Understanding the ICT Turtle Soup: Key Concepts and Setup
The ICT Turtle Soup is a trading pattern developed within the Inner Circle Trader (ICT) methodology. Built on principles of market psychology and liquidity hunting, this pattern is designed to exploit false breakouts around major support and resistance levels. It offers a way to anticipate reversals. In this article, we’ll break down what the Turtle Soup setup is, how it works, and the potential ways to integrate it into trading strategies.
The ICT Turtle Soup Pattern Explained
ICT Turtle Soup is a trading pattern developed by the Inner Circle Trader (ICT) that focuses on exploiting false breakouts in the market. This ICT price action strategy aims to identify and take advantage of situations where the price briefly moves beyond a major support or resistance level, only to reverse direction shortly after. This movement is often seen in ranging markets where prices oscillate between established highs and lows.
The concept behind ICT Turtle Soup trading is rooted in the idea of liquidity hunts and market imbalances. When the price breaks out, it often triggers stop-loss orders set by other traders, creating a temporary imbalance. The ICT Turtle Soup strategy seeks to capitalise on this by entering trades in the opposite direction once the breakout fails and the price returns to its previous range.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The ICT Turtle Soup is a trading pattern developed within the Inner Circle Trader (ICT) methodology. Built on principles of market psychology and liquidity hunting, this pattern is designed to exploit false breakouts around major support and resistance levels. It offers a way to anticipate reversals. In this article, we’ll break down what the Turtle Soup setup is, how it works, and the potential ways to integrate it into trading strategies.
The ICT Turtle Soup Pattern Explained
ICT Turtle Soup is a trading pattern developed by the Inner Circle Trader (ICT) that focuses on exploiting false breakouts in the market. This ICT price action strategy aims to identify and take advantage of situations where the price briefly moves beyond a major support or resistance level, only to reverse direction shortly after. This movement is often seen in ranging markets where prices oscillate between established highs and lows.
The concept behind ICT Turtle Soup trading is rooted in the idea of liquidity hunts and market imbalances. When the price breaks out, it often triggers stop-loss orders set by other traders, creating a temporary imbalance. The ICT Turtle Soup strategy seeks to capitalise on this by entering trades in the opposite direction once the breakout fails and the price returns to its previous range.
TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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