In case you're new to the Judas Swing Strategy, here’s the strategy in a nutshell:
It’s a classic price manipulation strategy where the market fakes a move in one direction (the “Judas” move), usually after the 00:00–08:30 EST window, before sharply reversing. This tactic is often used by smart money to trap retail traders around key highs/lows, followed by a reversal into a Fair Value Gap (FVG) for entry confirmation.
We began Monday spotting a textbook Judas Swing on
EURUSD which was our first trade of the day. Price took out session lows, grabbing liquidity, then gave us a break of structure to the upside and a clean reversal into the FVG.
We entered long with our stop loss below the manipulation low. The trade moved nicely into profit and came within points of our target but just as we were anticipating a clean 1:2, price stalled and reversed aggressively, stopping us out.
Trade Outcome: Loss
Risk-Reward: -1%
Lesson: Even the most valid setups will sometimes fail
The next Judas swing setup came on $GBPUSD. Price swept the low of the zone, then gave a break of structure, with price retracing into the FVG. We entered long, placing the stop loss 10 pips below entry price.
The trade rallied hard post-entry, hitting our target with minimal drawdown
Trade Outcome: Win
Risk-Reward: +2%
This is why we take every valid setup. The win here offset the earlierEURUSD loss, keeping us net even on the day at this point
The final Judas swing setup on Monday was on
AUDUSD, and it couldn’t have been cleaner. After a strong sweep of previous lows, price reversed and broke structure convincingly. An FVG formed and price retraced into it beautifully.
We entered long, placing the stop below the liquidity sweep. Price then rallied steadily throughout the session, and retraced almost hitting our stop loss but turned around and hit our 1:2 target.
Trade Outcome: Win
Risk-Reward: +2%
Despite starting the day with a loss, staying disciplined and trading all valid Judas setups left us with:
1 loss (EURUSD -1%)
2 wins (
GBPUSD +2%, AUDUSD +2%)
Net Gain: +3R
This is why a rules-based approach beats emotional trading. Stick to the process, and the edge takes care of the rest.
It’s a classic price manipulation strategy where the market fakes a move in one direction (the “Judas” move), usually after the 00:00–08:30 EST window, before sharply reversing. This tactic is often used by smart money to trap retail traders around key highs/lows, followed by a reversal into a Fair Value Gap (FVG) for entry confirmation.
We began Monday spotting a textbook Judas Swing on
EURUSD which was our first trade of the day. Price took out session lows, grabbing liquidity, then gave us a break of structure to the upside and a clean reversal into the FVG.We entered long with our stop loss below the manipulation low. The trade moved nicely into profit and came within points of our target but just as we were anticipating a clean 1:2, price stalled and reversed aggressively, stopping us out.
Trade Outcome: Loss
Risk-Reward: -1%
Lesson: Even the most valid setups will sometimes fail
The next Judas swing setup came on $GBPUSD. Price swept the low of the zone, then gave a break of structure, with price retracing into the FVG. We entered long, placing the stop loss 10 pips below entry price.
The trade rallied hard post-entry, hitting our target with minimal drawdown
Trade Outcome: Win
Risk-Reward: +2%
This is why we take every valid setup. The win here offset the earlier
EURUSD loss, keeping us net even on the day at this pointThe final Judas swing setup on Monday was on
AUDUSD, and it couldn’t have been cleaner. After a strong sweep of previous lows, price reversed and broke structure convincingly. An FVG formed and price retraced into it beautifully.We entered long, placing the stop below the liquidity sweep. Price then rallied steadily throughout the session, and retraced almost hitting our stop loss but turned around and hit our 1:2 target.
Trade Outcome: Win
Risk-Reward: +2%
Despite starting the day with a loss, staying disciplined and trading all valid Judas setups left us with:
1 loss (
EURUSD -1%)2 wins (
GBPUSD +2%, AUDUSD +2%)Net Gain: +3R
This is why a rules-based approach beats emotional trading. Stick to the process, and the edge takes care of the rest.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Innovative all-in-one trading and backtesting platform
cleo.finance
Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.
cleo.finance
Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.