A modernization of classic false-breakout strategies. The Inner Circle Trader (ICT) Turtle Soup targets areas of resting liquidity.
Originally popularized by Linda Raschke and Larry Connors in "Street Smarts," the Turtle Soup exploited the failure of the famous "Turtle Traders" trend-following breakout system. ICT adapts this by focusing on Liquidity Pools across all timeframes.
Price drops below an established Old Low (sweeping SSL), traps breakout sellers, and aggressively reverses upward, breaking market structure.
Price rallies above an established Old High (sweeping BSL), traps breakout buyers, and aggressively reverses downward, breaking market structure.
Understanding the core components is critical. A valid ICT Turtle Soup requires a specific sequence of events.
Areas where resting stop-loss orders accumulate.
Price intentionally breaches the liquidity pool.
Confirmation and the entry mechanism.
Watch how the Turtle Soup setup forms bar-by-bar.
A pattern alone is not enough. The highest probability setups align with time and narrative.
Algorithmic runs on liquidity are time-dependent. Success increases if the sweep occurs during specific volatility windows:
The setup must align with the Higher Time Frame. A sweep of a 15m low is high-probability IF it occurs inside a Daily bullish array.