Simplifying The Turtle Soup - ICT Concepts

Summary

This video delves deep into advanced trading strategies, specifically focusing on the 'Turtle Soup' and 'CRT' concepts. The speaker breaks down how to identify key entry points using market structure, external liquidity, and higher time frame fair value gaps. Emphasis is placed on critical elements such as timing, key level identification, and how to enter trades with high probability. The speaker urges viewers to study market profiles, utilize proper risk management, and develop their own models, encouraging a dedicated mindset for those looking to become successful traders. This content is not for beginners, but rather for traders ready to elevate their understanding.

Takeaways

• 😀 Understand the concept of 'Turtle Soup' trading strategy and how it works for both bullish and bearish market conditions.
• 😀 A Turtle Soup entry involves external range liquidity, not internal liquidity, focusing on significant price extremes.
• 😀 A key entry rule is that a Turtle Soup entry is valid only if there's a wick below or above the low/high, not a close.
• 😀 To enter the Turtle Soup strategy, always measure a 3:1 reward-to-risk ratio from your entry, and ensure it respects key levels and market structure.
• 😀 The higher time frame fair value gap combined with a lower time frame Turtle Soup setup creates a powerful entry point.
• 😀 A fair value gap on a higher time frame is validated by breaking the low of a candle block and confirming liquidity below it.
• 😀 A higher time frame (like daily) fair value gap is crucial in determining where to enter the market on a lower time frame.
• 😀 When using the CRT (Change of State) model, it's essential to combine it with market structure to shape your entry, not as a standalone pattern.
• 😀 Key levels such as the Asia session high and low are critical for planning entries, especially for sessions like London and New York.
• 😀 The strategy emphasizes critical times for trade entries—e.g., looking for key levels between 8:00 PM and midnight (New York time) for the Asia range.

Q & A

What is the main purpose of this video?

The main purpose of the video is to explain advanced trading concepts, particularly focusing on the 'turtle soup' strategy, and how to use it effectively in the markets. The speaker emphasizes that this is not a beginner-friendly video and challenges conventional trading ideas.

What is the 'turtle soup' strategy?

The 'turtle soup' strategy is a market entry technique that involves taking a position when the price briefly breaks out of a range and then reverses back into the range. The strategy is based on taking liquidity from external range points, either above or below key price levels.

What does 'external range liquidity' refer to?

External range liquidity refers to price levels outside the established range, such as highs and lows. It represents points where liquidity can be trapped before price reverses and continues in the opposite direction, which is the core idea behind the turtle soup strategy.

How does the speaker define a valid 'turtle soup' entry?

A valid turtle soup entry occurs when the price wicks below a range low (or above a range high) but closes back within the range. The key is that there must be a wick, and a single candle close is required for confirmation, not two consecutive closes in the opposite direction.

What is a 'fair value gap' and how does it relate to the turtle soup strategy?

A 'fair value gap' is a price inefficiency, often occurring between key order blocks or imbalances. The speaker stresses the difference between a typical CBI (consolidation before imbalance) and a true fair value gap, where price often retraces into these zones, allowing traders to apply the turtle soup strategy for entries.

What is the importance of 'market structure' in trading?

Market structure is crucial because it defines the bias (direction), the flow (how price is moving), and the overall narrative (why price is moving). Understanding market structure helps traders recognize key levels, zones of liquidity, and patterns like the turtle soup entry for higher probability trades.

How can traders identify high probability entry times?

Traders should identify key times based on specific market sessions, like the Asia session or the London and New York sessions. The video emphasizes using session highs and lows, as well as times like 9:00 AM, to align with higher probability entries.

What is the significance of the Asia range in this strategy?

The Asia range is used to mark key levels for potential entry during the London or New York session. The Asia session provides an initial low and high that traders use to determine where price might reverse or continue. Sweeping these highs or lows is often a key trigger for the turtle soup strategy.

Why is the 'change in state of delivery' important in this strategy?

The change in state of delivery marks a shift in market conditions, signaling that the price has reached a key level or broken a structure. This shift is vital for confirming entries in strategies like turtle soup, as it helps traders identify when liquidity has been captured and a new direction may begin.

What role do lower time frames play in executing the turtle soup strategy?

Lower time frames, such as the 1-minute or 5-minute charts, are essential for fine-tuning entries within a higher time frame context. By watching price action at these levels, traders can pinpoint the exact moment to enter a turtle soup trade, ensuring that the setup aligns with broader market structure.