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USDJPY trade ideas

USDJPY Buyers In Panic! SELL! My dear friends, USDJPY looks like it will make a good move, and here are the details: The market is trading on 156.76 pivot level. Bias - Bearish Technical Indicators: Supper Trend generates a clear short signal while Pivot Point HL is currently determining the overall Bearish trend of the market. Goal - 154.65 Recommended Stop Loss - 157.90 About Used Indicators: Pivot points are a great way to identify areas of support and resistance, but they work best when combined with other kinds of technical analysis ——————————— WISH YOU ALL LUCK
Short
by AnabelSignals
6
USDJPY Will Move Higher! Long! Please, check our technical outlook for USDJPY. Time Frame: 1h Current Trend: Bullish Sentiment: Oversold (based on 7-period RSI) Forecast: Bullish The market is testing a major horizontal structure 153.785. Taking into consideration the structure & trend analysis, I believe that the market will reach 154.383 level soon. P.S Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all. Like and subscribe and comment my ideas if you enjoy them!
Long
by SignalProvider
3
USDJPY → Consolidation of price in the sell zoneFX:USDJPY reaches a strong resistance at 153.87 within an uptrend. Will this direction continue, as the Fed rate meeting is ahead.... Fundamentally, today is a big day for the markets. At 19:00 GMT the Fed rate meeting, where with a 93% probability the decision to cut interest rates by 0.25% will be made, which will make the dollar less attractive, but for how long, given Trump's policy? Accordingly, the dollar is in a consolidation phase, traders are waiting. If the dollar starts a downward correction, it will affect the currency pair accordingly. But I do not exclude that on the background of high volatility the price may form a retest of resistance and a false breakout. Resistance levels: 154.95, 156.75 Support levels: 151.44, 159.69 At the moment, after the retest of 0.79 fibo and the key resistance at 153.877, the price is consolidating in the selling zone. The fundamental background may increase the pressure, which may lead to a fall. Regards R. Linda!
Short
by RLinda
5
Bearish reversal?USD/JPY is rising towards pivot which has been identified as an overlap resistance and could reverse to the 1st support which acts as a pullback support. Pivot: 154.85 1st Support: 151.56 1st Resistance: 157.65 Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Disclaimer: The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Short
by ICmarkets
2
Bearish drop?USD/JPY is falling towards the pivot which acts as a pullback support and could bounce to the 1st resistance. Pivot: 155.72 1st Support: 154.28 1st Resistance: 157.72 Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Disclaimer: The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Long
by ICmarkets
2
Market Year Wrap 2024: Key Highlights and Outlook for 2025Market Year Wrap 2024: Key Highlights and Outlook for 2025 The year 2024 has been a transformative period in the global financial markets, characterised by a mix of challenges and opportunities. Inflation battles, monetary policy shifts, economic uncertainties, and surprising bouts of optimism dominated the landscape. These forces created a volatile yet dynamic environment where some markets flourished while others struggled under significant pressure. From central bank interventions to geopolitical developments and technological advancements, every corner of the financial world experienced notable activity. In this article, we will take a detailed look at the major trends and events shaping the global economy in 2024 and provide insights into what lies ahead in 2025. Inflation and Interest Rates: A Balancing Act In 2024, inflation showed signs of moderation globally. In the United States, it stabilised around 2.7%, marking a notable shift that bolstered market confidence and set a cautiously optimistic tone for the broader economy. Throughout the year, rate cuts dominated monetary policy discussions. Following the unprecedented rate hikes implemented in response to the COVID-19 pandemic, major central banks began scaling back rates. However, they had to walk a tightrope between a complex landscape of lower but still stubborn inflation and resilient labour markets and the necessity for monetary easing. The magnitude and pace of these cuts varied significantly, reflecting differences in economic conditions across regions and creating complex relationships in the forex market. Analysts widely anticipate that policymakers will adopt a more measured approach to easing monetary policy as 2025 unfolds. Most developed market central banks, excluding Japan, are expected to reduce interest rates to neutral levels by the year's end. However, if economic conditions deteriorate more than anticipated, there is potential for central banks to push rates below neutral to support growth. The Fed, in particular, faces a delicate balancing act, as it must carefully navigate potential policy developments—such as trade tariffs—that may not ultimately materialise. At the same time, any resurgence in inflationary pressures could prompt a shift toward a more restrictive rate trajectory in 