CRT secrets episode 2: The kiss of death

Summary

In this episode of CRT Secrets, the speaker dives deep into one of the most powerful and underrated models in trading: the Kiss of Death Turtle Soup. The strategy involves understanding liquidity manipulation by market makers, where price is pushed through engineered liquidity pools to create false breakouts and trigger stop-losses, leading to a sharp reversal. The video breaks down the technicalities of identifying key candles, the structure of the market, and the logic behind this rapid price movement. The speaker emphasizes the importance of learning from mistakes, backtesting strategies, and mastering the art of trading through experience.

Takeaways

• 😀 The series will have one episode per month until the end of 2025, with a book release planned for 2026.
• 😀 The 'Kiss of Death Turtle Soup' model is one of the most important, underrated, and fast models in trading.
• 😀 Market makers are aware of common models and will often fade them, making it important to avoid following the crowd.
• 😀 CRT (Candle Range Trading) focuses on understanding price ranges rather than patterns, with the range of a candle being key.
• 😀 The 'Kiss of Death Turtle Soup' involves price pushing above engineered liquidity pools, stopping out previous shorts, and enticing longs.
• 😀 Turtle Soup is the 'fuel' that allows large price moves, with market makers needing this liquidity to execute their strategies.
• 😀 The logic behind the 'Kiss of Death Turtle Soup' is to trap uninformed retail traders, who are often unsure of price direction.
• 😀 Experienced traders must get comfortable with actions like selling against strong bullish candles or buying after a large bearish move.
• 😀 The 'Kiss of Death Turtle Soup' often results in a fast, vicious move toward a target after a brief bounce at the 50% mark.
• 😀 CRT offers a major advantage to traders by providing insight into upcoming moves, making it a powerful strategy to follow.
• 😀 The best way to test CRT is by observing real-time instances where the strategy fails, rather than only focusing on successful trades.

Q & A

What is the main focus of episode two in the CRT Secrets series?

Episode two focuses on the 'Kiss of Death Turtle Soup,' a powerful and often overlooked trading model, with an emphasis on understanding how market makers manipulate liquidity to generate profitable trades.

How does the market maker's strategy influence retail traders?

Market makers often manipulate liquidity pools by pushing prices above or below certain levels, enticing uninformed retail traders to make decisions based on false breakouts, which they then exploit for profit.

What role do liquidity pools play in the 'Kiss of Death Turtle Soup'?

Liquidity pools are critical because they represent areas of buy and sell orders that market makers use to induce price movements. By pushing prices beyond these pools, they can stop out previous traders and set up false breakouts to drive the market in the desired direction.

What is the concept of 'Turtle Soup' in the context of trading?

'Turtle Soup' is a trading strategy where the market pushes past a specific price level to trigger stops, then reverses quickly, leading to a profitable price move once liquidity is gathered and a new trend begins.

What is the key feature of a 'Kiss of Death Turtle Soup'?

The 'Kiss of Death Turtle Soup' refers to a sharp, fast move towards a target after liquidity has been collected, where price first rises to trigger stop losses, then rapidly falls to a predetermined level.

Why does the 'Kiss of Death Turtle Soup' typically result in a strong price movement?

It results in a strong move because it manipulates uninformed traders into positions where they expect further price action in one direction, only for the market to reverse sharply once liquidity has been accumulated.

How does the 'Kiss of Death Turtle Soup' differ from a typical breakout pattern?

Unlike a typical breakout pattern, the 'Kiss of Death Turtle Soup' involves a false breakout that traps breakout traders, before the price reverses sharply and heads toward a target based on prior liquidity manipulation.

What is the significance of the 50% level in the 'Kiss of Death Turtle Soup'?

The 50% level acts as a key reference point, often acting as a bounce level before the market makes its final move toward the lower target, reflecting the market's reaction to previous liquidity levels.

How should traders approach the 'Kiss of Death Turtle Soup' when uncertain about price direction?

Traders should remain aware of the impending 'Kiss of Death Turtle Soup' and avoid trading against it, instead focusing on the liquidity manipulation and looking for confluence with other factors like FVG (Fair Value Gaps) before making a trade.

What is the relationship between the 'Kiss of Death Turtle Soup' and the concept of 'FVG'?

The 'FVG' (Fair Value Gap) acts as a confluence for a potential trade, where a bearish FVG above a previous high or a bullish FVG below a previous low can signal a good entry for a 'Kiss of Death Turtle Soup' setup, enhancing the reliability of the trade.