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Once You Master Candle Range Theory, Trading Becomes Ridiculously Simple — Transcript

by The Simplified Trader · 3,505 words · 500 segments · language en · Watch on YouTube

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0:00If I could go back five years and change
0:02one thing about the way I learned to
0:04trade, I wouldn't search for a better
0:06strategy, I would stop trying to make
0:09every time frame tell me everything
0:11because this is where trading becomes
0:13unnecessarily complicated. I'd look at
0:16the 4hour chart for direction. I would
0:19drop to the 1 hour chart and find
0:21something that made me question it. Then
0:23I would move on to the five minute and
0:26find an entry that made me change my
0:29mind again. The more I learned, the more
0:32convincing I became at arguing both
0:35sides of the same market. What
0:38eventually simplified everything for me
0:40wasn't another indicator or another
0:43entry model. It was giving every time
0:46frame one specific job. In this video,
0:51I'm going to show you how I use one
0:53completed 4hour candle to tell me where
0:56price becomes interesting, the 1 hour
0:59chart to tell me where I can actually
1:01have a condition worth trading, and only
1:04then on the five minute time frame to
1:07tell me when I'm allowed to execute. But
1:10the entry isn't the most important part
1:13because once you understand the
1:15sequence, you'll also know exactly when
1:17not to trade. And that's the part I want
1:20you to see on the real charts later on.
1:23First, I need to show you why the way
1:26most traders use multiple time frames
1:29creates the problem in the first place.
1:32Look at what happens when every time
1:34frame is allowed to answer every
1:36question. I open the 4hour chart and ask
1:39it for direction, confirmation, and
1:42execution. Then I move on to the 1 hour
1:44time frame and ask the same three
1:47questions again. Then I reach the 5
1:50minute and effectively start the entire
1:52analysis again. The problem isn't that
1:56any of those time frames are useless.
1:58The problem is that none of them has a
2:01clearly defined responsibility.
2:03So instead of the lower time frame
2:06making the decision more precise, every
2:08new time frame introduces another
2:11opportunity to contradict the decision I
2:14have already made. I want to reverse
2:16that. I want every move down in time
2:19frame to leave me with fewer decisions,
2:22not more. So for this strategy, the
2:254hour time frame has one job, location.
2:30The 1 hour chart has one job, condition,
2:34and the five minute chart has one job,
2:37execution.
2:38That's the hierarchy we're going to
2:40build everything around. And notice that
2:43I still haven't told you where to enter
2:45a trade. That's deliberate because
2:48before an entry matters, price needs to
2:51reach somewhere worth trading from. So
2:54the first question we need to answer is
2:56simply where does price become
2:59interesting.
3:02This is where the model begins. I am
3:04using the previous completed 4hour
3:06candle which is for the setup we're
3:09looking at here is the 1:00 a.m. to 5:00
3:13a.m. Eastern Standard Time candle. Once
3:16that candle completely closed, I mark
3:18two prices. It becomes my CRT high and
3:22its low becomes my CRT low. And those
3:25two prices define the range I am now
3:28interested in. That immediately changes
3:31the way I look at the chart because I no
3:33longer need to treat every movement as a
3:36potential trading opportunity. If price
3:39is moving around without interacting
3:41with either CRT boundary, the first
3:44stage of my model hasn't happened. I'm
3:47waiting for price to run one side of
3:50this range. If price trades through the
3:52CRT low with the possibility of a
3:55bullish setup begins to form. If price
3:58trades through the CRT high, the
4:00possibility of a bearish setup begins to
4:03develop. But be careful here because
4:07this is where it's very easy to learn
4:10half of CRT and start taking trades too
4:13early. A run of the boundary is not my
4:17confirmation. All it does is get my
4:20attention. And that's the difference
4:22between those two things. Attention and
4:25confirmation is what the 1 hour time
4:28frame is going to solve.
4:32Let's start with the bullish side.
4:34Exactly as you can see it here. Price
4:36trades below our CRT low. That
4:39manipulation tells me that price has
4:41reached the location I was waiting for.
4:44But I am not simply buying because the
4:46low has been taken. This is where a 1
4:49hour time frame takes over. What I need
4:52now is a 1-hour candle to close back
4:54inside that CRT range. So the sequence
4:57is very specific. price runs the CRT low
5:02and then the 1 hour time frame closes
5:04back above that boundary and inside the
5:07range. Only now does that bullish
5:10condition exist. And this sentence on
5:14the slide is probably the easiest way to
5:16remember the distinction. The run gets
5:18my attention. The close gives me the
5:21condition. For the bearish model, I
5:24simply invert the logic. Price needs to
5:27run the CRT high and then I require the
5:30one hour time frame to close back below
5:33that boundary and inside the range. Run
5:37the high, close back inside. Now the
5:40bearish condition exists and this is
5:42where the structure starts doing
5:44something very useful for us. If the CRT
5:48low gets run, but I never receive the
5:51qualifying one-hour close, I don't need
5:54to spend the next hour staring at five
5:56minute time frames and bullish setups
5:59trying to decide which one looks best. I
6:02haven't earned the right to look for an
6:04entry yet. The same applies if the CRT
6:08high is taken and the one hour condition
6:11never occurs. That means the lower time
6:14frame is no longer there to create trade
6:17ideas. It only becomes relevant after
6:20the higher time frames have already done
6:23their jobs. And once the location has
6:26been found and the condition has been
6:29confirmed, look at how little is
6:31actually left for us to decide.
