CRT secrets episode 2: The kiss of death

CRT Secrets Episode 2 Overview of Trading Models

Introduction to the Series

• The host introduces episode two of "CRT Secrets," which will continue monthly until the end of 2025, leading up to a book release in October 2026.

Importance of Underrated Models

• The discussion focuses on underrated trading models that are often overlooked but can be more effective than popular ones.

• Market makers monitor traders and their strategies, often exploiting common models by fading them.

Kiss of Death Turtle Soup Model

• The "Kiss of Death Turtle Soup" is highlighted as a crucial and fast model in trading, emphasizing its significance in the system.

• The host identifies as a candle trader rather than a zone trader, focusing on specific candles for analysis.

Candle Analysis and Trading Strategy

• A live trade example is referenced to illustrate practical application rather than hindsight analysis commonly seen with other mentors.

• The concept revolves around analyzing ranges from specific candles to understand market movements better.

Understanding Ranges and Liquidity Pools

• Emphasis is placed on understanding price action within defined ranges rather than relying solely on patterns.

• Traders are encouraged to take responsibility for their learning journey; blaming external factors hinders progress.

Mechanics Behind the Kiss of Death Turtle Soup

• The model involves identifying range highs and lows, with specific targets set for trades based on these points.

• It’s described as a final move before hitting targets, characterized by rapid price changes driven by liquidity pools created by market makers.

Role of Market Makers in Price Movement

• Market makers push prices above engineered liquidity pools to trigger stop losses and attract new long positions from breakout traders.

Turtle Soup and Market Dynamics

Understanding Turtle Soup Strategy

• The concept of "turtle soup" involves market manipulation where sellers entice new buyers, leading to a price drop after an initial rise.

• Retail traders often become confused at critical price levels (like 50% retracement), which creates liquidity for market makers to exploit.

• Uninformed traders struggle to predict price movements, making them vulnerable during market fluctuations.

Historical Context and Market Behavior

• The effectiveness of trading strategies like ICT has changed over time; they were more effective when less known compared to their current mainstream status.

• Current market dynamics see retail traders uncertain about future price directions, especially after significant bullish candles that can mislead them.

Trading Psychology and Experience

• Experienced traders learn to sell against strong upward movements, while beginners may hesitate due to fear of loss.

• Practical application of trading knowledge is essential; understanding concepts does not guarantee successful execution without practice.

Risk Management in Trading

• Traders must train themselves to be comfortable with selling during bullish trends and buying during bearish trends within established rules.

• Recognizing the potential for a "kiss of death" scenario helps in anticipating market reversals after significant price increases.

Critical Reversal Theory (CRT)

• Awareness of CRT provides traders with an advantage by identifying potential reversal points that could save or earn money.

• Skeptics are encouraged to test CRT by attempting to fade it, which can provide insights into its effectiveness as a strategy.

System Validation and Confidence in Trading

• A challenge is presented: if anyone can prove a trading system more accurate than CRT, they will receive a $1 million reward, emphasizing confidence in the current system's superiority.

• Confluences such as FVG (Fair Value Gaps) above old highs serve as indicators for potential trades, reinforcing the importance of multiple confirmations before entering positions.

Entry Models and Trade Execution

• Successful entry models require careful analysis on lower time frames; risk management should always be prioritized alongside trade execution strategies.

Understanding the Bullish Kiss of Death Turtle Soup

Key Concepts and Strategies

• The speaker encourages viewers to dissect and reverse engineer a "bullish kiss of death turtle soup" as homework, suggesting it is a valuable trading strategy worth exploring.

• Emphasizes the importance of practice in trading, stating that historical data serves as a gold mine since market patterns tend to repeat themselves.

• The speaker shares their personal entry points in trading, indicating they have access to specific systems that inform their decisions.

• Summarizes the key components of the "kiss of death turtle soup," which includes understanding CRT high and low levels, along with recognizing market dumps.