Title: Trading the EUR/USD Using the Judas Swing Strategy – A Detailed Breakdown
Original Author: @ForexTeric (Published on TradingView)
The EUR/USD currency pair is one of the most actively traded pairs in the forex market, making it an ideal instrument for implementing advanced trading strategies. One of these is the “Judas Swing” strategy, which is designed to take advantage of false market moves at the beginning of the trading day. This strategy exploits liquidity grabs and market manipulation patterns that typically occur during the London and New York sessions.
The following article expands upon the ideas originally presented by @ForexTeric on TradingView, providing a comprehensive guide on how to implement the Judas Swing approach to trading the EUR/USD pair.
Understanding the Judas Swing Strategy
The Judas Swing Strategy is based on the concept of market manipulation often seen at the start of a trading session. The term “Judas Swing” was popularized within the inner-circle trading communities and refers to a deliberate false move in one direction, intended to trigger stop losses and trap retail traders, before the market reverses back into its intended direction.
Key Concepts Behind the Judas Swing Strategy:
– Liquidity Pools: Areas where large numbers of stop losses are placed. These are typically located above recent highs or below recent lows. Smart money tends to target these areas to fuel large moves.
– False Breakouts: The Judas swing capitalizes on the market’s tendency to initiate a breakout at the London open only to reverse the move shortly after.
– Kill Zones: Specific high-activity trading times like the London Open (7 AM GMT) or New York Open (12 PM GMT), which provide optimal entry timing.
– Institutional Order Flow: The strategy uses behavioral analysis of price action that reflects institutional accumulation and distribution phases.
Timeframe and Tools Needed:
To trade this strategy effectively, traders typically employ the 15-minute (M15) timeframe for detailed entries and analysis, while referencing the H1 and H4 timeframes for overall market structure.
Tools suggested:
– Support and Resistance Zones
– Session Indicators (to mark London and New York Opens)
– Liquidity Grab Indicators or Price Action Analysis
– Fibonacci Retracement (optional for target zones)
Pre-Market Structure Analysis
Before entering any trades, it’s crucial to assess the market structure from a larger timeframe perspective. On the daily and H4 charts, identify key levels where price has previously reacted or consolidated. These zones often mark potential battle areas between buyers and sellers.
Steps for Pre-Market Analysis Include:
– Identifying the prevailing market trend (bullish or bearish)
– Marking out previous day’s high, low, and midpoint levels
– Highlighting any imbalance zones or fair value gaps on the chart
– Observing recent liquidity sweeps near structure points
Ideal Setup Conditions
The Judas Swing strategy thrives when specific criteria align during the European or American trading sessions.
Checklist for Ideal Setup Conditions:
– London session opens with a small Asian range
– Price sweeps the liquidity above or below the Asian session extremes
– A quick reversal within the first 30 to 90 minutes post-London open
– Reentry into the Asian range confirms the false move
– Price action displays a shift in market structure, often marked by a break of an intermediate low/high on M5 to M15 timeframe
– Confirmation via volume spike or divergence (MACD, RSI, OBV)
Trade Example Overview: EUR/USD – August 20, 2025
According to @ForexTeric’s original TradingView post, here’s a well-executed example of the Judas Swing in action on August 20, 2025:
– The Asian session formed a narrow range overnight with a clearly defined high and low
– At the London session open, EUR/USD spiked above the Asian session high, triggering buy stops placed by retail traders
– This quick rally lacked follow-through volume and failed to break beyond the resistance zone marked from the H1 chart
– Shortly
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