2025 and beyond, further complicating the policy landscape. Forex Market: A Year of Divergence Currency markets in 2024 were shaped by a combination of monetary policy shifts, economic recovery efforts, and political developments. The US dollar experienced a rollercoaster year, initially depreciating against major currencies as markets anticipated the Federal Reserve’s first rate cut since the COVID-19 pandemic. However, it rebounded toward the end of the year, influenced by post-election optimism and expectations of protectionist trade policies under the Trump administration. The British pound demonstrated resilience throughout 2024, supported by the Bank of England’s patient and measured approach to monetary policy. Despite potential rate cuts, the pound maintained its strength, reflecting confidence in the UK’s economic fundamentals. In contrast, the euro faced significant headwinds. The ECB’s aggressive easing measures widened interest rate differentials with the pound and the dollar, weakening the euro. By the end of the year, trade uncertainty stemming from potential US tariffs weighed heavily on the euro, given the Eurozone’s dependence on global trade. The Japanese yen experienced mixed fortunes, bolstered by the Bank of Japan’s decision to raise its benchmark interest rate to 0.25%, the highest level since 2008. This move provided much-needed support for the yen, although concerns about potential US trade policies created downside risks. Meanwhile, commodity-linked currencies such as the Australian and Canadian dollars saw fluctuations driven by interest rate differentials, global trade dynamics and their respective economies' ties to the United States and China. Analysts caution that President Trump’s tariff policies could intensify the overvaluation of the US dollar in 2025, potentially heightening the risk of global financial instability. The prospect of trade restrictions may add complexity to an already volatile economic landscape. Commodity Markets: Precious Metals Shine, Oil Struggles Commodity markets have seen a resurgence in investor interest. According to data from WisdomTree and Bloomberg, the proportion of investors allocating resources to commodities rose to 79% in 2024, compared to 71% in 2023—an expected rebound after a challenging year for commodities in 2023. Precious metals, particularly gold and silver, emerged as top performers. As of time of the writing on 11th December, gold prices surged by over 30%, while silver outpaced gold with a 35% gain. Several factors drove these impressive performances, including geopolitical tensions, economic uncertainties surrounding the US presidential election, and strong demand from emerging market central banks. According to analysts, these factors should continue supporting precious metals in 2025. Natural gas prices also experienced significant growth, rising 30% to 50% across major markets in Asia, Europe, and North America. Colder weather forecasts have fueled demand, particularly in Europe and Asia. Analysts suggest that this bullish sentiment in gas markets is likely to persist through the winter, with prices unlikely to see significant declines until well into 2025. However, high gas prices are expected to increase power costs globally, straining fragile economic growth in key regions such as China and Europe while rekindling inflationary concerns. Oil, however, faced a challenging year despite geopolitical crises and production cuts. One of the reasons is a weak demand, particularly from China. In the United States, gasoline inventories exceeded long-term seasonal levels. According to analysts, the growing transition to electric vehicles in developed markets represents a long-term challenge for oil demand. Although some analysts anticipate a recovery in 2025 as OPEC+ production cuts take effect and geopolitical risks persist. Stock Markets: Tech Leads the Charge The US stock market delivered robust performances in 2024, reaching new record highs, with the technology sector at the forefront. Innovations in artificial intelligence (AI) played a pivotal role in driving growth, with major companies such as Microsoft, Nvidia, and Amazon reporting strong earnings. This momentum boosted broader indices, with the S&P 500 and Nasdaq 100 recording gains of 28.57% and 27.4%, respectively, as of 10th December. The broader market also benefited from declining inflation, interest rate cuts, and better-than-expected corporate earnings. These factors may contribute to the stock market growth in 2025. However, stretched valuations temper some of the optimism, and concerns about potential trade tariffs add a layer of uncertainty. Looking Ahead to 2025: Key Market Drivers As we look ahead to 2025, several critical factors are poised to influence the direction of financial markets. Central Bank Policies Central banks will remain pivotal in shaping financial markets in 2025. The balance between maintaining growth and addressing inflationary pressures will be a key theme for central banks throughout the year, influencing the strength of equity markets. Interest rate differentials will play a significant role in determining currency movements. Global Economic Recovery The global economy is expected to continue rebounding