CRT/ORB Strategy
By:Poring | HoaxSnowden
Rationale:
I’ve created this approach for the sole reason of “Anong gagawin ko if di magwork yung CRT
Strategy ko?”. Nawawalan kaagad ako ng entry because of that particular reason, not until
natutunan ko na may concept ng ORB, wherein kabaliktaran siya ng entry model sa CRT. Yung
CRT is all about staying inside the range, while ORB focuses on what to do kapag lumagpas sa
CRT yung candle. This approach is a double-edged sword, kumbaga, kapag nakakita ng
magandang CRT, pwedeng PO3 or ORB approach. I want to create a kind of approach similar
to how we solve a rubik's cube na parang conditional/decisional. What to do if ganito yung
makita kong candle, what to do if nasa loob pa rin ako ng range, what to do if nasa labas ako ng
range. Para hindi lang ako nagsasayang basta basta ng position, pero kahit anong mangyari,
pwede ako mag entry.
Candle Range Theory (CRT)
The concept of the CRT is that every candle serves as a range in a lower timeframe. A single
candle in the 1 Day Timeframe tells us a lot if we are going to look at it in the lower timeframe
(5m, 15m, 1h). This means that if we could identify a candle, we could use it to identify the highs
and lows that will be used as possible supports or resistance. Kapag hinalo with Smart Money
Concept, magkakaroon ng mas magandang result.
Reference: Best CRT Trading Strategy | Candle Range Theory Explained
Using the Candle Range Theory in Trading
The main idea with the Candle Range theory is that, pwede tayong gumamit ng kahit anong
candle as our basis. We just need to define its highs (CRH) and low (CRL), then wait for the
next candle to do something with that range. The main goal sa CRT is to achieve the following
structure:
Ideal CRT Structure for Short Entry
And the best part about this? We could identify this structure in any candle. We just use the first
candle as the reference, we identify its candle range high and candle range low, then we just
wait for the next candle to do a liquidity sweep, then, for the last candle, we enter. Look at this
example, we could see the CRT concept happening, but not all the time:
Steps in Identifying a Good CRT Setup:
1. Find the Candle we will use as basis.
2. Wait for the second candle to make a liquidity sweep in either the CRH or CRL
A Valid Liquidity Sweep. An Invalid Liquidity Sweep.
3. Then, for the third candle, we entry based on the opposite side where the liquidity sweep
happened.
Short Entry on the Third Candle
But the question now is:
● Kailan natin to dapat ginagamit? Uptrend or Downtrend?
● May specific confirmations ba before tayo pumasok sa isang trade?
● Applicable ba ito sa lahat ng candle na makita ko?
Confirmations in a CRT Setup
Once again, hindi pwede na nagbabase lang tayo sa higher time frame candles. We need to
look inside those ranges to identify much more. Once again, the goal is to combine this with
Smart Money Concept to really see the strategy, to ensure na maganda and mataas yung
possibility na maganda yung setup natin.
Sa pagkakanood ko nung reference ko, same na same setup ito sa ginagawa ni Sir Tope. We
need to find a sweep, followed by an FVG, then a Change of Character, then kapag nag
tap/touch again as FVG, we enter.
Lower Timeframe CRT Structure (Look for FVG for Entry)
Assume that the image above is the 3 Candle CRT. Yung pinakaleft side is an uptrend (1st
candle), tapos yung gitnang part is nagkaroon ng liquidity sweep (2nd candle) followed by a Fair
Value Gap, then sa pinaka right side ng chart (3rd candle), we wait for the price to touch the Fair
Value Gap, tapos we enter short.
Recap:
1. Wait for a liquidity sweep sa itaas or sa ibaba ng candle range. (A confirmation na may
intent na magmove ang market ng mabilis)
2. Wait for a Fair Value Gap to form (A confirmation na mabilis ang movement)
3. Wait for a Change of Character (A confirmation na may possible reversal ng trend.
4. Kapag nag touch yung market sa FVG, we take entry.
Guys, may time na yung CRT setup could take 4, 5, or more candle to finish that setup that we
created.
