CRT course part 4 CRT Entries 1080p
Understanding Turtle Soup and Market Structure
The Concept of Turtle Soup
- When bullish, a "turtle soup" occurs where the price rallies after hitting a key level, then dumps back down near the swing low before rallying again. This pattern is mirrored in bearish conditions.
- Each turtle soup will have a specific failure swing high that can scare traders out of the market. The timing of these swings is crucial and not random.
Analyzing Examples
- In examples provided, price movements demonstrate how hitting key levels leads to failure swings, which are essential for understanding market behavior.
- Entry strategies include using the second candle as an entry point during turtle soup formations, with subsequent entries based on order blocks and market structure shifts.
Entry Strategies
- Focus on trading order blocks when they are characterized by thick and heavy candles that indicate liquidity purging; this often misleads traders into taking incorrect positions.
- Avoid entering small or weak order blocks; prioritize those that show significant movement to validate potential trades.
Key Timing and Candle Analysis
Understanding Candle Dynamics
- Recognize critical times throughout the day when highs and lows are likely to form; this knowledge enhances trading strategy effectiveness.
- Each candle's formation is timed, with consolidation occurring at specific intervals leading to expansion phases in the market.
The Power of Three Candles
- The first candle represents accumulation, the second manipulation, and the third signifies fast movement—traders should aim for as many third candles as possible while avoiding forced trades.
- Clear visibility in turtle soups is essential; only take trades that present themselves unambiguously without forcing entries.
Practical Application of Models
Range High and Low Analysis
- A range high/low analysis shows how turtle soups can guide traders toward opposing ends of ranges effectively across all time frames.
- Using a structured approach (Monday range for accumulation, Tuesday for manipulation, Wednesday for distribution), traders can identify profitable trade opportunities.
Execution Strategy
- For executing trades based on candle patterns: wait for confirmation from the third candle opening after identifying a turtle soup at key levels.
- Emphasizing quick trades within candle three allows traders to capitalize on bearish trends following successful manipulations indicated by previous candles.
Understanding Turtle Soup and CRT Strategies
Key Concepts of Turtle Soup and CRT
- The third candle opens above its own open, moving towards the midpoint of Tuesday's range, indicating a potential reversal point known as "turtle soup." This setup is classified as an A+ model.
- Emphasis on the importance of studying turtle soup formations at the equilibrium of the second candle in relation to the third candle's open. The first entry can be based on this formation, while subsequent entries may involve order blocks.
- An example illustrates a three-candle range with specific behaviors: a wick above indicates bearish sentiment, and distribution occurs on lower time frames. The strategy involves identifying order blocks formed after closing below certain levels.
Confirmations for High Probability CRT
- Specific confirmations are essential for identifying high-probability Critical Reversal Tactics (CRT). These include ensuring that the CRT forms within a designated time frame.
- The presence of high time frame key levels near or within the CRT enhances probability. Additionally, combining CRT with inside bars creates a more favorable setup.
- Lower time frame CRT setups nested within higher time frame contexts also contribute to increased reliability in trading strategies.