ICT Market Maker Primer Course - 12 - Understanding The ICT Judas Swing.srt

Version 1.1 by Drunk Monkey on 2020-11-20 16:02

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ICT: Coach Welcome back. This teaching is going to be

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understanding the ICT Judas swing.

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Okay, the ICT Judas swing, what ICT concepts are going to be

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used in this module we'll be introducing the ICT G to swing

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I'm going to be defining what the ICT Judas swing actually

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is going to show you its utilization in both conditions and

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utilization in bearish conditions. Okay introducing the ICT

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Judas swing. Alright, so the price swing that sets the

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London session high or low is many times in energetic price

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swing. Now it's going to many times be a run on stops or

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Could be returning to a key price level either one can be

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the basis for this quick spike in price. Having a higher

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timeframe understanding and implementing the higher time

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frame analysis to determine what direction the ICT Judas

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swing will form. If you look at the chart to the right here,

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I've basically added more dimension and detail to a earlier

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chart in the series of teachings. Here, I've added a couple

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different reference points that will help solidify the

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understanding that creates the daily high and low, the open

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the high, low and close on a daily candle. I've started your

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journey in my ICT concepts with the lowest timeframe

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possible, which is this small little segment of price action

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from an intraday perspective. Because if you can understand

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that, and as we draw out farther into higher timeframe

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analysis, you'll see that these ideas are actually fractal

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They form on all timeframes. Because let's define the ICT

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due to swing, the first and foremost, you start hunting the

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Judas swing at midnight New York time. Okay, so this is the

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new york opening price. And it ends at 5am New York time.

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And that's basically the entire five hour window that would

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be utilized for anticipating this price move. Now, I'm not

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suggesting that everyone sit up all night long, waiting for

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this Judas swing to appear. There are some things that you

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would look for obviously, but I can't cover everything in

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one teaching. So I'm giving it to you in small little

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pieces. But for the most part between midnight New York time

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at 5am, New York time, there's going to be a high or low

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form for the daily range. Now we understand that typically

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is on the basis of London high or London low forming. The

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Judas swing is a false One that trips up traders that lack

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the understanding of true direction of the day. And this is

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going to come by way of higher timeframe analysis and

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implementing that into intraday price action. Here we have

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an example of a Judas swing. And I'm going to now teach you

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the implementation of it in bullish condition. Okay, so here

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we have the euro dollar chart. And I want you to take notice

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that we have the Asian range applied. We also have the

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midnight delineation in New York. I'm also highlighted the

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opening price at midnight. So this is the new york opening

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price. So whenever you hear me refer to New York open price,

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it's that price. Okay, whatever the opening price is exactly

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at midnight, New York time. I draw that out to around 11

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o'clock in the morning. And obviously, we see the Asian

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range high Asian range low. The premises we would have to

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already arrive at and then analysis that lends well to

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bullish prices for eurodollar for this particular day, if we

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have that assumption, and we stick to our guns, if you will,

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about only taking a trade based on what I'm going to suggest

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to you here, in your demo account, I think you're gonna see

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there is a repeating phenomenon. In consistency. If you

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apply it, it will not give you a trade every single day to

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practice with, it will give you a set up a few times a week.

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If you look at the majors that are coupled with $1, euro

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dollar cable, Aussie dollar dollar yen, there's four markets

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if you just watch those, it'll give you a wide array of

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potential scenarios where this type of thing forms. Now what

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is the Judas swing here and how is it implemented on a

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bullish scenario? We're looking for an Asian range that is

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in a tight consolidation. We look for initial run up the

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trip traders in so buy stops are hit traders are now long on

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a breakout. We wait for the market to trade down below the

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Asian range low that take the stops, anticipate some measure

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of a sweep 1020 pips or so. But this move below the opening

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price that shaded in here. This is actually the ICT Judas

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swing. Now this is a bullish Judas swing and it creates the

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low of the day inside the London session.

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The London low two ends up becoming the low of the actual

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day. So what we look for is obviously a higher time frame

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premise that we are anticipating bullishness or a higher

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close on the day and we wait. We wait for a scenario where

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the agent ranges tripped by running the stops above the

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Asian range high. Okay, this is the first level of

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manipulation and then we anticipate a move below the opening

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price. Preferably we want to see a trade below the Asian

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range low. If you were to trade just below that Asian range

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low as an entry and use a respectable amount of pips in

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turn. Have a stop, it might get you into a pretty good trade

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below below this Asian range low to a certain degree of

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support. In old high trade to classic support resistance

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ideas would lend well here as well. But long and short we

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want to see a measure of move below the opening price. See

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the actual drop below the opening price is a ICT Judas swing

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when the markets bullish otherwise just any little little

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movement below it like this one here. This would not start

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in ICT due to swing. The Judas swing is first it leads

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traders in on the wrong side. And then it tears lower going

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below the Asian range low and this whole move lower opening

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price. That's exactly the ICT Judas swing, my initial

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teaching and when I was teaching on baby pips when I was

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doing videos for that community. It was right away. snatched

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up by a lot of traders and say, Well, this is the Judas

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swing or that's the Judas swing. And I didn't give you the

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details that I'm giving you here. Okay? So there's a

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specific element that has to be there. Otherwise, it's not a

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Judas swing. Okay? And why did I name it a Judas swing? I

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try to teach my children these concepts. And I come up with

