined by one candle: its high, its low, and its 50% midpoint (equilibrium).
- The model has three phases in fixed order: the range, the sweep, the expansion.
- The sweep is a liquidity grab, not a breakout — it takes out stop losses and breakout entries resting beyond one edge of the range.
- After the sweep, the swept edge becomes the origin of the move and the untouched edge becomes the target.
- CRT is timeframe-agnostic: the same range logic applies to a weekly candle and to a 5-minute candle.
- CRT maps closely onto the ICT concept of Accumulation → Manipulation → Distribution (AMD), also called the Power of Three.
The three phases of CRT
1. The range. A candle forms with a defined high and low. That range becomes the reference area price is working within. The midpoint — the 50% level — acts as equilibrium: fair value sitting between the two extremes.
2. The sweep. Price pushes beyond one edge of the range, above the high or below the low, taking out the orders resting there. This is the phase that traps traders: it has the appearance of a breakout, but it is a liquidity grab rather than a genuine directional move.
3. The expansion. After the sweep, price reverses and expands toward the opposite side of the range. The edge that was swept becomes the origin of the move; the edge that was left untouched becomes the target.
The sequence is fixed. A range with no sweep is not a CRT setup, and a sweep with no expansion is an incomplete one.
What CRT is not
CRT is not a breakout strategy. The move beyond the range edge is the part CRT expects to fail. Treating that push as a breakout entry is the most common way the model gets traded backwards.
CRT is not an indicator. There is no calculation and no signal line. The range comes directly from a candle's own high and low, which is why the levels are objective and the rules can be written down and tested.
CRT is not specific to one market or timeframe. The same logic applies to indices, forex, metals and crypto, and to any candle duration.
CRT is not a complete trading system on its own. It defines where the levels are and what sequence to expect. Entry precision, invalidation and risk still have to come from somewhere.
Why traders use CRT
It is structured: instead of a discretionary read, there are three defined levels to work from — the high, the low, and the midpoint of the range.
It is built around liquidity: the model explicitly accounts for the stop-run that shakes most traders out, so the trap is something you read rather than something you fall into.
It scales across timeframes: a higher-timeframe candle can supply context while a lower timeframe supplies the entry, using identical logic at both scales.
It is objective enough to test: because the levels come from a candle's range rather than from judgement, the rules can be written down, measured and backtested across a large sample.
How CRT relates to ICT and smart money concepts
CRT is a focused model; ICT (Inner Circle Trader) is a broad framework. They share the same underlying premise — that price reaches for resting orders before making its real move — and CRT's three phases map almost directly onto ICT's Accumulation → Manipulation → Distribution.
CRT's range corresponds to accumulation, CRT's sweep corresponds to manipulation or the liquidity grab, and CRT's expansion corresponds to distribution. A trader who understands one will recognise most of the other.
How CRT is practised and tested
CRT is a recognition skill, and recognition comes from repetition rather than from explanation. The gap between understanding the model and trading it is screen time — seeing the sequence form in real time, often enough to act on it under pressure.
The measurable way to build that is replay: step through historical price one candle at a time with the future hidden, mark the range, wait for the sweep, and log what the expansion actually did. Across 50–100 occurrences that produces a real win rate and average R for the setup rather than an impression of one. The step-by-step process is documented here.
Questions
What does CRT stand for in trading?
CRT stands for Candle Range Theory. It is a price-reading model built on the range of a single candle — its high, its low, and its 50% midpoint.
What are the three phases of CRT?
The range, the sweep, and the expansion. A candle's high and low define the range; price then sweeps one edge to take the liquidity resting beyond it; price then expands toward the opposite edge.
What is the CRT midpoint?
The 50% level of the candle's range, also called equilibrium. It sits between the two extremes and represents fair value within the range.
Is CRT the same as ICT?
No. CRT is a single focused model; ICT is a broad framework containing many concepts. They rest on the same liquidity premise, and CRT's three phases correspond closely to ICT's Accumulation → Manipulation → Distribution, but CRT is one idea and ICT is a whole body of work.
Is a CRT sweep the same as a breakout?
No — it is closer to the opposite. A sweep looks like a breakout but is expected to fail, because its purpose is to take out the stop losses and breakout entries resting beyond the range edge before price moves the other way.
What timeframe does CRT work on?
Any. The logic is identical on a weekly candle and on a 5-minute candle. Many traders use a higher-timeframe candle for context and a lower timeframe for entries.
How do you backtest CRT?
Replay historical price one candle at a time with the future hidden, mark the range, wait for the sweep, and log the outcome of the expansion by fixed rules. After 50–100 setups you have a measured win rate and average R rather than an impression.