Candle Range Theory - AlgoVisionUnderstanding Candle Range Theory (CRT) in the AlgoVision Indicator
Candle Range Theory (CRT) is a structured approach to analyzing market movements within the price ranges of candlesticks. CRT is founded on the idea that each candlestick on a chart, regardless of timeframe, represents a distinct range of price action, marked by the candle's open, high, low, and close. This range gives insights into market dynamics, and when analyzed in lower timeframes, reveals patterns that indicate underlying market sentiment and institutional behaviors.
Key Concepts of Candle Range Theory
Candlestick Range: The range of a candlestick is simply the distance between its high and low. Across timeframes, this range highlights significant price behavior, with each candlestick representing a snapshot of price movement. The body (distance between open and close) shows the primary price action, while wicks (shadows) reflect price fluctuations or "noise" around this movement.
Multi-Timeframe Analysis: A higher-timeframe (HTF) candlestick can be dissected into smaller, structured price movements in lower timeframes (LTFs). By analyzing these smaller movements, traders gain a detailed view of the market’s progression within the HTF candlestick’s range. Each HTF candlestick’s high and low provide support and resistance levels on the LTF, where the price can "sweep," break out, or retest these levels.
Market Behavior within the Range: Price action within a range doesn’t move randomly; it follows structured behavior, often revealing patterns. By analyzing these patterns, CRT provides insights into the market’s intention to accumulate, manipulate, or distribute assets within these ranges. This behavior can indicate future market direction and increase the probability of accurate trading signals.
CRT and ICT Power of 3: Accumulation, Manipulation, and Distribution (AMD)
A foundational element of our CRT indicator is its combination with ICT’s Power of 3 (Accumulation, Manipulation, and Distribution or AMD). This approach identifies three stages of market movement:
Accumulation: During this phase, institutions accumulate positions within a tight price range, often leading to sideways movement. Here, price consolidates as institutions carefully enter or exit positions, erasing traces of their intent from public view.
Manipulation: Institutions often use manipulation to create false breakouts, targeting retail traders who enter the market on perceived breakouts or reversals. Manipulation is characterized by liquidity grabs, false breakouts, or stop hunts, as price momentarily moves outside the established range before quickly returning.
Distribution: Following accumulation and manipulation, the distribution phase aligns with the true market direction. Institutions now allow the market to move with the trend, initiating a stronger and more sustained price movement that aligns with their intended position.
This AMD cycle is often observed across multiple timeframes, allowing traders to refine entries and exits by identifying accumulation, manipulation, and distribution phases on smaller timeframes within the range of a higher-timeframe candle. CRT views this cycle as the "heartbeat" of the market—a continuous loop of price movements. With our indicator, you can identify this cycle on your current timeframe, with the signal candle acting as the "manipulation" candle.
How to Use the AlgoVision CRT Indicator
The AlgoVision CRT Indicator is designed to assist traders in identifying actionable points within the candle range framework. Our indicator operates by generating signals on the close of the second candle, setting up the expectation to trade the third candle as the "manipulation" candle. This is where price movement in a targeted direction typically occurs. Once you receive a signal on candle two's close, you can prepare to execute a trade on the next candle based on the manipulation phase within the CRT framework.
By setting alerts on a higher timeframe, you can receive either bullish or bearish signals that prepare you to enter trades on a lower timeframe. For instance, a bullish signal on the higher timeframe may signal to watch for a setup on the lower timeframe, allowing for precision entries during the accumulation or manipulation phases.
Conclusion By combining CRT with ICT Power of 3, the AlgoVision Indicator allows traders to leverage the CRT candlestick as a versatile tool for identifying potential market moves. This method provides beginners and seasoned traders alike with a robust framework to understand market dynamics and refine trade strategies across timeframes. Setting alerts on the higher timeframe to catch bullish or bearish CRT signals allows you to plan and execute trades on the lower timeframe, aligning your strategy with the broader market flow.