6:35By the time I reach the 5-minute chart,
6:37two major decisions have already been
6:40made. The 4hour time frame has given me
6:42the location. The 1 hour time frame has
6:45confirmed the condition. So I'm not
6:48dropping onto the 5 minutes and starting
6:50my analysis again. I'm arriving there
6:53with one decision left. Execution.
6:57Let's continue with the bullish model.
7:00We've run the CRT low and received the 1
7:03hour close back inside the range. Now I
7:06move on to the five minute time frame
7:08and wait for a bullish change in the
7:11state of delivery or a CISD.
7:15Once I receive that bullish CISD, the
7:18sequence is complete and I can execute.
7:21My stop goes beyond the relevant CISD
7:24low and my primary target is 2 R. The
7:28opposing CRT boundary remains the
7:30broader structural objective for the
7:33bearish model. Nothing about the
7:36decision process changes. Price runs the
7:39CRT high. The 1-hour candle closes back
7:42inside. I move onto the five minutes and
7:46wait for a bearish CISD. Once that
7:49occurs, I can execute with my stop
7:52beyond the relevant CISD high. And
7:54again, my primary target is 2 R. Now,
7:59think about what we've actually done
8:00here because this is more important than
8:03memorizing another entry pattern. We've
8:06started with an entire chart full of
8:08information. The 4hour time frame
8:11reduced that down to where I care. The 1
8:15hour time frame reduced it even further
8:18to where I have a condition. And by the
8:22time I arrive on the five minutes, I'm
8:26not analyzing the market from scratch
8:28anymore. I'm waiting for one specific
8:31execution.
8:32That's why this becomes simpler as we
8:35move down through the time frames rather
8:38than more complicated. But there is one
8:41final missing piece I need to show you
8:44before the real trades. Because a
8:46complete trading strategy cannot only
8:49tell you when to enter. It needs to make
8:52it equally obvious when the trade
8:54doesn't exist at all.
8:58There are three places where this
8:59sequence can break. The first is simple.
9:02No CRT boundary run. If price hasn't run
9:06either side of the range, then the 4hour
9:09location hasn't produced what I'm
9:11waiting for. I don't skip ahead. The
9:14second is no qualifying 1hour condition.
9:20Price can run the CRT low or the CRT
9:22high, but if I don't receive the
9:24required 1 hour close back inside the
9:27range, manipulation alone isn't enough.
9:31Again, I don't skip ahead. And the third
9:34is no aligned 5 minute CISD. I can have
9:39the 4hour location. I can have the one
9:41hour condition, but if the five minute
9:44execution never confirms, there is no
9:47entry. This is the rule I want you to
9:50carry onto the live charts. If the
9:53sequence breaks, the trade does not
9:56exist. And that doesn't does something
9:59important for your decision-m. It means
10:02patience is no longer this vague
10:04instruction to sit on your hands and
10:06somehow be disciplined. You know exactly
10:09what you are waiting for. If I only have
10:13location, I know I need condition. If I
10:17have location and condition, I know I
10:20need execution.
10:22But if I have all three, I know exactly
10:25how the trade is structured. There is no
10:28need to compensate for a missing part
10:30because the se of the sequence by adding
10:32another indicator, another confirmation,
10:35another reason to convince myself that I
10:38should be in the market. Now, if I stop
10:41the video here, this would still just be
10:44a clean framework on five perfectly
10:47designed slides. And that's not enough.
10:50Almost every trading strategy looks
10:53convincing when somebody can choose the
10:55candles, draw the arrows, and show you
10:58the outcomes afterwards. And now we're
11:01going to remove the diagrams completely.
11:03And I'm going to go to the real chart.
11:05I'm going to hide as much of future
11:08price action as possible, and we're
11:10going to make these decisions in the
11:12order they would have actually happened
11:15when they were traded. We'll start with
11:17a valid setup and I'll show you exactly
11:20the same framework once we get to a
11:23bearish setup. And finally, I'll show
11:26you a setup that looks tempting but
11:28never earns the trade. That's where
11:31we'll find out whether this framework
11:33actually makes the chart simpler.
