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