Trading AUDUSD | Judas Swing Strategy 15/04/2025Tuesday's price action on FX:AUDUSD , we got a textbook Judas Swing play and for those still getting used to spotting these setups in real-time, let’s break this one down and talk through what happened and more importantly, why it happened.
Going into the session open, we had a relatively tight consolidation, with the 00:00 - 08:30est range acting as a container for liquidity. Price had built up liquidity at the high and low of the zone. Whichever side gets swept first will determine our directional bias for the session
Just after the session began, we saw price aggressively push up taking out the buy side liquidity resting above those early highs. This is what is called the "Judas move", a false breakout meant to trap breakout buyers and entice liquidity into the market. This move is not random. It’s designed to induce traders into the wrong side of the market before the real direction reveals itself
As soon as that liquidity grab was complete, we noticed price begin to stall and form a shift in market structure. This is critical. Once you see a break of structure to the downside, followed by a lower high into a FVG, that’s your confirmation that the real move, the sell-off is in play. We then saw clean displacement to the downside, confirming the manipulation phase was over
Now we wait for a retracement into the Fair Value Gap (FVG). We'll only look to execute a trade once a candle enters the FVG and closes. After a few minutes of waiting, price finally retraced into the FVG, giving us the green light to execute the trade.
Entry: 0.63749
Stop loss: 0.63849
Take profit: 0.63549
This FX:AUDUSD trade gave us a smooth ride with minimal drawdown. Right after entry price moved swiftly into profit. Although there was a brief retrace back to our entry point, it quickly corrected, and we were back in the green. With just a 1% risk, the trade delivered a solid 2% return all within 1 hour and 20 minutes
This setup is an excellent example of why you don’t want to chase early session breakouts blindly. The Judas Swing strategy teaches us to look for the trap, wait for confirmation, and then trade in alignment with the real intention behind price. Beginners often get caught up in the initial move, thinking it’s the real trend. But if you can slow down, understand the time of day, the draw on liquidity, and the reaction around key highs/lows, you’ll start to see how often price manipulates before delivering.
