Understanding The ICT Judas Swing

Introduction to the Judas Swing Concept

In this section, the speaker introduces the concept of the Judas swing and explains how it can be used in both futures and forex trading.

Understanding the Judas Swing

• A Judas swing is a fake run in the opposite direction of where price really intends to go.

• The speaker provides a link to Inner Circle Trader's channel for more information on this concept.

Live Teaching Session

• Every Monday at 9 AM Eastern Time, the speaker hosts a live teaching session on Discord.

• The session is free and open to anyone who wants to listen or ask questions about chart breakdowns.

Analyzing ES Chart Using Judas Swing Concept

In this section, the speaker analyzes an ES chart using the Judas swing concept and explains how traders can use it to identify premium or discount marketplaces.

Four Hour Chart Analysis

• The four-hour chart is considered a higher time frame chart.

• The speaker marks levels of support and identifies old highs as points of interest.

• Traders need to understand whether they are in a premium or discount marketplace within their trading price range.

• The market structure on this four-hour chart is bullish.

One Hour Chart Analysis

• On the one-hour chart, there was a displacement during London session that confirmed bearish market structure.

• Traders need to find 50% equilibrium of that price range.

• Market structure on this one-hour chart is bearish while higher time frame remains bullish.

Conclusion

In this section, the speaker concludes by summarizing key takeaways from his analysis using the Judas swing concept.

Key Takeaways

• Patterns repeat themselves, and traders can use the Judas swing concept to identify fake runs in the opposite direction of where price really intends to go.

• Traders need to understand whether they are in a premium or discount marketplace within their trading price range.

• Market structure can vary across different time frames, and traders need to be aware of these variations.

Bearish Market Structure

The speaker discusses the current bearish market structure on the one-hour chart and how it relates to a four-hour premium. They also note key resistance levels.

One-Hour Chart

• The current market structure on the one-hour chart is bearish.

• Trading above a certain level on the one-hour chart would put you in a one-hour premium.

• Key resistance levels have been marked, including broken lows.

Four-Hour Premium

• Despite the bearish market structure on the one-hour chart, the four-hour chart is still bullish overall.

• Scalpers should be aware of both higher and lower time frames when looking for shorting opportunities.

Judas Swing

The speaker explains what a Judas swing is and when it commonly occurs in trading.

Definition of Judas Swing

• A Judas swing is a fake run higher in the opposing direction of where price really wants to go.

• It involves taking out buy stops and baiting breakout buyers before pulling back.

Common Times for Judas Swings

• Right after midnight (New York time) is a common time for Judas swings.

• 9:30 Equity open is another common time for these types of moves.

Understanding Premium and Discount Marketplaces

In this section, the speaker explains how to capitalize on Judas swings by understanding premium and discount marketplaces. They discuss a recent example of a Judas swing that occurred after midnight in New York and another one that happened right after 9:30 Equity open.

Capitalizing on Judas Swings

• A Judas swing is an opportunity to make money by scalping.

• You can capitalize on it by understanding premium and discount marketplaces, liquidity pools, and market structure.

• Smaller timeframe market structure is bearish while the four-hour timeframe is bullish but still short-term expensive.

• The recent example of a Judas swing occurred after midnight in New York and another one happened right after 9:30 Equity open.

Identifying Premium Marketplaces

• To identify a premium marketplace, look for levels of resistance or support within a price range created during London session.

• It's important to understand whether you are operating within a discount or premium marketplace because it affects your trading strategy.

Trading Short-Term Price Ranges

• If you're a scalper, you can play short-term price ranges like the recent bounce off support. However, be careful about taking any short plays when the price is already traded down below the four-hour timeframe as it's not a high probability play.