**Trading EURUSD & AUDUSD: The Judas Swing Strategy (05-08-2025)**
*Original Analysis by PentaNoodle via TradingView*
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The forex market is layered with unique patterns, behaviors, and recurring price movements. Astute traders capitalize on these patterns by devising well-crafted strategies. Among the more nuanced tactical approaches is the Judas Swing strategy—a market phenomenon observed in all major currency pairs but particularly notable in popular ones like EURUSD and AUDUSD. Below is an in-depth analysis of this strategy, how it applies to EURUSD and AUDUSD, rules for implementation, additional insights from professional sources, and risk management considerations.
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**Understanding the Judas Swing**
The Judas Swing is a recurring price pattern most visible during the opening hours of the London trading session. Named after the infamous biblical character, Judas, this move lures traders in one direction before sharply reversing, effectively “betraying” early participants. The market creates an initial “false move” that entraps impatient traders, then swiftly reverses, creating a more reliable direction for that session.
– **Timing**: Typically occurs at the beginning of the London session (approx. 2am-5am EST), sometimes extending into the New York session.
– **Currency Pairs**: Commonly spotted in major pairs, with EURUSD and AUDUSD being prime candidates due to high liquidity and volatility during London/NY overlap.
– **Purpose**: Liquidity grab. Market makers push price to trigger stop losses and collect liquidity from retail traders, then move price in the genuine direction of the day.
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**How the Judas Swing Works**
1. **Pre-London Setup (Asian Session)**
– During the Asian session, price usually consolidates in a tight range.
– Support and resistance levels from this range are mapped out by traders.
2. **London Open Move**
– As the European markets come online, price may make a rapid and aggressive movement outside the Asian range—often seen as a spike up or down.
– This move can trigger breakouts above/below Asian highs or lows.
3. **Reversal (Judas Swing)**
– Following the false breakout, the price sharply reverses, moving strongly in the opposite direction.
– Traders who entered on the breakout are trapped, creating fuel for the genuine move as their stops get hit.
4. **Continuation**
– After the reversal, the market typically trends for the remainder of the London session, or until a major support/resistance is met.
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**Trading EURUSD with the Judas Swing Strategy**
Let’s break down actionable steps to implement the Judas Swing on EURUSD:
– **Identify the Asian Session Range**
– Mark the highest and lowest prices set between 8pm and 2am EST.
– Pay attention to price action at these boundaries.
– **Wait for the Judas Move**
– At London open (2am–3:30am EST),
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