CRT
Daily CRTDaily CRT Indicator
The Daily CRT Indicator is a custom technical analysis tool designed to help traders identify and visualize key price patterns on the daily timeframe. Specifically, it detects and marks the "Sweep and Close Inside" pattern, which is a price action pattern that can signal potential trading opportunities.
Key Features:
Pattern Detection:
The indicator detects two specific price action patterns:
Sweep and Close Above: When the current price sweeps above the previous day’s high and closes inside the range, indicating a potential bullish breakout or continuation.
Sweep and Close Below: When the current price sweeps below the previous day’s low and closes inside the range, signaling a potential bearish move.
Horizontal Lines:
The indicator automatically draws horizontal lines at the previous day’s high and low levels whenever a pattern is detected, providing a visual reference for key support and resistance zones.
These lines are displayed in real-time on the chart and adjust dynamically as new patterns form.
Customizable Line Appearance:
Choose the color, thickness, and style (solid, dashed, or dotted) of the lines to fit your preferred chart aesthetic.
Alert System:
The indicator comes with built-in alerts. Set an alert to notify you when the Sweep and Close Inside pattern is detected, helping you stay on top of potential trade setups.
History Management:
Show History: Optionally display the detected patterns on previous bars (past patterns).
Customizable History Duration: Control how far back you want to view the patterns, allowing you to adjust for a cleaner chart and focus on the most recent setups.
Visual Labels:
When the pattern is detected, the indicator can display a label under the bar (customizable) to highlight the occurrence of the pattern, making it easier for traders to spot potential trade signals.
Built for the Daily Timeframe:
This indicator is specifically designed to work on the daily timeframe and is ideal for swing traders and longer-term traders who are focused on the daily price action and want to capture patterns that indicate potential market reversals or breakouts.
How It Works:
The indicator monitors the previous day's price action and looks for situations where the current price action either sweeps the previous day's high or low and then closes inside the range of the previous day's bar. This type of price movement can often signal that a reversal or continuation is about to occur. The indicator marks these setups by drawing horizontal lines and optionally displays labels for quick identification.
Settings & Customization:
Line Color: Customize the color of the lines marking the previous day’s high and low.
Line Thickness: Choose from different thickness levels for better visibility.
Line Style: Pick from solid, dashed, or dotted styles.
Show History: Toggle the display of historical patterns, with the option to control how many days back to show.
Show Labels: Option to toggle the display of labels when the pattern is detected.
Alert Condition: Receive alerts when a pattern is detected, ensuring you never miss a trade opportunity.
Ideal For:
Swing Traders: This indicator is perfect for traders looking to capture swings in the market based on daily price action.
Pattern Traders: Those who trade based on specific chart patterns will benefit from this tool, as it identifies important reversal and breakout signals.
Technical Analysts: Anyone who incorporates price action patterns into their strategy can use this tool as a supplemental analysis tool to improve their trading decisions.
By using the Daily CRT Indicator, you’ll have a powerful tool to help you spot important price action patterns that may indicate key market moves. Whether you're looking to catch breakouts, reversals, or simply track significant support and resistance levels, this indicator is a versatile addition to your trading toolkit.
This description provides a clear understanding of how the Daily CRT Indicator works and what value it offers, making it easy for traders to know if it fits their trading style. Feel free to tweak the description further depending on the details you’d like to emphasize.
Candle Range Theory | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Candle Range Theory Indicator! This powerful tool offers a strategy built around the Candle Range Theory, which analyzes market movements through the relative size and structure of price candles. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new Candle Range Theory Indicator :
Implementation of the Candle Range Theory
FVG & Order Block Entry Methods
2 Different TP / SL Methods
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The Candle Range Theory (CRT) indicator operates by identifying significant price movements through the relative size and structure of candlesticks. A key part of the strategy is determining large candles based on their range compared to the Average True Range (ATR) in a higher timeframe. Once identified, a breakout of either the high wick or the low wick of the large candle is required. This breakout is considered a liquidity grab. After that, the indicator waits for confirmation through Fair Value Gaps (FVGs) or Order Blocks (OBs). The confirmation structure must be the opposite direction of the breakout, for example if the high wick is broken, a bearish FVG is required for the short entry. After a confirmation signal is received, the indicator will trigger entry points based on your chosen entry method (FVG or OB), and exit points will be calculated using either a dynamic ATR-based TP/SL method or fixed percentages. Alerts for Buy, Sell, Take-Proft, and Stop-Loss are available.
