What is CRT?

CRT is considered an advanced and comprehensive method of technical analysis. It focuses on price action at critical points like swing highs, swing lows, and key levels. It helps traders identify when the price is about to reverse or shift direction.

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Core Logic of CRT:

CRT is built on three main principles:

1. Present at Every Swing High and Swing Low

➔ CRT signals appear exactly where the market creates tops (swing highs) and bottoms (swing lows). These are natural turning points in price.

➔ Example: When Bitcoin forms a peak and starts to fall — a CRT pattern might be signaling that a reversal is starting.

2. Found at Key Levels

➔ CRT signals are usually found at important price levels like:

Support and Resistance zones

Supply and Demand areas

Fibonacci retracement levels ➔ These are areas where big traders (institutions) make decisions, causing strong reactions in price.

3. A Signature within Price Action

➔ CRT patterns are special "signatures" or signs within the price movement that indicate a change:

Break of Structure (BoS): Price breaks the last major swing structure.

Change of Character (ChoCh): Price shifts behavior, like stopping higher highs and starting lower lows.

Liquidity Sweep: Price grabs liquidity (hits stop-losses) before reversing direction.

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Why is CRT Powerful?

CRT combines:

Market Structure Analysis (higher highs, lower lows)

Key Level Reactions (support/resistance)

Price Action Signals (BoS, ChoCh, liquidity grabs)

This combination creates high-probability trade setups because it aligns technical factors that big players also watch.

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CRT in Simple Steps:

1. Identify Swing Highs and Lows

Look for where price has previously turned around — these are your swing points.

2. Mark Key Levels

Use support, resistance, supply-demand zones, or Fibonacci levels to mark where price might react.

3. Watch for Price Action Signatures

Did price break the previous structure? (Break of Structure)

Is there a visible change in trend behavior? (Change of Character)

Did price sweep liquidity (fake breakout) before reversing?

4. Enter Trade

When all three conditions align, CRT signals a potential trade opportunity with a higher chance of success.

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Real Example:

Let’s say Bitcoin rises to $70,000 (swing high), then falls slightly, and tries to go up again but fails to make a new high.

At the same time:

Volume is weak

A Change of Character pattern appears

Price sweeps liquidity above the previous high, then falls sharply

This is a classic CRT signal — suggesting that buyers are exhausted and a downward reversal is likely starting.

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CRT Is Used In:

Smart Money Concepts (SMC)

Wyckoff Theory

Order Block Trading

Liquidity Grab Zones

It’s an evolution of classic technical analysis, focusing on price structure and market psychology rather than simple indicators.

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Final CRT Formula (Simple Rule)

"Market Structure Shi

ft + Key Level Reaction + Price Action Signature = High Probability Reversal or Continuation"

This is the essence of CRT.