The "Judas Swing" is an engineered false price run meant to trap traders into taking positions in the wrong direction. Traders can use this to catch the high or low of the day and sometimes even the week if the proper narrative is in play. A Judas Swing can happen either in the London or in the New York session; however it is most common during the London session.
The concept of a
Judas goat leading sheep to slaughter can be applied to price action in trading.
The London session Judas Swing can set the session's or the day's high or low.
This will come as a quick spike price action hunting for buy or sell liquidity.
During
the London session Judas Swing price action usually trades above or
below the week's opening price and manipulates buy or sell stops. The
Judas Swing usually runs into keys levels such as the previous week's,
the previous day's High/Low and the previous session's High/Low, into
premium/discount levels, and into imbalances (Fair Value Gaps, FVGs).
► The London Session Judas Swing - Bearish Scenario
The London Judas Swing refers to a false move in the market during the London session that tricks traders into believing the price will continue in a particular direction but then reverses. Focus on trading and identifying the London Judas Swing between New York midnight to 5 AM (New York Local Time).
- Mark Highs and Lows of the Asia Session: Identify the highest and lowest price levels reached during the Asia session.
- Mark New York midnight candle opening: Identify the opening price of the candle at New York midnight (NY 00:00).
- Check price trading above New York midnight: During the London Kill Zone (typically from the start of the London session until around 5:00 AM NY local time), check if the price is trading above the opening price of the candle in New York midnight.
- Check for Liquidity Grab at Asian high: If the price is trading above the New York midnight opening during the London Kill Zone, check for a liquidity grab at the Asian session high.
- Identify Market Structure Shift: Look for signs of a market structure shift, indicating a potential change in the market direction.
- Find a favorable entry point (e.g. a Fair Value Gap): Based on the market structure shift and liquidity grab, identify a favorable entry point that aligns with the anticipated market direction.
- Target: In an ideal scenario, set the target at the Asian session low or any visible sell-side liquidity, aiming for a profitable trade.
► The London Session Judas Swing - Bullish Scenario
Here’s a
step-by-step breakdown for the bullish scenario, focusing on identifying
a liquidity grab at the low of the Asian session during the London Kill
Zone, finding the Market Structure Shift (MSS), determining a favorable
entry point (FVG or IFVG), and setting the target at the Asian session
high or buy-side liquidity:
- Identify Liquidity Grab at Asian Session Low: During the London Kill Zone (between New York midnight to 5 AM NY local time), observe if the price trades above the New York midnight opening and check for a liquidity grab at the Asian session low.
- Find Market Structure Shift (MSS): Look for a significant change or shift in market structure, such as a clear indication of a potential bullish movement.
- Determine favorable entry (FVG or IFVG): Based on the observed market structure shift and liquidity grab, identify a favorable entry point (FVG) or an improved favorable entry point (IFVG) that aligns with the anticipated bullish movement.
- Set Target: In this bullish scenario, set the target at the Asian session high or any visible buy-side liquidity, aiming for a profitable trade.
► The New York Session Judas Swing - Bearish Scenario
- Time Frame: Focus on trading from 7:00 AM to 9:00 AM (New York Kill Zone)
- Price Condition: Confirm the price is trading above 7:00 AM and the NY Opening.
- Buy Side Liquidity Hunt: Wait for a move higher to trigger buy orders (liquidity hunt).
- Market Structure Shift (MSS): Look for a significant shift indicating a potential bearish direction.
- Favorable entry (FVG or IFVG): Identify a strategic entry point aligning with the expected bearish movement.
- Target: Aim for sell-side liquidity or visible sell-side order clusters.
- Time Frame: Focus on trading from 7:00 AM to 9:00 AM (New York Kill Zone)
- Price Condition: Confirm the price is trading below 7:00 AM and the NY Opening.
- Sell Side Liquidity Hunt: Wait for a move lower to trigger sell orders (liquidity hunt).
- Market Structure Shift (MSS): Look for a significant shift indicating a potential bullish direction.
- Favorable entry (FVG or IFVG): Identify a strategic entry point aligning with the expected bullish movement.
- Target: Aim for buy-side liquidity or visible sell-side order clusters.
Understanding the ICT Judas Swing.
» Algorithms control the stock market. «
Reference:
Killzones (peak volatility institutional trading periods)
for US Stock Indices and for Forex.
The ICT Judas Swing is a strategic price manipulation pattern in financial trading, primarily associated with the Inner Circle Trader (ICT) methodology. It refers to a deliberate, deceptive market movement designed to trigger retail traders’ stop-loss orders and induce false breakouts, allowing institutional participants to accumulate or distribute positions at more advantageous levels before the price reverses sharply in the intended direction. This tactic exploits liquidity pools, such as previous session highs and lows, key support or resistance zones, and order blocks, effectively raiding stops to create the illusion of a breakout that ultimately fails.
In the London session, the Judas Swing typically develops after a tight Asian-range consolidation. Price first makes an initial run-up or run-down that trips early breakout entries, hitting buy or sell stops. It then reverses by sweeping beyond the Asian high or low—often by 5–10 points in the Nasdaq or 10–20 pips in forex—before reversing through the opening price. This creates the session’s high or low and establishes a bullish or bearish reversal that frequently becomes the day’s extreme within the London timeframe.
During the New York session, two distinct scenarios are recognized. The primary pattern occurs at the 9:30 a.m. EST/EDT open, where a short-term buy-side or sell-side liquidity level is raided, followed immediately by a reversal that drives price toward the opposing liquidity pool. A secondary scenario applies only when major economic news is scheduled for 10:00 a.m.; in such cases, the 9:30 a.m. Judas Swing is absent, and the liquidity raid instead materializes between 10:00 and 10:10 a.m., again producing an immediate directional reversal. Template examples illustrate how the London session’s behavior—whether it shows continuation or reversal—predicts the precise direction and timing of the New York Judas Swing, enabling traders to anticipate whether the 9:30 a.m. move will be to the upside or downside and whether it will continue or reverse thereafter.
Overall, Darya Filipenka's infographic emphasizes that the Judas Swing functions as a high-probability stop raid occurring within clearly defined trading windows (principally 9:30–10:00 a.m. New York time), provided no major news disrupts the setup at 8:30 a.m. By recognizing these engineered liquidity sweeps in advance, traders can position themselves on the correct side of the subsequent institutional reversal rather than being shaken out as retail participants.
