Historical Deep Dive

The Origins of Turtle Soup Trading: Linda Raschke, False Breakouts, and Market Psychology

Discover how Linda Bradford Raschke revolutionized false breakout trading and created a strategy that exploits emotional traps in the market

Published: January 2025
12 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
CRT University

The Origins of Turtle Soup Trading: Linda Raschke, False Breakouts, and Market Psychology

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Turtle Soup Trading Origins

INTRODUCTION

Turtle Soup is built on a simple idea: most traders are wrong at obvious highs and lows.

Instead of chasing breakouts, Turtle Soup fades them.

It focuses on false breakouts, stop hunts, and emotional traps.

WHO CREATED TURTLE SOUP?

The Turtle Soup concept was popularized by Linda Bradford Raschke.

She studied market behavior and noticed that when price broke obvious highs or lows,

traders rushed in — and price often reversed violently.

This behavior became the foundation of Turtle Soup.

Trading Pioneer

Linda Bradford Raschke

Creator of Turtle Soup Strategy

A legendary trader who recognized that the most obvious breakouts often become the most profitable reversals.

Her revolutionary approach transformed how traders view false breakouts and stop hunts in the market.

Professional TraderMarket AnalystStrategy DeveloperEducator
Linda Bradford Raschke Portrait
False Breakout Pattern

THE PSYCHOLOGY BEHIND TURTLE SOUP

Turtle Soup is not about indicators.

It is about people.

Breakouts attract:

  • FOMO
  • Late buyers and sellers
  • Stop orders
  • Emotional decisions

Institutions see these clusters as liquidity.

WHAT IS A FALSE BREAKOUT?

A false breakout happens when price breaks a clear high or low,

triggers breakout entries,

sweeps stops,

and then reverses aggressively.

This is the Turtle Soup setup.

Stop Hunt Pattern

WHY TURTLE SOUP WORKS

It uses:

  • Liquidity mechanics
  • Crowd psychology
  • Stop clustering
  • Mean reversion

It fades the crowd.

RETAIL VS SMART MONEY

Retail Traders

Retail traders chase.

Smart Money

Smart money waits.

Turtle Soup aligns with smart money behavior.

Market Psychology Comparison

MODERN EVOLUTION

Today Turtle Soup is combined with liquidity concepts,

time models,

and range theory.

CLOSING

Turtle Soup is not chaos.

It is logic.

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