🚩 UNIQUENESS
This indicator stands out because it combines two highly effective entry methods: Fair Value Gaps (FVGs) and Order Blocks (OBs). You can choose between these strategies depending on market conditions. Additionally, the dynamic TP/SL system uses the ticker's volatility to automatically calculate stop-loss and take-profit targets. The backtesting dashboard provides metrics about the performance of the indicator. You can use it to tune the settings for best use in the current tiker. The Candle Range Theory approach offers more flexibility compared to traditional indicators, allowing for better customization and control based on your risk tolerance.
⚙️ SETTINGS
1. General Configuration
Higher Timeframe: Customize the higher timeframe for analysis. Recommended combinations include M15 -> H4, H4 -> Daily, Daily -> Weekly, and Weekly -> Monthly.
HTF Candle Size: Define the size of the higher timeframe candles as Big, Normal, or Small to filter valid setups based on their range relative to ATR.
Entry Mode: Choose between FVGs and Order Blocks for your entry triggers.
Require Retracement: Enable this option if you want a retracement to the FVG or OB for entry confirmation.
Show HTF Candle Lines: Toggle to display the higher timeframe candle lines for better visual clarity.
2. Fair Value Gaps
FVG Sensitivity: You may select between Low, Normal, High or Extreme FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivities resulting in spotting bigger FVGs, and higher sensitivities resulting in spotting all sizes of FVGs.
3. Order Blocks
Swing Length: Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
4. TP / SL
TP / SL Method:
a) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
b) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic Risk: The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
CRT Trades (turtle soup, A-M-D ranges with inside bars)CRT means Candle Range Theory. Every single candle is a range, on every single timeframe. Ranges may be either manipulated - turtle souped or broken - engulfed - closed above/below and retested.
CRT is usually presented as a 3 candle model. However it may consist of more than 3 candles due to inside bars. Inside bar is the candle where high is not higher then previous candle high and low is not lower then previous candle low.
First candle represents accumulation (may consist of more candles - inside bars), second candle represents manipulation (turtle soup) and third candle represents distribution. The abbreviation for that is A-M-D.
In accumulation the range with specific high and low is created. In manipulation (turtle soup) the high or low of the range is manipulated - liquidity taken and price should usually reverse back to the range. In distribution price is reversing back to the opposite side of the range. On higher timeframe it looks like manipulation candle wick is higher/lower than previous range high/low (may consist of 1 or more inside bar candles) but the body must not close above/below previous range high/low. Otherwise it is not manipulation (turtle soup) most likely and price should continue in direction of the candle close. Distribution candle should touch opposite side of range and it is mostly heavy and fast candle.
CRT model can be found on higher timeframe (e.g. 4h) and entries can be found on lower timeframe (e.g. 15m). You always use only lower timeframe on your chart because CRT model on the higher timeframe is shown on the lower one and also you can plan entries on the lower timeframe. You are able to change CRT model higher timeframe in the indicator settings.
There are two types of entries:
simple - wait for manipulation candle to close on higher timeframe (HTF) and then enter on lower timeframe (LTF) above open of the distribution candle on HTF if it is short or on LTF below open of the distribution candle on HTF if it is long. These entries can be done by market order.
advanced - wait for the break of previous range high/low and enter by limit order when price reverses back to the range and retraces to the order block or fair value gap created by the breaker candle.
Stop loss can be placed above/below of the top/bottom created by manipulation candle. First take profit should be placed in 1/2 of the accumulation range and second take profit should be placed at the opposite range of accumulation range.
It is possible to filter only particular accumulation (range) and manipulation (turtle soup) candles depending also on timezone set in the settings. For example on 4h CRT model if you fill input "indices" for section "range" like 1,2 and input "indices" for section "turtle soup" like 3,4 then you are awaiting the range to form during asia session and manipulation during london session if the timezone is somewhere around "UTC+2".
