TLDR;
This video emphasizes the importance of understanding candle anatomy for successful CRT (Candle Range Trading). It highlights that focusing on candle analysis, specifically on higher time frames (4-hour, daily, and weekly candles), is crucial before considering any trading patterns or entry models. The video also addresses the common pitfall of excessive lower time frame trading, which often leads to losses, and advocates for fewer, well-analyzed trades for long-term profitability.
- Candle anatomy is crucial for successful CRT trading.
- Focus on analyzing 4-hour, daily, and weekly candles.
- Avoid excessive lower time frame trading and prioritize fewer, well-analyzed trades.
Introduction to Candle Anatomy and Its Importance in CRT [0:01]
The video introduces the concept of candle anatomy as a critical component for understanding and succeeding in CRT (Candle Range Trading). It asserts that traders who neglect candle anatomy are likely to fail in the long run. The content is aimed at both private and public students, with a reminder that private content will become available in October. The speaker urges viewers to focus and take notes on the nuances of candle anatomy.
The Pitfalls of Pattern Trading on a Single Time Frame [1:25]
The discussion critiques the common practice of pattern trading on a single time frame, which is prevalent among ICT, SMC, supply and demand, Elliot wave, harmonic, WOFF, price action, and fractal traders. This approach is described as blind pattern trading without context, narrative, or bias. The video suggests that those who advance beyond this limited approach eventually become CRT and turtle shoe traders, indicating a progression towards more sophisticated trading strategies.
Focusing on Candle Analysis Before Pattern Recognition [3:42]
The speaker emphasizes the importance of trading candles by focusing on the opening and closing times and what happens in between. Before considering any CRT pattern or entry model, traders must first decide which candle they are trading. The speaker restricts trading to 4-hour, daily, and weekly candles for beginners and intermediate traders, with advanced traders potentially expanding to monthly, 3-month, 6-month, and 12-month candles. The fractal nature of price is highlighted, noting that all candles print the same way, with the only difference being the speed of printing.
Understanding Candle Movements and Avoiding Gambling Addiction [8:40]
The video explains that within a candle, price action typically involves an open, a move in one direction to hit a key level, and then a reversal. The primary focus should be on the opening and closing times, with the in-between price action being secondary. The speaker addresses the issue of button-pressing addiction, likening it to gambling addiction, and points out that many traders are essentially gamblers with no results to show for their efforts.
The Benefits of Fewer, Well-Analyzed Trades [10:05]
The speaker advises against excessive lower time frame trading and encourages traders to sit down and genuinely analyze each trade. The speaker asserts that the best way to make money long term is through fewer trades. While analyzing lower time frames can be beneficial for gaining experience due to the fractal nature of price, it is important not to trade on these lower time frames.
Summary of Key Concepts and Homework [14:00]
The video concludes by summarizing the key concepts: traders should focus on trading candles and determine which candle they are trading (weekly, daily, or 4-hour) before looking for patterns. The strongest pattern involves the open, a turtle soup or CRT, and then a dump (in a bearish scenario) or pump (in a bullish scenario). The speaker omits a trade breakdown of Ethereum to avoid information overload and assigns it as homework for the viewers.