Candle Range Trading (CRT) with Alerts

The Candle Range Trading (CRT) with Alerts indicator identifies potential reversal or continuation setups based on a specific two-candle price action pattern designed for scalp and swing trading.

Usage

The indicator identifies two primary signals:

• Bullish CRT: Identified when a bearish candle is followed by a bullish candle that reaches a lower low but manages to close within the range of the previous candle. This appears as a green triangle below the price.
• Bearish CRT: Identified when a bullish candle is followed by a bearish candle that reaches a higher high but closes within the range of the previous candle. This appears as a red triangle above the price.

Traders often use these patterns to identify "trapped" price action where a move beyond a previous candle's range fails to sustain, suggesting a potential shift in momentum. It is recommended to use these signals alongside trend filters, support and resistance levels, or volume analysis.

Details

The CRT pattern focuses on the relationship between two consecutive candles:

• Expansion & Rejection: The second candle must extend beyond the high (for bearish) or low (for bullish) of the first candle, representing a failed breakout or a liquidity grab.
• Range Retention: Despite the extension, the second candle must close back within the high-low range of the first candle.

The tool includes an optional visual box feature that marks the CRT High and CRT Low of the qualifying pattern, providing clear levels for stop-loss placement or breakout targets.

Settings

• Show CRT High/Low: Toggles the visibility of horizontal lines marking the high and low of the two-candle CRT pattern.

FAQ

How do I use the Candle Range Trading (CRT) with Alerts?

Look for the triangular plots on your chart. A green triangle suggests a bullish CRT pattern, while a red triangle suggests a bearish CRT pattern. These are best used in the direction of the prevailing trend or at key value areas.

What do the grey lines represent?

When the "Show CRT High/Low" setting is enabled, the grey lines mark the absolute highest and lowest points reached by the two candles forming the CRT pattern, which can serve as technical reference points.

How can I get access to Candle Range Trading (CRT) with Alerts?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.