For example, we found our first candle, then the sweep did not happen on the second candle, it
could happen on the third, fourth, or even fifth candle before the reversal.
Note: Any time, this candle might form, as long as walang liquidity sweep na nagaganap,
we wont take entry. And parehas din siya ng entry mapa bearish or bullish ang candle.
Check the image below for reference.
Power of Three: Accumulation, Manipulation, Distribution
1. Accumulation - Eto yung mga candle na magsetup tayo ng CRH/CRL and waiting
game din dito hanggang walang liquidity sweep na nagaganap
2. Manipulation (The Candle with the Liquidity Sweep) - Eto yung iniintay natin for
confirmation
3. Distribution (The Reversal Candle) - Dito tayo mageentry kapag natouch na yung FVG
Pairing of Timeframes for CRT
We always check CRT in a higher timeframe, while we check for lower timeframe structure
when we enter.
Higher Timeframe CRT Lower Timeframe Structure (Trade Entry)
Monthly Daily
Weekly 4 Hour
Daily 1 Hour
4 Hour 15 Minutes
1 Hour 5 Minutes
15 Minutes 1 Minute
Targeting Premium and Discount Areas within CRT
When we define a candle range, we must make sure that if we have a bullish first candle, we
entry in the premium area for selling, and vice versa (entry in the discount area if we have a
bearish first candle)
But, how do we identify the premium/discount area?
Premium area is technically the upper side of the CRT that we defined, while discount area is
the lower half.
In the image above, we entered short because we are in a premium area after that liquidity
sweep, but if we ended up in the discount area, we won’t enter the trade.
We could also use the Premium and Discount to enter trades like this:
We could try to find entry points by identifying previous highs and lows as our main basis for a
premium and discount area. We are looking to go short if we are in the premium area, and we
are looking to go long if we are in the discount area. Hindi lang siya naaapply sa isang candle,
but we could also apply it sa ating market structure by marking highs and lows ng isang candle
Pwede rin magentry kahit lagpas na sa discount/premium in a single candle, basta we follow the
rule of TP at 50%/Trailing Stop, saka FVG.
When do we enter trade?
We would only enter trade if we are expecting a reversal. We can’t expect to short if we are in
an uptrend. We should also look at the higher timeframe, find Change of Characters that will
confirm that we are in a possible downtrend. That is where we use CRT.
Etong image sa taas, may dalawang CRT setup na nagwork, bakit kaya?
1. The first setup was done sa pinakatuktok, nalagpasan niya yung liquidity sweep nung
isa, meaning that there is really a possible Change of Character after nung sweep sa
pinakataas. Which we see happened.
2. The next setup was done hindi sa pinakatuktok, but nangyari kasi siya sa loob ng FVG
after ng isang Change of Character, which means that reversal is most likely to happen.
Bat etong trade hindi nagwork? Hindi tayo pwede mag expect ng short sa uptrend. Lalo na din
kakatapos lang ng bullish order block. Always remember, sa CRT, reversals ang hanap natin.
CRT References:
1. [Link]
2. [Link]
3. [Link]
4. [Link]
Risky Scalping Plays (CRT)
If you are using the ORB and want mo magscalp, hanggat nasa loob ng range na ginawa mo
yung market, you could literally do shorts and long sa loob. Kapag nirespect yung CRH, edi mag
short ka, if nirespect yung CRL, pwede ka mag long, pero super risky nito. Mas prefer ko if
gagamit ka nalang ng CRT if di matupad yung iyong entry sa ORB.
Opening Range Breakout (ORB)
Similar concept sa CRT, but in this case, we are only interested sa first candle na mabubuo after
mag open ng isang market (Asian Open, London Open, New York Open). That candle will
determine kasi kung ano yung magiging resistance saka support ng session na yun. For
example, nagopen na yung London Session, it means that the first candle na mabubuo dun sa
London Session, ayun na yung magiging temporary basis natin. We apply the same concept as
CRT na Candle Range High (ORH) saka Candle Range Low (ORL). Pero pinakamaganda
“daw” gamitin ang ORB Strategy sa New York kasi mas fast paced ang market saka maraming
trader din ng ganitong oras. Ang New York opening is at 9:30am, we wait for the first candle to
close, tapos gamitin na natin si ORB strategy.
