FX.co ★ Mohammadhamza | Forex Education

Hello Fellow Traders When looking at a daily or 4-Hour chart, we often see long candle wicks and call them simple "rejections." But have you ever wondered what actually happens inside those wicks on a lower timeframe? Today, let's break down an advanced price action framework called Candles Range Theory (CRT). This concept allows you to dissect High Timeframe (HTF) candle highs and lows to uncover sniper, low-risk entries on the Lower Timeframe (LTF) using liquidity sweeps and changes in delivery.

Understanding the Blueprint of CRT The core idea behind CRT is that every HTF candle is a self-contained range containing a high (CRH - Candle Range High) and a low (CRL - Candle Range Low). Institutions use these boundaries to engineer liquidity. Here is the mechanical step-by-step process of how CRT delivers price: The HTF Key Level Reference: Price approaches a major HTF Key Level (like a 4H order block, support/resistance, or weekly high/low). This level acts as our primary magnetic anchor for liquidity. The Liquidity Grab (Ts): Price aggressively sweeps above the CRH (moving into premium pricing) or below the CRL. This stop hunt behavior is known as Ts (Targeted Liquidity Sweep). It traps breakout traders and stops out early sellers. CISD (Change in State of Delivery): Once the liquidity is taken out at the high, you zoom down to the 15-minute or lower timeframe and wait for CISD. This occurs when the order flow shifts from bullish to bearish delivery (similar to an internal CHoCH or candle body closure showing aggressive selling). The Expansion to CRL: After CISD is confirmed below the Ts level, the market structure shifts completely. Price is now highly likely to expand downward toward the CRL or lower timeframe discount arrays to target opposing liquidity. Core Takeaways for Your Trading Plan: Timing & Context: Never trade CRT in the middle of nowhere. Always look for it reacting at an established HTF Key Level. The Wick Secret: A long wick on a 4H candle is simply a completed Ts + CISD cycle playing out on the 15m chart. Risk Management: Your protective stop loss goes safely above the Ts high, and your profit target sits securely at the opposing CRL. Reminder: Always combine Candles Range Theory with your overall market bias, higher timeframe trend direction, and tight risk management rules. Do you utilize HTF candle wicks to refine your entries, or do you find it difficult to time the exact shift on lower timeframes? Let's discuss your execution models in the comments below!