CRT trading strategy: Candle Range Theory rules and invalidation

What CRT means, and why the version matters

The linked TradingView publications by diargago and Giancarlo_Adorno both use CRT for Candle Range Theory. Their descriptions differ: diargago describes a sweep followed by a close back inside the reference range; Giancarlo_Adorno compares the new close with the previous close and also requires a particular previous candle direction. They are author-defined implementations, not a single official TradingView strategy. This guide uses the range-reclaim interpretation and does not require a bullish or bearish reference body. A sweep here means a price excursion beyond a known high or low. It does not prove that stop orders were present, identify the participants, or establish institutional intent. The rules below are an illustrative research specification, not a transcription of either published indicator.

A complete one-hour CRT rule set

Use standard one-hour candles on one fixed symbol, exchange feed, and session setting. Call the last completed candle A and the immediately following candle B. At B close, evaluate A as the reference. Record the chart session and bar timestamps because different feeds or sessions can produce different candles. The one-hour period, one-tick stop buffer, and six-bar time exit are declared test settings, not optimal values.

• Equal highs or lows do not count as a sweep. A close exactly on either range boundary fails the strict reclaim rule.
• Reject B if it touches or exceeds the opposite edge. This excludes candles that traverse both sides and avoids assigning a direction from OHLC alone.
• If B fails, do not keep A active indefinitely. The next evaluation uses the next adjacent pair; it is a new reference and a new setup.
• For an initial signal study, use one fixed tradable unit with no leverage assumption. Risk-based sizing needs a separate cash budget, point value, quantity rounding, and gap allowance.

A hypothetical bullish setup and its invalid cases

Assume a tick size of 0.10. These invented one-hour candles illustrate the rule checks; they are not historical prices, a backtest, or a recommended trade. A defines H = 110.00 and L = 100.00. B sweeps below 100.00, stays below 110.00, and closes inside at 102.00. The long signal is available only after B closes.

• If B instead closes at 99.00, there is no reclaim and no signal.
• If B high instead reaches 111.00, both range edges have been crossed and this version rejects the candle.
• If B closes at 109.80, the setup can still qualify, but little room remains to the 110.00 target. A valid pattern need not offer an attractive reward-to-risk ratio.
• The 105.00 midpoint is a reference level only. This version does not take partial profit there or move the stop to breakeven.
• No later candles are supplied, so the example establishes neither a target hit nor a stop-out.

Invalidation, confirmation, and execution are different events

Before B closes, an apparent reclaim is provisional because its high, low, and close can change. The closed-bar rule accepts that delay. If a higher-timeframe reference is added later, its candle must also be completed; a confirmed chart candle does not make an unfinished higher-timeframe range final. TradingView documents these historical-versus-live differences in its repainting guide. After entry, this version exits at the fixed stop, target, or time limit. It does not add an extra exit merely because a later candle closes outside A. Such a rule would be a separate version. A renewed move through the sweep extreme can invalidate the reversal idea even when the original signal was correctly detected.

• TradingView normally fills a market order on the next available tick, typically the following bar open under default settings. B close is not the assumed fill.
• A gap can put the entry beyond the planned stop or target. Keep and inspect those trades in the test; do not retrospectively remove them using information unavailable when the order was sent.
• Historical OHLC cannot establish every intrabar event order. When stop and target are both touched, examine emulator assumptions and available lower-timeframe detail.
• Record commission, slippage, spread treatment, and exit timing. A stop order does not guarantee the stop price.

Compare reference windows without changing the definition silently

Start by checking the one-hour version against individual candles. Then repeat the same rules on separately declared reference periods, such as 30 minutes and four hours. A change of candle duration changes the range, available signals, and the wall-clock length of a six-bar hold. State whether the experiment keeps the bar count or elapsed holding time constant. Neither choice proves one timeframe is best.

• Keep the symbol, session, date range, costs, and quantity method comparable. Save the exact timeframe and rules with every result.
• Count rejected double-sided candles, confirmed signals, filled orders, and net outcomes separately. A signal count alone says nothing about profitability.
• Reserve an untouched later period. Inspect continuation after a sweep, narrow ranges dominated by costs, and large gaps instead of selecting only clean reversals.
• Compare a small declared set of stop buffers or holding limits. Report net average trade, drawdown, and trade count, including the unchanged later-period test.

Turn this CRT specification into Pine Script with Pineify

Pine Script AI Coding Agent can draft the reference, sweep, reclaim, and exit logic from the table. Ask for visible reference levels and separate markers for confirmation and order fills so the output can be checked against the example. Strategy Optimizer uses the Pineify browser extension to compare supported strategy inputs in TradingView. Expose numeric stop-buffer and holding-period inputs; repeat tests for each chosen chart timeframe, or explicitly implement and review a reference-window input before optimizing it. Generated code still needs review, and parameter search cannot establish future profitability.