The Candle Range Theory - Sham CPI

What is the concept of Market Profile?

Market Profile is a detailed analysis of market dynamics that provides a mechanical and objective perspective of market behavior.

What are the two versions of Market Profile?

The two versions are the simpler version, which considers range and expansion profiles, and the advanced version that includes multiple profiles like retracement, reversal, and manipulation.

What is a Key Level?

Key Levels are important price points or zones on the charts where significant expansions and reversals occur.

What does CRT stand for?

Candle Range Theory.

What is the purpose of the Execution Consistency Ratio (ECR)?

ECR measures how consistently a trader follows their trading plan and model compared to their actual trades.

What is the significance of a turtle soup in trading?

A turtle soup is a liquidity purge designed to trigger stop-loss orders before reversing the price direction.

What are the three key aspects of a Candle Range Theory (CRT)?

1. Accurate liquidity draw and directional bias, 2. Building a narrative, 3. Framing lower timeframe entries.

What role does time play in the analysis of trading methods?

Time is essential for identifying high-probability trades and integrating them with price movements and market profiles.

What distinguishes Intraday Trading from Swing Trading?

Intraday Trading involves opening and closing trades within the same day, while Swing Trading captures price movements over days to weeks.

What does Seasonal Tendencies refer to in trading context?

Seasonal Tendencies represent patterns derived from historical price movements during specific times of the year to predict future price behaviors.

What is the primary goal of Risk Management in trading?

To protect capital and ensure long-term sustainability by managing risks effectively to avoid significant losses.

Define Standard Deviation in trading.

Standard Deviation is a measure of market volatility that identifies the extent to which price moves away from its mean, indicating potential reversal or expansion points.

What is the significance of the Weekly Performance Reviews (WPR)?

WPRs assess the trader's model and personal performance, helping identify strengths and weaknesses to improve trading accountability.

What does OHLC stand for?

Open, High, Low, Close - a concept used to evaluate the price movements of a single candle.

What are manipulating and expansion profiles in Market Profiles?

Manipulating profiles are temporary price offerings that take out liquidity, while expansion profiles are sustained movements based on market orders.

Explain the difference between bullish order flow and bearish order flow.

Bullish order flow occurs when price rejects below lows and breaks above highs, while bearish order flow is when price rejects above highs and breaks below lows.

How does the concept of draw on liquidity influence trading?

Draw on liquidity indicates the likely direction of price movement and potential target areas, enhancing trading decisions.