Liquidity Mechanics

Turtle Soup, Liquidity & Stop Hunts Explained

Discover how Turtle Soup exploits liquidity raids and stop hunts to trade against the crowd

Published: January 2025
10 min read

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VaderDan Trading

VaderDan

Expert Trader

Professional trader specializing in Candle Range Theory (CRT), Turtle Soup liquidity strategies, and institutional order flow analysis. Helping traders master false breakout patterns and develop consistent trading strategies.

30+ years experience
50+ articles published
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Turtle Soup, Liquidity & Stop Hunts Explained

Rule the Candle. Rule the Trade.

Liquidity and Stop Hunts

INTRODUCTION

Markets do not move because of news.

They move because of liquidity.

Turtle Soup is a liquidity raid strategy.

It exploits clusters of stop-loss orders

above highs and below lows.

WHAT IS LIQUIDITY?

Liquidity is where orders sit.

  • Stop losses
  • Breakout entries
  • Margin calls

Price moves toward liquidity like a magnet.

Liquidity Pools Visualization

WHY STOP HUNTS HAPPEN

Institutions need size.

They need counterparties.

They use false breakouts

to trigger retail orders

and fill their positions.

This is called a stop hunt.

Stop Hunt Pattern

HOW TURTLE SOUP USES THIS

Turtle Soup waits for:

  • Liquidity to be swept
  • Breakout traders to enter
  • Stops to be triggered

Then it fades the move.

Turtle Soup Execution

RETAIL VS SMART MONEY

RETAIL

Retail reacts.

Retail buys strength.

Retail sells weakness.

SMART MONEY

Smart money plans.

Smart money sells it.

Smart money buys it.

COMMON MISCONCEPTIONS

Stop hunts are not evil.

They are structural.

Markets need liquidity.

CLOSING

If you understand liquidity,

you stop being hunted.

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