What is turtle soup?

Introduction to Turtle Soup

Overview of the Series

• The series consists of six videos focused on turtle soup, addressing the lack of publicly available research on the topic.

• The creator aims to be the definitive source for learning about turtle soup and its related concepts.

Learning Objectives

• Key topics include understanding what turtle soup is, how to trade it, and when it typically occurs in trading contexts.

• Introduction of a personal model called the "million dollar FVG model," which will be discussed in later episodes.

Unlearning Previous Knowledge

Importance of a Clean Slate

• Emphasis on unlearning previous misconceptions from retail trading that can cloud judgment.

• Commonly misused tools like RSI, MACD, Elliott Wave Theory, and others are identified as sources of confusion.

Focused Learning Approach

• Learners are encouraged to avoid multiple information sources; choosing one mentor is crucial for effective learning.

• Specialization in turtle soup is recommended over being a generalist in various trading strategies.

Preparing for Learning

Study Recommendations

• Viewers should approach the series with focus and readiness to take notes rather than passively watching.

• The importance of repetition in mastering concepts is highlighted; practice leads to proficiency across various fields including trading.

Understanding Turtle Soup

Definition and Mechanism

• Turtle soup refers to false breakouts or breakdowns where prices move above old highs or below old lows intentionally by market makers.

• These movements serve the purpose of filling large orders necessary for price movement within controlled markets.

Market Dynamics

• Acknowledgment that many traditional trading methods offer limited accuracy (50%-60%) compared to turtle soup's potential effectiveness.

• False moves into old highs/lows are common due to algorithms controlling market behavior; 90% of traders often fall victim to these traps.

Conclusion: Commitment Required

Call to Action

• Viewers are urged to investigate further if they have doubts about adopting this strategy; commitment is essential for success.

Understanding Turtle Soup Trading Strategy

The Nature of Scammers in Trading

• The speaker dismisses random scammers on social media, emphasizing the abundance of misleading mentors and encouraging listeners to focus on genuine strategies instead.

Introduction to Turtle Soup

• The concept of "Turtle Soup" is introduced, highlighting that trading often revolves around false breakouts and breakdowns.

Mechanics of Bearish Turtle Soup

• A bearish turtle soup scenario is explained where old highs attract buy stops from short sellers, leading to a potential trap.

• When price breaks above an old high, it triggers stop losses for shorts and entices new long positions, creating liquidity before a price drop occurs.

Live Chart Example

• The speaker references a live chart example called out on Twitter, illustrating how traders react to old highs and their stop-loss placements.

• Traders mistakenly view previous resistance as strong support, leading them into traps when prices spike above these levels.

Dynamics of Price Movement

• Price movements are characterized by stabs into old highs or lows that knock out existing positions before reversing direction.

• This behavior creates a pattern where breakout buyers get trapped in wicks due to misinterpretation of resistance levels.

Bullish Turtle Soup Explained

• In bullish scenarios, sell stops below old lows entice new shorts while trapping those who previously profited from upward moves.

• Market makers push prices below established lows to trigger stop losses and generate new buying interest.

Importance of Experience in Trading

• Successful trading requires extensive experience; understanding the nuances of turtle soup patterns comes with time spent observing market behavior.

Steps for Effective Trading

• The speaker outlines three steps: learn the concept (step one), observe it repeatedly (step two), and then trade effectively (step three).

Avoiding Common Pitfalls

Understanding Market Profiles and Risk Management

Key Concepts in Trading Strategies

• Emphasis on understanding market profiles, which will be elaborated in the next episode.

• Discussion of different entry models related to "Turtle Soup," with further details promised in upcoming videos.

• Importance of monitoring higher time frame price action as a critical aspect of trading strategy.

• Highlighting risk management as essential; even a 90% win rate strategy can fail without proper risk control.