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little interesting titles for certain things like order

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blocks, and Judas swings and things like that. And it just

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helps me create a language for them to learn. And it's a

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phenomenon that makes sense because, you know, sheep

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herders, they would use a Judas goat and the Judas goat

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would lead the sheep into the slaughterhouse but the Judas

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goat would turn away right before going into the

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slaughterhouse while the sheep just kept on going on. And

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obviously, you know the outcome you get lamb chops. So, that

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same premise is seen in price action where the the introduce

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false breakout here but then the Judas goat leads price

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action lower And traders that see this they want to go

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short. They sell, sell, sell sell so and that's actually the

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wrong thing to be doing. The actual price is going the other

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way after it goes below the opening price. So what we're

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looking for is the element of a bullish Judas swing is a pop

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above the Asian range high, then a drop below the opening

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price at midnight, and then below the Asian range low when

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that occurs. That's the actual Judas swing that's bullish.

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Now this is what it looks like without any of those elements

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on the price action. And you can see probably doesn't give

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that much detail to you. But again, we add it back. Let that

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burn in. You can see it gets a whole lot more clarity as to

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why price is doing what it's doing.

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Okay, now we're going to define the ICT Judas swing for a

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bearish scenario Okay, so we're looking at the dollar CAD

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here, very similar to what we just mentioned on the previous

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pair, the Euro dollar. Now we'll be looking at the dollar

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CAD with very similar idea. The idea of going into this day

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was higher timeframe bearishness, so we anticipate a lower

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close based on what we anticipate from either higher

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timeframe daily or weekly. But for this example, again, the

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Asian range, small tight consolidation, we want to see it

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drop down, trip traders in right away, then run on the other

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side of the Asian range high. That movement above the

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opening price above the Asian range high that is the Judas

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swing. This is the false or trap move that I use to get in

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on London setups. Now, that's not the only setup, but that's

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one characteristic of the setups that I use. Now, right

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away, somebody's going to say, well, you're holding things

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back, Michael, that's not fair. Well, that's why I have a

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mentorship. I don't hold anything back later. But I've given

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you enough here, that if you look through your price charts,

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Okay, even if you're not trading them live with your demo

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account. Look for these things in hindsight, because by

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printing them out and creating a study log of what these

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individual days look like, it will build a historical

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reference in your memory. And even though you weren't

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actually in these moves, if you are able to watch price

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action live, you'll start to see when it should be

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happening. Again, the number one premise going into this

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when it's bearish, we want to anticipate lower prices

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momentum lower. So that way we'll be looking for after

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midnight, New York time. We want to see price initially

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dropped down below the Asian range low when that happens. We

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are set to wait and anticipate the run back above the Asian

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range high. When it does that and goes above the opening

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price at that moment right here on this candle. This becomes

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a Judas swing, because it's now leading people in on the

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wrong side. Why because we have already arrived that a

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bearish tone on the marketplace so all right now is

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suggesting lower prices. While any rally intraday at this

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time of day should be viewed as a suspect rally or a fake

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move. It's going to run up here and get everybody excited

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and notice the most energy is seen with it making the high

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of the day. This is slow lethargic movement below that's

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typical that stopped running below the Asian range low there

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was short holders that have been trading short now on a

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breakout their stops gonna be reading above here 1020 pips

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type of scenario unfold. That's about how far the Judas will

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reach for creates the high the day and then quickly moves

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away. That's a telltale Hallmark sign that traders have now

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been trapped in any return back to it. All I'm seeing is an

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Asian range return back to the high doesn't give them an

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opportunity to see higher prices and then quickly

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accelerates going lower in the New York session. So

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hopefully I've given you a little bit more detail and

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insight about what makes an ICT Judas swing. It really is

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nothing more than this, just watch the video a few times,

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the elements and characteristics of it are very simple. You

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want to see the manipulation first, when it's bearish below

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the Asian range, well, then climb above the opening price at

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midnight and then go through the Asian range high. Once it

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does that, that's a Judas swing. You can demonstrate that or

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do some back testing and see how this works out. Many times

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when you have a bearish tone from a higher time perspective,

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this is the type of move you'll see. Okay, and another

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classic sign that you're right, is if it starts to move

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aggressively away from that high because now it's already

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done its work. sheep are getting slaughtered. So hopefully,

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you can go through your charts and find many examples of

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this very thing happening. I think if you look at a large

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sampling of data, say you know three or four months and pick

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a couple pairs, you'll see that this is In fact, what

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actually happens in the marketplace, and it's very

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interesting to see it live, I've never had a loss of

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interest when it comes to watching London setups because

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it's a repeating phenomenon. It's pretty classic, it goes on

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and on and on, in terms of consistency, but again, try not

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to believe that it's going to form every single day because

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it's not going to do that, folks, there's gonna be times

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where I set up as this really loaded in your favor to see

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either trade lower with a lower close or a higher close when

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bullish. And this is the type of scenario we are looking

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for. Now, here's the takeaway from this. If you don't see

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this phenomenon take place, it's probably better for you to

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stay at the marketplace, because you want to be trading in

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the most highest probable condition. And in my opinion, if

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you're looking for London setups, this is one of the best

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things to look for and one of the hallmarks to outstanding

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London sessions.

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Hopefully you've enjoyed this presentation and if you'd like

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to More, you can find additional teachings at the inner

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circle trader.com