How to Trade the ICT CRT Model: Bullish and Bearish Setups Explained
- CRT entries are taken at a Fair Value Gap or Order Block created by the CHoCH displacement — not at the CHoCH candle itself; waiting for the retracement is what gives the tight stop
- Stop loss sits beyond the Seek & Destroy sweep extreme — below the SSL sweep wick for a bullish setup, above the BSL sweep wick for a bearish setup — not merely at the RC Low or RC High
- Initial target is the opposite RC extreme (RC High for bullish, RC Low for bearish); secondary target is the next higher-timeframe liquidity draw beyond the RC range
- The Reference Candle timeframe should be one to two steps above the entry timeframe — 1H Reference Candle with 5M entry is the most widely used ICT Trader pairing
- CRT setups during the London open (2–5 AM EST) and New York open (7–10 AM EST) kill zones produce the most reliable Delivery phases — avoid NY lunch and Asian session
CRT Entry Rules — The Exact Checklist
1. Confirm daily bias. CRT does not operate in isolation. Before marking any Reference Candle, determine your daily bias — the directional context that tells you which CRT direction you will trade when the sequence unfolds. See our ICT Trading framework for the full bias-first methodology.
2. Identify the Reference Candle and mark RC High / RC Low. Select the relevant higher-timeframe candle — typically the prior session candle or the prior hourly candle depending on your entry timeframe. Draw horizontal lines at its high and low.
3. Observe price approaching a RC extreme. Watch for price to move toward either the RC High (buy-side liquidity above) or the RC Low (sell-side liquidity below), consistent with your daily bias context.
4. Wait for the Seek & Destroy sweep — do NOT enter here. Price must push through the RC extreme — a wick or close beyond the RC High or RC Low — triggering the resting stops. This sweep is not the entry signal; it is the fuel for the reversal. Many traders lose on CRT trades because they enter here.
5. Wait for CHoCH or CISD confirming the sweep is complete. After the sweep, look for a Change of Character (CHoCH) or a Change in State of Delivery (CISD) that confirms price has rejected the extreme and the Delivery phase is beginning.
6. Identify the FVG or OB created by the CHoCH displacement. The aggressive candle(s) that form the CHoCH will typically create a Fair Value Gap or an Order Block. This zone becomes the entry vehicle.
7. Enter at the FVG / OB on the retracement. Wait for price to retrace back into the FVG or OB. This gives a tighter stop and better risk-to-reward than entering at the CHoCH close.
8. Place stop beyond the sweep extreme; target the opposite RC extreme. Stop goes beyond the actual sweep wick — not just at the RC High/Low. Initial target is the opposite RC extreme. Secondary target is the next draw on liquidity beyond the RC range.
The Bullish CRT Setup — Full Walkthrough
Figure 1 — Bullish CRT setup: the Reference Candle forms defining RC High and RC Low. Price sweeps below the RC Low (Seek & Destroy — SSL cleared). A CHoCH forms back above the RC Low confirming the sweep. A bullish Fair Value Gap forms in the CHoCH displacement. Entry is taken at the FVG retracement. Stop sits below the SSL sweep extreme. Target 1: RC High. Target 2: next BSL above.
The Bearish CRT Setup — Full Walkthrough
Figure 2 — Bearish CRT setup: price sweeps above the RC High (Seek & Destroy — BSL cleared). A CHoCH forms back below the RC High. A bearish Fair Value Gap forms in the displacement. Entry at the FVG retracement. Stop above the BSL sweep extreme. Target 1: RC Low. Target 2: next SSL below.
| Element | Bullish CRT Setup | Bearish CRT Setup |
|---|---|---|
| Liquidity swept | SSL below RC Low | BSL above RC High |
| CHoCH direction | Bullish — closes back above RC Low | Bearish — closes back below RC High |
| Entry zone | Bullish FVG from CHoCH displacement | Bearish FVG from CHoCH displacement |
| Stop placement | Below SSL sweep wick | Above BSL sweep wick |
| Target 1 | RC High | RC Low |
| Target 2 | Next BSL above RC range | Next SSL below RC range |
CRT Timeframe Stack — Which Timeframes to Use
Figure 3 — CRT timeframe stack: the 1H Reference Candle defines the dealing range at the top level. The 5M entry timeframe zooms in on the same time window, revealing the Seek & Destroy, CHoCH, FVG, and entry with the precision that only a lower timeframe provides. The two panels cover the same clock time — the RC simply frames what the 5M resolves at entry level.
| Reference Candle TF | Entry Timeframe | Typical Use Case |
|---|---|---|
| Daily | 1H or 15M | Swing traders holding 1–3 days |
| 4H | 15M | Intraday traders, wider targets |
| 1H | 5M | Most common ICT Trader pairing for session-level CRT |
| 15M | 1M | Scalpers and high-frequency entries |
Session Timing — When CRT Setups Are Most Reliable
CRT Stop Loss and Target — The Full Risk Framework
Frequently Asked Questions
Watch: How to Trade the ICT CRT Model: Bullish and Bearish Setups Explained
How do you enter a CRT trade?+
A CRT entry is taken at a Fair Value Gap or Order Block created by the CHoCH displacement — not at the CHoCH candle itself. After the Seek & Destroy sweep and the CHoCH confirmation, wait for price to retrace into the FVG or OB formed by the CHoCH's displacement candles. That retracement is the entry. Entering at the CHoCH itself is less precise and gives a wider stop relative to the target.
Where does the stop loss go on a CRT setup?+
The stop goes beyond the actual Seek & Destroy sweep wick — below the lowest wick of the SSL sweep for a bullish setup, above the highest wick of the BSL sweep for a bearish setup. Do not place the stop at the RC Low or RC High — it will be swept during the Seek & Destroy phase itself. The sweep wick is the precise invalidation level: if price returns through that wick, the CRT setup is invalidated.
What is the target for a CRT trade?+
The initial target (Target 1) for a CRT trade is the opposite extreme of the Reference Candle range — the RC High for a bullish setup, the RC Low for a bearish setup. If daily bias supports continuation and there is a clear draw on liquidity beyond the RC range (buy-side or sell-side liquidity pool), the secondary target (Target 2) extends there. A well-structured CRT trade typically yields 1:2 to 1:4 risk-to-reward.
Which timeframes work best for CRT?+
The Reference Candle should be one to two timeframe steps above the entry timeframe. The most common ICT Trader pairing is a 1H Reference Candle with a 5M entry timeframe — the 1H RC defines a range large enough for meaningful targets while the 5M allows entry precision tight enough to keep the stop small. Other common pairings: Daily RC with 1H or 15M entry; 4H RC with 15M entry; 15M RC with 1M entry.
When are CRT setups most reliable during the trading day?+
CRT setups produce the most consistent Delivery phases during the London open (2:00–5:00 AM EST) and New York open (7:00–10:00 AM EST) kill zones — when institutional participation is highest and the Delivery phase tends to be fast and complete. Avoid CRT entries during the New York lunch (12:00–2:00 PM EST) and Asian session, where low participation results in sluggish or incomplete deliveries that stall before reaching Target 1.