from pandemic effects. GDP growth, employment trends, and trade balances will be key factors influencing financial markets. Trade War Uncertainty Potential trade tariffs pose a significant risk. The scope, products, and geographies targeted will determine the impact on global GDP, inflation, and interest rates. Any escalation in trade tensions could disrupt markets and strain economic recovery. Artificial Intelligence and Innovation AI and emerging technologies may drive productivity gains, offering an upside to global growth. By boosting efficiency and reducing costs, AI could also exert disinflationary pressure, influencing economic dynamics in the long term. Geopolitical Tensions Geopolitical risks, including trade disputes and political conflicts, remain unpredictable but could disrupt markets. Final Thoughts: Embracing Opportunities Amid Volatility The year 2024 brought its share of challenges and opportunities, showcasing the resilience and adaptability of global markets. From navigating geopolitical uncertainties and evolving monetary policies to embracing the transformative potential of technologies like artificial intelligence, market participants faced a dynamic landscape. Looking ahead to 2025, the horizon offers new opportunities. Continued advancements in innovation, shifts in economic policies, and the resolution of key global tensions could set the stage for exciting market fluctuations. Use the new year to test your skills and look for new opportunities! This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
by FXOpen
2
USD/JPY Rises to a Nearly 5-Month HighUSD/JPY Rises to a Nearly 5-Month High According to the USD/JPY chart today, the US dollar has climbed to 157 yen. This movement was driven by monetary policies of both countries' central banks. The Federal Reserve took a hawkish stance, with Chair Jerome Powell suggesting the possibility of fewer rate cuts in 2025 than earlier expected. On the other side, the Bank of Japan's Governor Kazuo Ueda, as reported by Reuters, made "surprisingly dovish" remarks. He delivered a cautious outlook on monetary policy following the central bank’s decision to maintain its interest rates unchanged. He emphasised that: → Real interest rates remain very low. → New risks are emerging due to trade policies proposed by US President-elect Donald Trump. Technical analysis of the 4-hour USD/JPY chart shows that: → The pair moves in an upward trend, but based on pivot points (marked in red), the slope of the ascending channel might shift. → The RSI is at a multi-month high, and the black trendlines highlight significant demand strength in the market throughout December. We can suggest that the US dollar is significantly overbought relative to the yen. Could a pullback, such as to the lower black trendline, be expected? Given the importance of fundamental factors such as central bank decisions, any potential pullback might not threaten the continuation of the current uptrend through the end of the year. This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
by FXOpen
2
USD/JPY Trade Recap: Precision at Its Best!This trade on USD/JPY played out beautifully, showcasing the power of a well-structured approach and advanced tools like the WiseOwl Indicator. Let’s break it down: Trade Context: On the 1H timeframe, the market was respecting a clear bullish structure. Using the WiseOwl Indicator, I spotted an ideal entry point at the breakout of the accumulation phase, which aligned perfectly with the higher timeframe trend. What Happened: The entry signal was spot on, and price moved precisely toward my medium-term target of 156.74 and even beyond. Currently, price is hovering around 157.45, and I’m watching for a potential pullback into the 155.50–156.00 zone for the next move. Key Takeaway: The WiseOwl Indicator helps simplify decision-making by highlighting key setups in alignment with market structure. Paired with patience and a solid understanding of context, this creates high-probability opportunities. 💬 What are your thoughts on this trade? Are you using similar tools to refine your entries and exits? Let’s discuss below!
Long
by TraderOuss_LumaNex
1
USDJPY → Price Struggles at Resistance, Eyes a PullbackHello, my wonderful friends of Ben! Recently, USDJPY has been struggling to maintain its peak around the 154.00 USD level. The bullish momentum of USDJPY has been hindered by several factors, including the ongoing Fed interest rate meeting. Fundamentally, today is a critical day for the market. At 19:00 GMT, the Fed’s interest rate meeting, with a 93% probability of a 0.25% rate cut decision, will take place. This will make the dollar less attractive. If the dollar starts to adjust downward, it will affect the corresponding currency pairs. However, I do not rule out the possibility that, amidst high volatility, the price could form a retest of the resistance level and a false breakout. Personally, Ben expects the price to consolidate below the resistance area around 155.00, with corrective pressure against the trend dominating in the near future. The current support level is around 152.01. If this level is breached, it could lead USDJPY to a deeper decline, potentially reaching 149.37. Best regards, Bentradegold!
