Terminology

Turtle Soup Model Terminology

Understanding the terminology used in this model is essential for its successful application. This section explains the key concepts and abbreviations.

Sweep

A Sweep is a price action pattern characterized by a temporary move beyond the high or low of the previous candle, typically through the wick, followed by a retreat and close back within that candle’s range. This movement often represents a false breakout or a liquidity grab, indicating potential market reversals or traps for unsuspecting traders.

In a Bullish Sweep, price briefly breaks above the prior candle’s high but fails to hold, closing back inside the previous range. In contrast, a Bearish Sweep occurs when price dips below the prior low but quickly recovers to close within that candle’s range.

Double Purge (D-purge)

A D-Purge is a more complex form of Sweep where price action aggressively tests both the high and low extremes of the previous candle through its wicks before closing inside that candle’s range. This pattern implies a comprehensive clearing or "purging" of orders on both sides of the market, often signaling a strong liquidity hunt or shakeout.

The last side swept in this process (either the high or the low) indicates the likely direction of market interest or momentum following the purge. D-Purges help reveal hidden liquidity and potential shifts in market control between buyers and sellers.

Market Structure Shift (MSS)

Market Structure Shift (MSS) refers to a change in the underlying market trend or price action behavior that signals a potential reversal or significant shift in momentum.

In ICT trading, a Market Structure Shift occurs when the market breaks its previous structure by failing to make a new high or low, then reverses and breaks the opposite side’s structure, indicating a shift from, for example, a bullish to a bearish trend or vice versa.

Smart Money Technique (SMT)

ICT SMT (Smart Money Technique) Divergence occurs when two positively correlated assets, observed on the same timeframe, display conflicting market structures.

For example, while one asset forms a higher low, the other forms a lower low—indicating a divergence in strength between the two. A common instance of this can be seen between pairs like ES/NQ and GC/SI, where such a discrepancy may signal potential market inefficiency or a forthcoming reversal.

PD Arrays

ICT PD Arrays refer to a group of price action concepts - such as Fair Value Gaps, Order Blocks, Breaker Blocks, Propulsion Blocks, Volume Imbalances, Opening Gaps - within the Inner Circle Trader (ICT) framework that identify areas of price inefficiency, imbalance, or displacement on the chart.

Standard Deviations

Standard Deviations measure the expected variability of price movement from a key reference point, such as the CISD level. They serve as important tools for traders to identify potential price targets and exit levels by highlighting zones where price is statistically likely to encounter support or resistance.

Liquidity

Liquidity refers to price zones where a large concentration of buy and sell orders accumulates, generating significant market interest and often attracting price action. These zones typically align with key levels such as swing highs and lows, previous day or week highs and lows, or other important structural points where traders place orders.