Dotted lines represent turtle soup of previous range and solid lines represent engulfing candle of the breaker candle on lower timeframe. When the engulfing is closed you can look for entries either by market order after closing or by limit order when the price retraces to order block (created by breaker candle) or fair value gap (created by engulfing).
Recommendations for combining lower (entries) and higher (crt model) timeframes:
1D CRT model => 1h entries,
4h CRT model => 15m entries,
1h CRT model => 5m entries,
15m CRT model => 1m entries.
CRT IndicatorCandle Range Trading (CRT) Indicator
The CRT Indicator identifies potential trading opportunities by analyzing specific candlestick patterns. This script is designed to detect both bullish and bearish CRT patterns and provides visual cues directly on your chart.
Features:
Pattern Detection:
Analyzes two consecutive candles to identify the CRT pattern.
Detects both bullish and bearish setups based on the relative positions of the candles.
How It Works:
Bearish CRT Pattern:
The script identifies a bearish CRT when:
The first candle is bullish (closing price is higher than the opening price).
The second candle is bearish (closing price is lower than the opening price).
The second candle’s high exceeds the high of the first candle.
The closing price of the second candle falls within the range of the first candle.
Bullish CRT Pattern:
The script identifies a bullish CRT when:
The first candle is bearish (closing price is lower than the opening price).
The second candle is bullish (closing price is higher than the opening price).
The second candle’s low is below the low of the first candle.
The closing price of the second candle falls within the range of the first candle.
Visual Signals:
A red triangle is plotted above the candles for a bearish CRT pattern.
A green triangle is plotted below the candles for a bullish CRT pattern.
How to Use:
Monitor the chart for the appearance of red and green triangles.
Green triangles suggest potential bullish movements.
Red triangles suggest potential bearish movements.
Use these signals as part of a comprehensive trading strategy and combine with other technical indicators for best results.
Settings:
This indicator operates with default settings for detecting CRT patterns and does not include customizable parameters.
Limitations:
The CRT Indicator is based on two consecutive candles and does not account for broader market trends or other indicators.
Be aware that false signals may occur in volatile or choppy market conditions.
The indicator does not provide entry points, profit targets, or stop loss levels, which should be managed based on individual risk tolerance and strategy.
Note: The CRT Indicator is for informational purposes only and should be used in conjunction with other forms of analysis and proper risk management. Always test any strategy thoroughly before applying it to live trading.
HTF Multi Candles DisplayHTF Multi Candles Display
Description
The HTF Multi Candles Display is a powerful and versatile indicator that overlays higher timeframe (HTF) candles on your current chart, providing traders with a comprehensive multi-timeframe analysis tool in a single view. This indicator is particularly valuable for traders who employ strategies that rely on higher timeframe context, such as the Power of Three strategy, Turtle Soup, Candle Range Theory (CRT), and Inner Circle Trader (ICT) concepts like Price Delivery (PD) arrays.
> **Notice**: If you find this indicator beneficial for your trading, I would greatly appreciate any contribution in the form of TradingView Coins. Thank you for your support!
Key Features
1. Displays up to 5 higher timeframe candles
2. Customizable higher timeframe selection (5m to Monthly)
3. Adjustable candle appearance (colors, wicks, width)
4. Time labels for easy reference
5. Optional vertical lines to separate HTF candles
6. Offset adjustment to position candles away from the chart edge
7. Customizable wick and border colors
8. Flexible vertical line styles (solid, dashed, dotted)
9. Adjustable time label font sizes
How it Helps Traders
### 1. Multi-timeframe Analysis
By overlaying higher timeframe candles on your current chart, this indicator allows you to easily identify key levels, trends, and potential reversal points across different timeframes without switching between multiple charts.
### 2. Power of Three Strategy
This indicator is invaluable for traders using the Inner Circle Trader (ICT) Power of Three strategy, which focuses on accumulation, manipulation, and distribution phases. The higher timeframe candles help identify these phases more accurately, allowing for better trade entries and exits:
- Accumulation: Identify periods of sideways price action on higher timeframes.