Short
by Bentradegold
3
PZone PRO🔹 **Summary:** PZone PRO is an innovative trading tool designed to enhance your trading precision and save time. Using patented technology, PZone PRO analyzes financial markets to identify Un-Filled Orders (UFOs) and maps these areas on your chart. By leveraging these UFOs, traders can determine entry points, stop losses, and targets with high precision, providing a strategic edge in trading decisions. The Demand Supply Zone indicator helps identify Demand and Supply zones on the chart by marking specific patterns. It detects patterns such as Drop-Base-Rally and Rally-Base-Rally to identify Demand Zones, as well as Rally-Base-Drop and Drop-Base-Drop for Supply Zones. 🔹 **Key Concepts:** - **Identification of Key Price Areas:** PZone PRO detects price zones with pending buy or sell orders. - **Dynamic Visualization:** UFOs are displayed as green zones (for buying) or red zones (for selling), indicating potential price reversal points. - **Precision Advantage:** This tool supports all trading styles (long-term, medium-term, short-term) and is suitable for hedging strategies. - **Time Flexibility:** PZone PRO can be used across various timeframes, from seconds to monthly intervals. - **Benefits for Options Traders:** Assists in determining ideal strike prices and areas to sell out-of-the-money options. 🔹 **Key Features:** - **Automatic Zone Analysis:** Helps pinpoint Supply/Demand zones with precision. - **Timeframe Flexibility:** Usable across multiple timeframes. - **Customizable Colors:** Fresh zones and tested zones can be assigned different colors. - **5 EMA Indicators:** Includes EMA 200, 100, 50, 20, and daily EMA 9 (adjustable as needed). 🔹 **Final Notes:** Trading involves high risk, and past performance does not guarantee future results. PZone PRO helps uncover hidden market opportunities but should be used with proper understanding and well-developed strategies.
by DaniPutra21
2
Possible 1000pip Projection For 2025Following up on our previous analysis of USDJPY, we’re now active on this trade. As the market unfolds, we’ll be looking for opportunities to scale in with additional positions. Always remember, the market has the final say—it’s not about being right but about staying adaptable. Ensure you’re applying proper risk management and stay optimistic. Keep an open mind and trust the process. Stay tuned here for regular updates as we let patience lead the way. Ieios!
by Ieios
4
USDJPY Set To Fall! SELL! My dear followers, I analysed this chart on USDJPY and concluded the following: The market is trading on 153.70 pivot level. Bias - Bearish Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bearish continuation. Target - 152.34 Safe Stop Loss - 154.61 About Used Indicators: A super-trend indicator is plotted on either above or below the closing price to signal a buy or sell. The indicator changes color, based on whether or not you should be buying. If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy. ——————————— WISH YOU ALL LUCK
Short
by AnabelSignals
USDJPY - Short active !!Hello traders! ‼️ This is my perspective on USDJPY. Technical analysis: Here we are in a bearish market structure from daily timeframe perspective, so I look for a short. I expect bearish price action as price rejected from bearish OB + institutional big figure 154.000. As well we have hidden divergence for sell. Fundamental news: On Wednesday (GMT+2) we will see results of Interest Rate on USD and on Thursday on JPY, news with high impact on currencies. Like, comment and subscribe to be in touch with my content!
