ICT Judas Swing Trading Strategy Explained In 12 Minutes..

Summary

In this educational video, Faz introduces the 'ICT Judas Swing' trading strategy, a technique to profit from market movements by identifying fake moves before a significant shift in direction. He outlines the strategy's rules, emphasizing the importance of recognizing 15-minute autoflow to determine the trend, identifying liquidity levels, and timing trades around the 8:30 AM and 9:30 AM New York time opens for Forex and indices respectively. Faz illustrates the strategy with examples from NAS 100 and Euro USD, demonstrating how to spot market structure shifts and fair value gaps for precise entries and exits.

Takeaways

• 📈 The 'ICT Judas Swing' is a trading strategy that capitalizes on a fake move before a move in the original direction.
• 🔍 The strategy involves identifying a 15-minute autoflow to determine the current trend (bullish or bearish).
• 🕒 Timing is crucial; for Forex, sell-side liquidity should be identified before 8:30 AM New York time, and for indices, before 9:30 AM.
• 📊 Autoflow is identified by observing if the price respects bullish or bearish auto blocks and fair value gaps, indicating the direction of the trend.
• 📉 The Judas Swing occurs when the price takes out the sell-side liquidity in a bullish trend or buy-side liquidity in a bearish trend.
• 📝 Traders should look for significant market structures on the 15-minute time frame to identify liquidity levels, avoiding insignificant pullbacks.
• 🚫 Avoid trading when there is consolidation rather than a clear market structure shift, as this can indicate a less reliable entry point.
• 🎯 After identifying liquidity and observing a market structure shift, traders should look for a fair value gap and displacement to enter the trade.
• 💰 The target for the trade is the nearest liquidity level or auto block, aiming for the 'lowest hanging fruit'.
• 📚 The strategy can be backtested for validation and is explained in detail with examples in the video.
• 🌐 The video provides examples using NAS 100 and Euro USD, demonstrating how to apply the strategy in different market conditions.

Q & A

What is the main topic of the video?

The main topic of the video is teaching viewers about the 'ICT Judas Swing' trading strategy and how to use it to make profits in the market.

What is the 'Judas Swing' in trading?

The 'Judas Swing' is a trading term referring to a fake move in the market before a move in the original direction. It involves identifying a market structure shift after the price takes out the opposing side's liquidity.

What are the rules for identifying the 'Judas Swing'?

The rules include identifying a 15-minute autoflow to determine the trend, identifying sell-side liquidity before 8:30 AM New York time for Forex and before 9:30 AM for indices, and looking for a market structure shift with fair value gap and displacement after the liquidity is taken out.

How do you identify an autoflow in the market?

An autoflow is identified by observing if the price continuously respects bullish or bearish auto blocks and fair value gaps, indicating the direction the price wants to move.

Why is the 15-minute time frame important for identifying the autoflow?

The 15-minute time frame is important because it provides a clear indication of the current market trend, which is crucial for determining the direction of the 'Judas Swing'.

What is the significance of the 8:30 AM and 9:30 AM timing for Forex and indices respectively?

These timings are significant because they mark the opening of the trading session for Forex and indices, respectively, and are the times to identify the liquidity levels before the market starts to move.

What should traders avoid when identifying liquidity levels?

Traders should avoid identifying very tiny structures or insignificant pullbacks as liquidity levels, as these do not represent significant market movements.

Why is it important to look at higher time frame liquidity levels?

Looking at higher time frame liquidity levels can provide additional context and validation for the current market bias, helping to confirm whether the market is likely to continue in the same direction.

What is a 'displacement' in the context of the 'Judas Swing'?

A 'displacement' refers to a sudden move in the market, leaving behind a fair value gap. It is a key indicator of a market structure shift, which is part of the 'Judas Swing' trading strategy.

How do traders take their entry after identifying the 'Judas Swing'?

Traders take their entry from the fair value gap that is created after the market structure shift and displacement, targeting the next liquidity level or auto block as their profit target.

What is the importance of a clean market structure shift in the 'Judas Swing' strategy?

A clean market structure shift, characterized by a clear break from the previous pattern without consolidation, is important because it signals a strong and genuine move, increasing the likelihood of a profitable trade.

Can the 'Judas Swing' strategy be applied to different financial instruments?

Yes, the 'Judas Swing' strategy can be applied to different financial instruments such as Forex, indices, and potentially other markets, as long as the conditions for the strategy are met.

How does the speaker suggest traders backtest the 'Judas Swing' strategy?

The speaker suggests traders backtest the 'Judas Swing' strategy by applying it to historical market data to see how it would have performed in the past, which can help validate its effectiveness.