The Judas swing term was named by ICT, he dubbed this swing concept and utilizes it upon the London Open. The idea is, the market maker will rally or sell price, normally just above or below the Asian session high or low (depending on institutional order flow bias) tricking buyers or sellers into the market to follow its direction. As the Judas swing high or low is formed, price is quickly reversed either taking out stops and or leaving traders out of the game.
The Judas swings happen on all time frames, but 1hr are the best for scalping or day trading- they happen a lot every week.
* Please check out your favorite forex pairs on 1 hour time frame- you will see that they four (4) hour candlestick set up happens at the same time over and over. Why not trade it? Just figure out the risk management around the ATR of pair you trade.
Noted on attached chart is:
Example of a bearish Judas Swing on Eur/Jpy 1 hour chart
and noted when you should not be trading RED x's and when you should be trading GREEN x's. Why? Because each day there are 12 hours of low liquidity and low volume and then there are 12 hours of high liquidity and high volume.
Make Forex trading as easy as you can- trade with big banks not against them and remember that both time and price are most important in Forex.
Good Luck,
Panda
Can you do a 50 pip box on this trade? 1:1 Risk Reward- is it worth it? It depends if you have a high win rate with 1:1 or you need trades to be higher.
The Judas swings happen on all time frames, but 1hr are the best for scalping or day trading- they happen a lot every week.
* Please check out your favorite forex pairs on 1 hour time frame- you will see that they four (4) hour candlestick set up happens at the same time over and over. Why not trade it? Just figure out the risk management around the ATR of pair you trade.
Noted on attached chart is:
Example of a bearish Judas Swing on Eur/Jpy 1 hour chart
and noted when you should not be trading RED x's and when you should be trading GREEN x's. Why? Because each day there are 12 hours of low liquidity and low volume and then there are 12 hours of high liquidity and high volume.
Make Forex trading as easy as you can- trade with big banks not against them and remember that both time and price are most important in Forex.
Good Luck,
Panda
Can you do a 50 pip box on this trade? 1:1 Risk Reward- is it worth it? It depends if you have a high win rate with 1:1 or you need trades to be higher.