- Manipulation: Spot false breakouts or breakdowns on lower timeframes that are contained within higher timeframe ranges.
- Distribution: Recognize when price is approaching significant higher timeframe levels where smart money may begin to distribute.
### 3. Turtle Soup
Traders can use this indicator to spot potential Turtle Soup setups by identifying key breakout levels on higher timeframes and comparing them to current price action. This helps in:
- Identifying false breakouts that may lead to Turtle Soup trade opportunities.
- Confirming the validity of breakouts by comparing lower timeframe momentum to higher timeframe structure.
### 4. Candle Range Theory (CRT)
This indicator is extremely useful for traders applying Candle Range Theory. CRT focuses on the relationship between the current candle's range and the previous candle's range. By displaying higher timeframe candles, traders can:
- Easily compare candle ranges across multiple timeframes.
- Identify potential breakout or breakdown levels based on the previous HTF candle's range.
- Spot instances where the current lower timeframe price action is testing or breaking significant HTF candle ranges.
- Recognize potential reversal points where price reaches the extremes of higher timeframe candle ranges.
### 5. Support and Resistance
Higher timeframe candles often represent significant support and resistance levels. This indicator makes it easy to spot these levels and incorporate them into your trading decisions, allowing you to:
- Identify key support and resistance levels from higher timeframes.
- Anticipate potential price reactions at these levels on your current timeframe.
- Plan entries, exits, and stop-loss placement with greater precision.
### 6. Trend Identification
By displaying multiple HTF candles, traders can quickly assess the overall trend direction on higher timeframes, helping to align trades with the broader market direction:
- Easily visualize the trend on higher timeframes without changing your chart.
- Identify potential trend changes or continuations based on HTF candle patterns.
- Align your trades with the higher timeframe trend for potentially higher probability setups.
### 7. Enhanced Decision Making
The combination of current timeframe price action and higher timeframe context allows for more informed decision-making, potentially improving trade quality and risk management:
- Validate trade setups by ensuring they align with higher timeframe structure.
- Avoid low-probability trades that conflict with higher timeframe trends or key levels.
- Adjust position sizing based on the proximity to significant HTF levels.
### 8. Time Efficiency
Instead of constantly switching between timeframes, traders can view all necessary information on a single chart, streamlining their analysis process:
- Reduce the time spent switching between multiple charts.
- Quickly assess market conditions across various timeframes.
- Improve focus by having all relevant information in one view.
### 9. ICT Price Delivery (PD) Arrays
The HTF Multi Candles Display is particularly useful for traders familiar with Inner Circle Trader (ICT) concepts, especially in identifying Price Delivery (PD) arrays:
- Visualize potential PD arrays across multiple timeframes without switching charts.
- Identify key swing highs and lows that form PD array structures.
- Recognize patterns such as Breaker Blocks, Inefficient Price Points, and Fair Value Gaps more easily on higher timeframes.
- Spot potential areas where smart money might be accumulating or distributing by analyzing the relationship between HTF candles.
- Use the series of HTF candles to identify potential Order Blocks, which are often key components of PD arrays.
- Recognize Mitigation Points and Liquidity Voids more effectively by analyzing the structure of multiple HTF candles.
By displaying a series of HTF candles, this indicator allows traders to more easily identify and validate ICT concepts like PD arrays, enhancing their ability to spot high-probability trading opportunities and potential market turning points.
Conclusion
The HTF Multi Candles Display indicator is suitable for traders of all levels, from beginners looking to understand market structure across timeframes to experienced traders refining their multi-timeframe analysis techniques. Whether you're day trading, swing trading, or looking for longer-term positions, this indicator provides valuable insights to enhance your trading strategy.
By incorporating higher timeframe context into your analysis, you can make more informed trading decisions, identify high-probability setups, and potentially improve your overall trading performance. The HTF Multi Candles Display is a versatile tool that adapts to various trading strategies and helps traders gain a deeper understanding of market dynamics across multiple timeframes, including advanced concepts like ICT Price Delivery arrays.
