Turtle Soup

A turtle soup or a false break below an old low or break above an old high. To put it
simple, turtle soup is liquidity sweep followed by reversal.

Similar to a double top/bottom but price goes beyond the prior level to take out the
stops before reversing fooling the unwary into entering thinking continuation.

You need to know of it because it is famous for suckering in retail traders to trade the
wrong way thinking price has broken the prior high/low they enter and are then
trapped. This is a bull/bear trap or a stop run.

What liquidity level should we consider? It can be PMH/PML, PWH/PWL, PDH/PDL,

Asia KZ BSL/SSL, London KZ BSL/SSL, AM Session BSL/SSL, NY Lunch BSL/SSL, PM
Session BSL/SSL, Equal Highs/Lows and so on.

So, what do we look for the turtle soup strategy? First of all, we look for old highs or low
to be taken. Also, we look for SMT Divergence confirmation. And the last thing we're
going to look for is FVG or HTF POI.

So. Let’s take example of SMT Divergence confirmation:

Here's SMT Divergence, we compared NQ and ES charts. We see that NQ has equal
highs that were taken and ES failed to take old highs (equal highs) and reversed.

Let’s take a look another example:

There is HTF point of interest. It can be any form of imbalances, Order Block, Breaker
Block, Mitigation Block and so on. Remember HTF > LTF. And as we learned in
External and Internal Range Liquidity level lesson, market moves from ERL to IRL and
from IRL to ERL. So, after we saw run on HTF POI and we took out ant form of old high
or low, we can expect to see reversal from HTF POI with entry at the break of old
high/low (EQH/EQL, PDH/PDL, Session High / Low, etc.).
Also, I want to share hint, the Turtle Soup entry typically takes place as your initial entry
on the first stage of accumulation if it is MMBM and on the first stage of distribution if it
is MMSM.

This entry generally happens between 8:30 AM and 11:00 AM, as well as between 1:00
PM and 2:30 PM EST.

Here is how I recommend using Turtle Soup. First of all, we have to identify HTF Order
Flow. I usually use 4h TF as my HTF Order Flow. And I use 15m TF as my LTF.
If we have Bullish Order Flow, I highly recommend marking every single POI near the
price action.

Let's say we're on the 4-hour time frame, and we see that the trend is bullish, the OF is
bullish.

What is an OF? It's basically when the price is continuously respecting the bullish FVG
or a bullish order block.

Let's imagine that the for the example above the OF is bullish. Now, what you have to do
is you have to mark out every single POI. So, it can be FVG, OB, BB, MB, etc.

So, now, let’s take a look on Turtle Soup from different side:
Let’s call Turtle Soup as ABCD pattern. And if we have Bullish OF, we don’t expect that
price will go lower, right? So, my quick tip, CD leg will form near HTF Level below BC
leg. This about it like we have External Range Liquidity and Internal Range Liquidity.
Price always move from External to Internal and from Internal to External.

After it took out External Range BSL, it will drop to the Internal Range Liquidity in the
form of FVG/OB/VI.

From MMXM lesson we learned that reaction HTF PDA is MMXM on LTF.
In the example above, we see that we have ABC and 4h OB below BC leg. So, we expect
price wants to test that HTF PDA and bounced back to the External Range BSL.

Now, let’s switch to LTF (15m) to look what is going to happen after 4h OB was tested.

So, on 15m we want to see run on sell stops (B) and formation of 15m structure then.
Here we see that HTF SSL was taken (we are below BC leg), we have run on sell stops on
15m TF and we are inside 4h OB. What we are going to expect next? Right, MMBM.

Our initial entry can be in the form of SMR (15-minute OB or the point where 15-minute
sell stops were triggered). The second entry can be the 15-minute Turtle Soup setup. As I
mentioned earlier, our goal is to observe a surge in sell stops during the first stage of
accumulation and target liquidity beyond the C point.
Once again, our target will be C leg. We have bullish OF; test of internal range liquidity
and our next target is extern range BSL – C leg.

Our Check List:

1. EQH/EQL, Old High/Low.

2. HTF Level
3. Liquidity grab above or below.
4. External Range Liquidity – Internal Range Liquidity.
5. Energetic move coming back inside the range (of equal high/lows).
6. Use lower timeframe + your model for entry.
7. Occurs from 03:30am to 07:00am, from 8:30am to 11:00am and from 1:00pm to
2:30pm EST. (Time is based on my backtests).