Pwede siya sa 30m, 15m, or even 5m timeframe.
Pero kadalasan ng mga ORB Traders, they use the 15minute opening candle kasi hindi siya
ganon katagal, and they could anticipate more from the market, unlike 30 minutes na matagal
kang magiintay, or kay 5 minutes na super volatile or malikot na market. Pero may strategy
under kay ORB to find trade entries.
The question now is:
1. How to use the ORB Trading Strategy?
2. May confirmations ba to use this strategy?
3. When to entry using this strategy?
Using the ORB Trading Strategy
1. We wait for the first 15m TF candle to form after a Major Session Opening (Asian,
London, or New York). Then we mark the Opening Range High (ORH) and Opening
Range Low (ORL) of that Candle
2. Then check the 1m Time Frame to get a better look at the market structure
3. First strategy: We wait for a breakout. We need to wait for the candle to close above or
below the level, hindi lang wick, dapat body talaga, then we enter.
4. Second Strategy: We could wait for a retest of that ORB High/Low after mag body close
sa labas ng range, then we enter kaagad.
5. Third Strategy: If marespect yung ORH/ORL after ng breakout, we need to wait for a
break of structure na maganap similar to this, then we enter:
6. In summary, sa fundamental concept ng ORB, we could do have three possible options
for entry:
Combining ORB with Smart Money Concept (Confirmations)
For this one, it is fairly simple, naghahanap lang tayo ng FVG na bubuo sa range na ginawa
natin (ORH/ORL). It signifies na may fast movement na nangyayari sa market. Then we entry
kapag natouch na yung FVG na yun. We are following the market para higher chance of
winning. Possible na yung FVG is maform sa loob ng range, or sa mismong line, or sa labas ng
line. Basta may FVG, entry us kapag na touch yung FVG na yun.
Green Rectangle shows Fair Value Gap (FVG)
Similar strategy sa CRT, right? Nag entry tayo ng trade kapag may FVG, pero this time, the
difference is that, sa labas ng range, hindi tayo sa loob ng range nageentry. That is ORB.
Pero ano ba yung mga valid setups sa isang ORB na may FVG? Check natin here:
Never dapat malalagpasan yung FVG, kasi it means that, hindi marerespect yung Fair Value
Gap, and it could result in a failed trade. Kaya we always set our stop loss sa baba ng FVG.
False Breakout in ORB (The CRT Strategy)
False Breakout (Familiar diba? CRT lang to)
Always Look for Previous Highs/Lows
If kasi gagami tayo ng ORB, baka pala yung current candle natin is kalevel na nung previous na
high, and if magbreakout dun, possible na baka liquidity sweep ang maganap instead of a reak
breakout.
Itong setup na ito, if mag setup kayo ng ORB sa pinakakanan na candle, nalagpasan na niya
yung previous high, it could mean na baka false breakout lang. Kaya dapat ingat, always check
the previous setup sa market. If sa CRT, ayan ang want natin, yung nasa pinakatuktok or
pinakababa tayo to make our trade a success, kasi reversal hanap natin sa CRT. For ORB, it is
a no no. (Pero if ganyan, edi CRT strat us)
Eto yung possible na mangyari kasi, kapag nalagpasan natin yung previous high, maging wick
lang siya. Kasi madaming stop loss above sa area na yan, it is a fuel for an upcoming
downtrend due to liquidity sweeps or grab na ginagamit ng mga Smart Money to fuel their
influence sa market.
Risky Scalping Plays (CRT)
If you are using the ORB and want mo magscalp, hanggat nasa loob ng range na ginawa mo
yung market, you could literally do shorts and long sa loob. Kapag nirespect yung CRH, edi mag
short ka, if nirespect yung CRL, pwede ka mag long, pero super risky nito. Mas prefer ko if
gagamit ka nalang ng CRT if di matupad yung iyong entry sa ORB.
ORB References:
1. [Link]
2. [Link]
3. [Link]
4. [Link]
5. [Link]