Imported from arraydude/agent-skills (skills/smc-crt-analysis/AGENTS.md). Install upstream with npx skills add arraydude/agent-skills --skill smc-crt-analysis. Copyright stays with the author (MIT).

SMC + CRT Analysis Framework

Multi-timeframe institutional order flow analysis. Follow this top-down protocol for every analysis.

1. Market Structure (HTF → LTF)

Identify structure on the highest relevant timeframe first:

• Bullish: HH + HL. BOS confirms when price breaks previous HH.
• Bearish: LH + LL. BOS confirms when price breaks previous LL.
• Consolidation: EQH + EQL — range-bound.
• CDC/CHoCH: First break of opposing swing = potential reversal.

Strong vs Weak points:

• Strong Low = created by a BOS upward (protected, not expected to break)
• Weak High = not yet broken upward (liquidity target)

Three types of structural breaks (from the books):

1. Wick-to-wick mapping, wick break
2. Wick-to-wick mapping, body break (used for CHoCH)
3. Body-to-body mapping, body break (most conservative)

2. Liquidity Mapping

Map ALL liquidity before identifying POIs:

• BSL: Buy stops above swing highs, EQH, trendlines
• SSL: Sell stops below swing lows, EQL, trendlines
• IRL: FVGs/imbalances inside the range
• ERL: Swing highs/lows at range boundaries

Golden rule: Liquidity must exist BEFORE the POI. Price sweeps liquidity, then reacts at the OB.

Inducement: False BOS to trap retail. Small structure break → immediate reversal → real move opposite.

Killzones (best session times):

• London: 2:00-5:00 AM ET
• New York: 7:00-10:00 AM ET (highest volatility per Ross/CarpinchoTrader)
• Asian session range defines ARL (Asia Range Liquidity)

3. Order Blocks & POIs

Valid OB requires ALL three:

• Momentum: Candle creates acceleration/impulse
• Imbalance: FVG left by the impulse
• Location: Discount zone for buys, premium zone for sells

Sensitive zones within OB:

• Open of the block candle
• 50% level (highest institutional volume)

POI Hierarchy:

• Extremo/Original: Origin of the move — highest probability
• Decisional: Zone that caused BOS — lower probability, IS liquidity itself

Rule: No significant retracement before BOS → ignore the Decisional. Target the Extremo.

Formula: OB + Imbalance + Liquidity + Structure = Valid POI

Voids: Long wicks on HTF containing OBs and imbalances on LTF. Most important on Daily+.

4. Premium / Discount

Divide trading range (swing H to swing L) at 50%:

• Premium (>50%): Sell zone
• Discount (<50%): Buy zone
• Equilibrium (50%): No edge

5. CRT (Candle Range Theory)

Operating Range = previous candle's high/low (H4 or Daily).

CRT Cycle:

1. Reference candle defines range
2. New candle opens
3. False initial move sweeps one side (manipulation)
4. Check close:
   • Closes INSIDE (wick sweep) → Classic CRT / Turtle Soup → Expansion OPPOSITE
   • Closes OUTSIDE (body) → TBS → Possible real breakout, provides counterparty

Range Types (Will Street & ClutiFx classification):

• Intra TS: Second Turtle Soup within same range — confirms reversal
• R. Pendiente: Smaller range inside larger, same target, no retracement — best R:R, clear institutional intent
• R. Reiniciada: Price restructures within range before continuing — worst R:R, erratic moves
• R. Previa: Almost reaches target, next candle manipulates and sets new target (like Inside Bar)
• R. Completada: Price hits target fast and retraces — quick impulse then exhaustion

PDM (Punto de Máxima Decisión): Occurs when TS forms and price validates by resting on a previous candle's wick. Sequence: TS → PDM → NWM/SLF → Expansion. Key candles: PDM (validates support/resistance) + Vela Pendiente (confirms intent without retracement).

Fractal Execution Protocol:

• H4 = direction (bias)
• M15 = identify trap/manipulation
• M1 = execute entry

Double Liquidity Sweep (Ross's key rule):

• Wait for TWO sweeps, not one
• First sweep traps the impatient
• Second sweep cleans their stops
• Enter after second sweep + SMT divergence + rejection candle
• SL below second swept low
• Minimum R:R = 1:5

6. SMT Divergence

Compare correlated assets — one sweeps a level, the other doesn't → confirms manipulation.

Positive correlations (move together):

• EUR/USD ↔ GBP/USD
• AUD/USD ↔ NZD/USD
• ES ↔ NQ ↔ YM (US indices)
• Gold ↔ Silver
• BTC ↔ ETH

Negative correlations (move opposite):

• DXY vs EUR/USD, GBP/USD, AUD/USD
• DXY vs ES, NQ, YM

Pro tip: Invert DXY chart scale to see manipulations clearly — inverted DXY sweep high → EUR/USD and GBP/USD likely drop.

7. Time & Price

Power hour: 17:00 ET — all timeframes align (new daily candle).

Timeframe hierarchy:

• Macro: 1M / 2W / 3D / 2D / 1D
• Daily: 12H / 8H / 6H / 4H / 3H / 144min / 2H / 90min / 1H
• Entry: 15min / 5min

Best session times (ET):

• NY: 08:00 (90min/3H), 09:00 (2H/4H/8H), 11:00 (90min/2H/3H/6H)
• London: 03:00 (2H), 05:00 (90min/2H/3H/4H/6H/12H)
• Asia: 20:00 (90min/3H), 21:00 (2H/4H), 23:00 (90min/2H/3H/6H)

8. IPDA Cycles

Interbank Price Delivery Algorithm: 20-40-60 day windows.

• Look for unfilled FVGs and OBs from 20, 40, 60 days ago
• Price rebalances these inefficiencies within these cycles

Output Format

Structure every SMC+CRT analysis as:

1. HTF Structure — Current trend, BOS/CDC levels
2. Liquidity Map — BSL/SSL pools, EQH/EQL, inducement
3. Key POIs — OBs validated with momentum + imbalance + location
4. Premium/Discount — Position within range
5. CRT Reading — Recent candle range setups, sweep status
6. SMT Check — Correlated asset divergence
7. Bias + Levels — Direction, entry, SL, TP

Risk Management

• P = (K × R) / (Entry - StopLoss)
• Max 2 stop losses per day → stop trading
• Min R:R 1:5 sniper, 1:3 swing
• SL below second swept low (not first)
• Always calculate and accept risk BEFORE entering
• Think in percentages, not dollars