Short
by Snick3rSD
What Is ICT Turtle Soup, and How Can You Use It in Trading?What Is ICT Turtle Soup, and How Can You Use It in Trading? The ICT Turtle Soup pattern is a strategic trading approach designed to exploit false breakouts in financial markets. By understanding and leveraging liquidity grabs, traders can identify potential reversals and enter trades with relative precision. This article delves into the components of the ICT Turtle Soup pattern, how to identify and use it, and its potential advantages and limitations, providing traders with valuable insights to potentially enhance their 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 key 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​. The pattern is named humorously after the original Turtle Traders' strategy, which focuses on genuine breakouts. In contrast, ICT Turtle Soup takes advantage of these failed attempts, thus "making soup out of turtles" by transforming unproductive breakout attempts into potentially effective trades​. Typically, traders look for specific signs of a false breakout, such as a price briefly moving above a recent high or below a recent low but failing to sustain the move. This strategy is particularly effective when used in conjunction with other ICT concepts, such as higher timeframe analysis and understanding of market structure​. Components of the ICT Turtle Soup Pattern To effectively utilise the ICT Turtle Soup setup, it’s essential to understand its core components: order flow and market structure, liquidity, and internal versus external liquidity. Order Flow and Market Structure Order flow and market structure are critical in analysing the ICT Turtle Soup pattern. This involves observing price movements and traders' behaviour in different timeframes. Traders can analyse higher and lower timeframe price movements in FXOpen’s free TickTrader platform. Higher Timeframe Structure This refers to the broader trend governing the lower timeframe trend. For traders using the 15m-1h charts to trade, this might mean structure visible on 4-hour, daily, or weekly charts. Higher timeframe structures help traders identify the major support and resistance levels. These levels are essential as they mark the boundaries within which the market generally oscillates. Traders use these to determine the prevailing market direction and potential areas where false breakouts (stop hunts) are likely to occur​. Lower Timeframe Structure Lower timeframe structures are examined on hourly or minute charts. These provide a more detailed view of price action within the higher timeframe’s range and account for the bullish and bearish legs that dictate a broader higher timeframe trend. Liquidity and Stop Hunts In general trading terms, liquidity represents how easy it is to enter or exit a market. However, in the context of the ICT Turtle Soup pattern, areas of liquidity can be identified beyond key swing points. Stop Hunts Stop hunts, also known as a liquidity sweep, occur when the price temporarily moves above a resistance level or below a support level to trigger stop-loss orders. This movement creates a liquidity spike as traders' stops are hit, providing a favourable condition for the price to reverse direction. ICT Turtle Soup traders seek to exploit these moments by entering trades opposite to the initial breakout direction once the liquidity is absorbed. Internal and External Liquidity Understanding internal and external liquidity is vital for applying the ICT Turtle Soup pattern effectively. Internal Liquidity This refers to the liquidity available within the range of the higher timeframe structure. It involves identifying smaller support and resistance levels within the larger range. For example, in a bullish leg, there will be a series of higher highs and higher lows; beneath these higher lows is where internal liquidity rests. This internal liquidity will be targeted to form a bearish leg as part of a higher timeframe bullish trend. External Liquidity This involves liquidity that exists outside the key highs and lows of the higher timeframe trend. To use the example of the bullish leg in a higher timeframe bullish trend, the low it originated from and the high it creates as the bearish retracement begins count as areas of external liquidity. Order Blocks and Imbalances While not directly involved in the ICT Turtle Soup setup, understanding order blocks and imbalances can provide insight into where the price might head and the general market context. Order blocks are areas where significant buying or selling activity has previously occurred, often due to institutional orders. These blocks represent zones of support and resistance where the price is likely to react. Bullish Order Blocks These are typically found at the base of a significant upward move and indicate zones where buying interest is strong. When the price revisits these areas, it often finds support, making them potential entry points for long trades​. Bearish Order Blocks Conversely, these are located at the top of significant downward moves and signal strong selling interest. These zones often act as resistance when revisited, making them strategic points for short trades​. Imbalances Imbalances, or fair value gaps (FVGs), are price regions where the market has moved too quickly, creating a significant disparity between the number of long and short trades. These gaps often occur due to high volatility and indicate areas where the market might revisit to "fill" the gap, thereby achieving fair value. In other words, when a price rapidly moves in