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"The Turtle Soup Pattern describes a false continuation break that can lead to great reversal trades. Similar to a double top/bottom but price goes beyond the prior level to take out the stops before reversing fooling the unwary into entering thinking continuation. \n  \nYou need to know of it because it is famous for suckering in retail traders to trade the wrong way thinking price has broken the prior high/low they enter and are then trapped. This is a bull/bear trap or a stop run. \n  \nMoritz of Tradeciety has done a short video describing how he trades them. \n  \nhttps://www.youtube.com/watch?v=Tp4I1vy24TI&amp;feature=youtu.be \n  \nThe pattern is from Linda Raschke's book 'Street Smarts' written in the 1980s but has been refined since then (can be downloaded free as pdf, just google search) \n  \nMichael Huddleston of Inner Circle Trader fame (ex hedge fund and institutional trader) uses it often and has produced youtube video's on it as well. He also did a lot of work for the babypips web site many years ago and wrote extensively about it on their forum pages. \nHere Michael describes his OTE (optimal trade entry based on Fib) and why false breaks occur. If you want to watch some of his youtube vids be warned, he swears worse than Tom Dante and goes into regular bipolar induced rants (self confessed) which I find highly entertaining.  \n  \n﻿ \n  \nNote that 'street money' 'reacts to price'  because it has to, 'smart money' can anticipate price because they are holding the massed orders in their hands. \n  \n  \n  \n  \n  \n  \n  \n  \n  \n"
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