11:37But before I show you this framework on
11:39the real charts, I want you to think
11:40about something. If this already feels
11:43simpler than the way you've been
11:44trading, imagine what your trading could
11:46look like if your entire process was
11:48built this way, not another strategy
11:51saved in a folder that you're all the
11:53place next month. One methodology that
11:56you can understand deeply enough to open
11:58your charts and know where you're
12:00interested, what you're waiting for, and
12:03when you're allowed to execute, and when
12:06you should do absolutely nothing. That
12:09is what I've built the mentorship to
12:10teach. Because the goal isn't for you to
12:13spend the next five years doing what so
12:16many traders do, learning another
12:18strategy, changing your model after a
12:20losing week, adding another
12:21confirmation, watching another 100
12:24videos, and constantly feeling as though
12:27the answer is still one concept away. I
12:30want you to get to the point where
12:32trading feels structured. You open the
12:34chart with a process. You know what
12:37matters. You know what doesn't you
12:39understand why you're taking the trade
12:41before you take it. You know exactly
12:43what to do when you're wrong. You know
12:46exactly what to do when you're right.
12:48You know what to do when your conditions
12:49are met. That level of clarity is what I
12:53am teaching in the program. And this is
12:56where the mentorship goes so much
12:58further than I can realistically take
13:00you in one YouTube video. You get the
13:03complete methodology and structured
13:05education. But more importantly, you get
13:08to trade live with me every single day
13:12during London and New York sessions,
13:15both CFDs and futures. So, you're not
13:19only studying setups after the outcome
13:22is known. You're watching the
13:23methodology being applied while the
13:26candles are actually forming. What I'm
13:29looking at, what I'm waiting for, why
13:31I'm interested in one opportunity, and
13:32why I'm completely ignoring another.
13:36But their objective is not to make you
13:38dependent on me. It's quite the
13:40opposite. I want you to build a trading
13:43process that eventually becomes your own
13:46where you can sit down at your charts,
13:48follow your methodology, and make your
13:51own decisions with structure and defined
13:54risk. So, if you are tired of constantly
13:57searching for the next strategy and
13:59you're ready to put that energy into
14:01actually mastering one methodology, join
14:04us inside of the mentorship. That link
14:06is in the description box below. Go
14:09through the training, bring what you've
14:10learned into the live sessions, ask
14:13questions, review your execution, and
14:15start building the process you actually
14:17want to be trading a year from now. Here
14:22we are on our first example and this
14:24will be on gold. Again, we start on the
14:274hour time frame and we look at that 1
14:30to 5:00 candle or 2 to 6:00 candle
14:33depending on daylight savings time. What
14:37do we do? We go ahead and we mark out
14:39that candle low and we mark out the
14:41candle high. Now, in this example, we
14:43can clearly see this market is bearish
14:46and we have a bearish candle closure at
14:492:00. So, we can anticipate 6:00 to
14:52trade lower, but we stick to the rules
14:56and we follow the system. Now, that is
14:59everything I need you to do on the 4hour
15:01time frame. Now, we go to the 1 hour
15:04time frame and we wait for a run of that
15:07high or a run of that low. Just going to
15:10drag these levels across and we can see
15:12we have our CRT.
15:14Now, we are waiting for the low of the
15:16high to get taken. And as soon as that
15:19happens, we run the low. But what's
15:21important here, we don't close outside
15:24of this range low. We actually close
15:27back inside the range. And that is
15:29exactly what I want. So again, we are
15:32waiting for that hourly candle to run
15:34the low and close back inside. So we're
15:37not trading this candle. We are trading
15:39the following candle. And that is where
15:42I go to my fiveminut time frame. And
15:45this is where I'm waiting for a change
15:48in the state of delivery.
15:51It is just an order block being formed.
15:54And we can see here we run liquidity, we
15:56run a swing low plus we run a small fair
16:00value gap. So as soon as I get a closure
16:04above this down close candle, that
16:06becomes my autoblock formation and that
16:10is where I will take my entry. So as
16:14soon as we get that closure above that
16:16confirms my order block and this is
16:18where I can market execute. You can also
16:21take a retest of that CISD or that order
16:24block level. For me I prefer market
16:27executions but both will be fine. Stop
16:30loss covering that order block low. And
16:33again what's my first target? It's going
16:35to be 2 R.
16:38So here we have the trade. We can then
16:41extend this out to that range high
16:43because we have very nice equal highs
16:45for a 2.4R. And then we can also go
16:48ahead and take an entry on the retest.
16:51And we can see how very quickly a 2
16:53trade becomes a 4R position. And this is
16:57realistically how you can improve your
17:00reward to risk ratio. We can see we then
17:04expand higher and we hit that range high
17:07for a 4hour takeprofit or if you took a
17:10market execution it's a 2.41 take
17:14profit. If I go back to my 1 hour time
17:17frame we can beautifully see how that
17:19range was manipulated and we expand to
17:23the high. And again, if you look at this
17:25on the 4hour time frame, we can just see
17:28that beautiful candle range theory
17:31playing out.
