The ICT Judas Swing is a key concept in the Inner Circle Trader (ICT) methodology, referring to a manipulative price move that occurs at the London Open (or sometimes the New York Open).
This move is designed to deceive retail traders by triggering liquidity before reversing in the intended direction of smart money.
The term “Judas” is used because, just like Judas Iscariot’s betrayal, the market initially appears to move in one direction, leading traders into false confidence, only to reverse and move in the opposite direction.
1. Understanding the ICT Judas Swing
It typically occurs within the first 1-3 hours of the London or New York session.
The market creates a false breakout (a liquidity grab) before reversing in the direction of the true move.
Smart money uses this move to manipulate retail traders into taking the wrong position before pushing price in the intended direction.
2. How the Judas Swing Works in ICT
Step 1: Identifying the Kill Zone
- The Judas Swing usually occurs during the London Kill Zone (2 AM – 5 AM EST) or the New York Kill Zone (7 AM – 10 AM EST).
- During these times, liquidity is highest, making it ideal for institutions to manipulate price.
Step 2: Inducing Retail Traders into the Wrong Direction
- The price moves aggressively in one direction, making it appear as if a breakout is happening.
- Retail traders jump in, believing they are catching a strong move.
- They place stop losses near recent swing highs/lows.
Step 3: The Reversal – Smart Money’s Real Move
- After trapping traders, institutions reverse the price, triggering stop losses and creating a liquidity pool.
- The true move now begins, aligning with the larger trend.
3. Examples of the ICT Judas Swing
Example 1: London Open Judas Swing (Bullish Trap)
- Scenario: EUR/USD has been in an uptrend, consolidating near 1.1000 before the London session.
- Judas Move: At 3 AM EST, price spikes to 1.1050, breaking previous highs.
- Trap: Retail traders enter long positions, thinking a breakout is happening.
- Reversal: By 4 AM EST, price drops back below 1.1000, stopping out long traders.
- True Move: The market then resumes the actual bullish trend after liquidity is collected.
Example 2: New York Open Judas Swing (Bearish Trap)
- Scenario: GBP/USD is in a downtrend, consolidating around 1.2500 before New York Open.
- Judas Move: At 8 AM EST, price spikes to 1.2550, breaking resistance.
- Trap: Retail traders go long, expecting continuation.
- Reversal: Price suddenly drops below 1.2500, stopping out longs.
- True Move: The market then trends downward as smart money takes control.
4. How to Trade the ICT Judas Swing
1. Identify Key Liquidity Areas
- Look for previous highs/lows where retail traders are likely placing stop losses.
- These areas will act as liquidity pools that smart money targets.
2. Watch the Kill Zones
- Most Judas Swings happen during London Open (2 AM – 5 AM EST) and New York Open (7 AM – 10 AM EST).
- Avoid taking early trades before confirmation.
3. Use Fair Value Gaps (FVG) and Order Blocks for Confirmation
After the Judas Swing, check for order blocks or fair value gaps where price may reverse.
4. Wait for the Market Structure Shift
- If price initially spikes up but then breaks structure downward, it signals a bearish Judas move.
- If price drops and then breaks structure upward, it signals a bullish Judas move.
5. Final Thoughts
The ICT Judas Swing is a powerful manipulation move used by institutions to trap retail traders before pushing price in the intended direction.
By understanding this concept, traders can avoid false breakouts and enter trades in alignment with smart money.
Always wait for confirmation, use kill zones to time entries, and incorporate ICT concepts like liquidity pools, order blocks, and fair value gaps for precision.
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