one direction, it leaves behind an area with little to no trading activity. The market often returns to these imbalanced zones to facilitate proper price discovery and liquidity. How to Use the ICT Turtle Soup Strategy Here's a detailed breakdown of how traders use the ICT Turtle Soup pattern. Establishing a Bias Traders begin by analysing the higher timeframe trend, such as the daily or weekly charts, to establish a market bias. This analysis helps determine whether the market is predominantly bullish or bearish. Identifying this trend is crucial as it guides where to look for potential Turtle Soup setups. For instance, the example above shows AUDUSD initially moving down after a bullish movement off-screen. It eventually breaks above the lower high, indicating that the higher timeframe trend may now be bullish. Similarly, the shorter-term downtrend beginning from mid-May also saw a new high, meaning a trader may want to look for long positions. Identifying Internal Liquidity Once the higher timeframe trend is established, traders look for a move counter to that higher timeframe trend. In the example shown, this would be a downtrend counter to the bullish structure break. They mark levels of internal liquidity; in a bullish leg, these would be below swing lows and vice versa. These areas are likely to attract stop-loss orders. Looking for Liquidity Taps The next step involves waiting for these internal liquidity areas to be tapped. This typically happens when the price briefly breaks through a support or resistance level, triggering stop-loss orders before quickly reversing direction. Ideally, the price should tap into the same area or order block where the internal liquidity formed and then exhibit a quick reversal, often leaving just a small wick. This movement indicates a liquidity grab, where large players have taken out stops to facilitate their own orders. Lower Timeframe Confirmation After identifying a liquidity grab beyond this internal liquidity level, traders look for an entry. On a lower timeframe, they look for a similar pattern: internal liquidity being run and a subsequent break of structure in the direction of the higher timeframe trend. This involves price retracing back inside the range to fill an imbalance and meet an order block, which provides a precise entry point. Executing the Trade Once these conditions are met, traders typically enter the market. Specifically, they’ll often leave a limit order at an order block to trade in the direction of the higher timeframe trend. They place a stop loss just beyond the liquidity grab, either above the recent high for a short trade or below the recent low for a long trade. Profit targets are often set at key liquidity levels, such as previous highs or lows, where the market is likely to encounter significant activity​. Potential Advantages and Limitations The ICT Turtle Soup pattern is a trading strategy with several potential benefits and drawbacks. Advantages - Precision: Allows for precise entry points by identifying false breakouts and liquidity grabs​. - Adaptability: Effective across different timeframes and market conditions, including ranging and trending markets. - Risk Management: Built-in risk management by placing stop losses just beyond the liquidity grab points. Limitations - Complexity: Requires a deep understanding of market structure, liquidity, and order flow, making it challenging for less experienced traders​. - Market Conditions: Less effective in highly volatile or illiquid markets where false signals are more common. - Time-Consuming: Demands continuous monitoring of multiple timeframes to identify valid setups, which can be time-intensive. The Bottom Line The ICT Turtle Soup pattern offers traders a powerful tool to identify and exploit false breakouts in the market. By understanding its components and applying the strategy effectively, traders can potentially enhance their trading performance. To put this strategy into practice, consider opening an FXOpen account, a reliable broker that provides the necessary tools and resources for trading. FAQs What Is ICT Turtle Soup in Trading? ICT Turtle Soup is a trading pattern that exploits false breakouts. It identifies potential reversals when the price briefly moves beyond a key support or resistance level, triggering stop-loss orders before reversing direction. This strategy aims to take advantage of these liquidity grabs by entering trades opposite to the initial breakout direction​. How to Identify ICT Turtle Soup Conditions? To identify the ICT Turtle Soup pattern, traders analyse higher timeframe trends to establish market bias. They then look for counter-trend moves and mark internal liquidity areas. The pattern is identified when the price taps these liquidity zones and reverses quickly, often leaving a small wick. This signals a liquidity grab and potential trade setup in the direction of the higher timeframe trend​. How to Use the ICT Turtle Soup Pattern? Using the ICT Turtle Soup pattern involves several steps. First, traders establish a market bias based on higher timeframe analysis. Then, they look for liquidity grabs at marked internal liquidity areas, indicating false breakouts. The next step is to confirm the setup on a lower timeframe by observing a similar liquidity grab and structure break. Lastly, they enter trades in the direction of the higher timeframe trend, placing stop losses just beyond the liquidity grab and targeting key liquidity levels for profit-taking​. This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
Education
by FXOpen
1