The ICT Judas Swing Strategy represents a false move against the main trend initiated by Smart Money.
This tactic misled retail traders into misinterpreting the market’s trend direction. It typically occurs between the New York Midnight Open (00:00) and 5:00 AM New York Time.
What is an ICT Judas Swing?
A Judas Swing in ICT trading refers to a deceptive price movement designed to mislead retail traders.
- The price temporarily moves in a specific direction, creating an illusion of trend continuation;
- However, the trend abruptly reverses, and the market moves in the opposite direction.
#1 ICT Bullish Judas Swing
In a Bullish Judas Swing, a false downward move below the opening price deceives traders into believing a downtrend will continue. Then, the price reverses upward, collecting liquidity.
- Smart Money triggers stop-losses of traders who bought at the opening price, forcing them to sell;
- Smart Money gathers liquidity as retail traders sell, pushing the market upward.
#2 ICT Bearish Judas Swing
In a Bearish Judas Swing, a false upward move above the opening price misleads traders into believing an uptrend will continue. Then, the price reverses downward, collecting liquidity.
- Smart Money triggers stop-losses of traders who sold at the opening price, forcing them to buy back;
- Smart Money gathers liquidity as retail traders buy, pushing the market downward.
When Does the ICT Judas Swing Occur?
The ICT Judas Swing typically occurs between New York Midnight Open (00:00) and 5:00 AM New York Time.
It often aligns with the London session opening at 3:00 AM New York Time, developing between the start of the London session and 5:00 AM.
To practice identifying Judas Swings, use indicators available on platforms such as MetaTrader or TradingView:
- Judas Swing Indicator for MetaTrader 4
- Judas Swing Indicator for MetaTrader 5
- ICT Judas Swing Indicator for TradingView
How to Trade ICT Judas Swing?
You must first determine the correct Daily Bias to trade the ICT Judas Swing. Daily Bias refers to the anticipated market direction for the day, identified using various technical analysis methods.
Once you have the correct Daily Bias, you can use the ICT Judas Swing strategy effectively.
Trading the Judas Swing in a Bullish Market
In a bullish market, follow these steps to trade the ICT Bullish Judas Swing:
- Identify the New York Open Price;
- Spot a false downward move below the opening price;
- Detect a market structure shift (MSS) upward after the false downward move.
Once liquidity below the opening price is collected and the market structure shifts upward (between 00:00 and 5:00 AM New York Time):
- Identify a Fair Value Gap (FVG) or aBullish Order Block (OB+) on the buy side;
- Enter a buy trade when the price retraces to the order block or FVG;
- Set the stop-loss a few pips below the Judas Swing.
- For take-profit, target buy-side liquidity (BSL).
Trading the Judas Swing in a Bearish Market
In a bearish market, follow the steps below to trade the ICT Bearish Judas Swing:
- Identify the New York Open Price;
- Spot a false upward move above the opening price;
- Detect a market structure shift (MSS) downward after the false upward move.
Once liquidity above the opening price is collected and the market structure shifts downward (between 00:00 and 5:00 AM New York Time):
- Identify a Fair Value Gap or a Bearish Order Block (OB-) on the sell side;
- Enter a sell trade when the price retraces to the order block or FVG;
- Set the stop-loss a few pips above the Judas Swing.
- For take-profit, target sell-side liquidity (SSL).
Final Notes
The ICT Judas Swing Strategy leverages false moves during specific times (between Midnight and 5:00 AM New York Time), where Smart Money activates stop-losses to manipulate liquidity.
Success requires precision in identifying market structure shifts and validating the Daily Bias. Accurate tools like Fair Value Gaps and Order Blocks help determine optimal entry and exit points.