17:34Here we have a bearish example on
17:36GBPUSD. Again, we are starting on the
17:384hour time frame and we have that 1:00
17:41till 5:00 4hour candle. Now, I want you
17:45to go ahead and mark out that candle low
17:47and I want you to mark out that candle
17:49high. that becomes my CRT high and my
17:52CRT low. If we look at this market, it
17:55is very clearly busy in an uptrend. So
17:58we will we are taught to trade with the
18:01trend but you will very quickly find
18:05markets and trends being manipulated and
18:07trading reversals often give better
18:10entries. So again we are sticking to our
18:13process. We are sticking to our rules.
18:17We go ahead on the 1 hour time frame.
18:19Here we have that high and that low and
18:22we are just going to be waiting for
18:24price to run either side of this range.
18:29Looking at this, we can see that we run
18:31the high, we close back inside that
18:34range high. So from 6:00 onwards, I am
18:39looking for a bearish change in the
18:41state of delivery on the fiveminut time
18:44frame.
18:45So here on the 5m minute what I'm
18:47waiting for now is very specific. I'm
18:50waiting for a bearish order block to
18:53form. So I want to see price close below
18:56bullish candles.
19:01At the moment that happens when I close
19:03below these two up close candles that
19:06becomes my order block and that is what
19:09I will be waiting for. So, I'm just
19:11waiting for price action to go ahead and
19:13close below those two up close candles.
19:20What happens here? We do get that run
19:22through. As a bonus, we run into fair
19:24value gaps on the way up. This becomes
19:27my entry. My stop loss covers the order
19:30block high.
19:32And in this case, we can see that
19:35targeting the range low gives me a not
19:38so favorable reward to risk ratio. So in
19:41a case like this, I would just extend it
19:44till 2 R and leave it fixed at 2 R. So
19:48this would then become my trade.
19:51Remember we have manipulated that London
19:53kill zone high that is at 1:00 till 5:00
19:564hour candle that is London kill zone.
19:59That is why this model is so powerful
20:02because we are trading reversals off of
20:04timebased liquidity
20:09and we just let this market do its
20:11thing. We do experience a deep draw down
20:13but we place our stop in a way that we
20:16can stay safe if the market tries to run
20:19against us and then eventually we do go
20:22down and we do hit full take profit.
20:26For our final example, we are here on
20:28ENQ and I want to show you an example of
20:30where a trade would not be valid. So
20:33again, like we do always, we have that
20:351:00 4hour candle. Don't mind if this is
20:382:00. It's just daylight savings time.
20:41So 2:00, 1:00, 4hour candle. I want you
20:44to go then mark out that candle low and
20:47mark out that candle high. There's
20:49nothing complicated about this. Now we
20:52go to the 1 hour time frame. And again
20:54nothing complicated. We are just waiting
20:57for price to run the high or run the low
20:59and close back inside. That is all that
21:02we are waiting for. And we can see we do
21:05run the low. We never get that close
21:07inside. And then price just starts
21:10running away.
21:12Now before you leave, forget the
21:14individual trades for a moment. And
21:15remember the hierarchy. The 4hour tells
21:18me where the previous completed 4hour
21:20candle gives me the CRT range. And I'm
21:23waiting for the one of those boundaries
21:25to get manipulated. The one hour tells
21:27me when the condition exists. Run the
21:30CRT low, close back inside. I have a
21:32bullish condition. Run the high, close
21:35back inside. I have a bearish condition.
21:37And the five minute tells me when to
21:39execute. I wait for an aligned CISD.
21:43My stop goes beyond that relevant CISD
21:46high or low. and my primary target is
21:49tor while the opposing CRT boundary
21:52remains the broader structural
21:55objective. That is the model. But the
21:58bigger lesson is the one I wish I'd
22:01understood much earlier. When I'm on the
22:044hour time frame, I am not worrying
22:07about my entry. When I'm on the 1 hour
22:10condition, I am not searching for a
22:12five-minute chart trying to anticipate
22:15it. And when I finally reach the five
22:17minutes, I'm not trying to decide
22:20whether I should be bullish or bearish,
22:23that work has already been done. That's
22:26what makes this framework so simple. Not
22:29fewer rules for the sake of having fewer
22:32rules, fewer decisions at each stage.
22:37And if this video changed the way you
22:39think about multiple time frames,
22:41subscribe because this is exactly what
22:43we're going to keep building on. Taking
22:45trading concepts that are usually made
22:48unnecessarily complicated and turning
22:51them into structured decision-making
22:53frameworks that you can apply. As
22:56always, I hope you enjoyed the video. If
22:58you did, leave a like, leave a comment,
23:00and I will see you in the next one.

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