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.

Outlines

00:00

📈 Introduction to the ICT Judah Swing Trading Strategy

Faz introduces a trading strategy known as the ICT Judah swing, which involves identifying a fake move in the market before a move in the original direction. The strategy is based on market liquidity and price action. The first rule is to identify a 15-minute autoflow to determine the current trend (bullish or bearish). Autoflow is identified by observing if the price respects bullish or bearish auto blocks and PDRs (Premium Discount Ranges). The second rule is to identify sell-side liquidity before 8:30 AM New York time for Forex and before 9:30 AM for indices. The trading window for Forex is from 8:30 to 11:30 AM. The video promises to provide exact rules and timings for the strategy.

05:01

🔍 Applying the Judah Swing Strategy with Liquidity and Market Structure

The paragraph explains how to apply the Judah swing strategy by marking out liquidity levels on a 15-minute time frame and looking for significant market structures. It emphasizes avoiding tiny structures and focusing on significant liquidity levels. The strategy involves waiting for a purge of the identified liquidity when the market opens and then looking for a market structure shift with a fair value gap and displacement on a lower time frame. The entry is taken from the fair value gap, targeting the next liquidity level or auto block. The paragraph provides an example using NAS 100 index, illustrating the process of identifying the autoflow, marking out liquidity, and executing the trade after observing a clean market structure shift.

10:03

🚀 Execution of the Judah Swing Strategy with Forex Example

This paragraph demonstrates the application of the Judah swing strategy using a Forex example, specifically with the Euro USD currency pair. It explains the process of identifying the 8:30 AM open and looking for a market structure shift after news has taken out liquidity. The strategy involves dropping down to a one-minute time frame to find a clean displacement and market structure shift, taking entries from the fair value gap created by the shift, and setting targets based on the previous liquidity levels. The example concludes with a successful trade that hits the take profit level, showcasing the precision of the strategy.

Keywords

💡ICT

ICT stands for Information and Communication Technology. In the context of the video, it seems to be used as an abbreviation for a trading strategy or concept, although it's not explicitly defined. It's likely a specific term within the trading community that the speaker is referencing.

💡Judas Swing

The term 'Judas Swing' in the video refers to a trading strategy where a fake move in one direction is followed by a move in the original direction. It's a concept used to identify potential trading opportunities based on market movements and liquidity changes.

💡Autoflow

Autoflow, as mentioned in the script, is a term used to identify the prevailing trend in the market, whether it is bullish or bearish. It's crucial for the 'Judas Swing' strategy as it helps traders to understand the market's direction before looking for specific trading signals.

💡Liquidity

Liquidity in the context of trading refers to the ability to buy or sell an asset quickly without affecting its price. In the video, the speaker talks about identifying 'buy side' and 'sell side' liquidity levels, which are critical for the 'Judas Swing' strategy as they represent potential areas of price support or resistance.

💡Fair Value Gaps

Fair Value Gaps are price gaps that occur in the market, which are considered to be 'fair' or expected based on the underlying value of the asset. In the video, the speaker uses these gaps to identify potential entry and exit points for trades, particularly after a 'Judas Swing' has occurred.

💡Market Structure Shift

A market structure shift refers to a change in the pattern of price movement, indicating a potential change in trend direction. In the video, the speaker mentions looking for a market structure shift after a liquidity purge as a signal to enter a trade.

💡Displacement

Displacement in trading is a sudden and significant price movement away from a previously established level. The speaker in the video uses the term to describe a key moment when the price moves sharply, leaving behind a fair value gap, which is then used as an entry point for a trade.

💡PD Errors

PD Errors, or Premium Discount Errors, are a concept used to identify the difference between the market price and the fair value of an asset. In the video, the speaker mentions that if the price respects bullish PD errors, it indicates a bullish bias in the market.

💡Auto Blocks

Auto Blocks are likely a specific type of price level or zone identified by the speaker's trading methodology. They are mentioned in the context of the price respecting these levels, which helps in identifying the prevailing market trend.

💡Trading Window

The trading window in the video refers to a specific time period during which the 'Judas Swing' strategy is applied. For Forex, it's from 8:30 AM to 11:30 AM New York time, and for indices, it's before 9:30 AM. This window is important for identifying and acting on trading signals.

💡Entry Zone

The entry zone is the price area where a trader decides to enter a trade. In the video, the speaker describes how to identify the entry zone after a liquidity sweep and a market structure shift, using the fair value gap as a reference point for entry.

Highlights

Introduction to the ICT Judas Swing trading strategy

Judas Swing is a fake move before a move to the original direction

Identifying 15-minute autoflow to determine bullish or bearish trends

Respecting bullish auto blocks and fair value gaps indicates a higher price direction

Using Judas Swing with autoflow by identifying sell-side liquidity when the bias is bullish

Timing is crucial: identify sell-side liquidity before 8:30 AM New York time for Forex and before 9:30 AM for indices

The trading window for Forex is from 8:30 AM to 11:30 AM New York time

Avoid tiny structures and focus on significant liquidity levels on the 15-minute time frame

Checking higher time frame liquidity levels for validity before trading

Looking for a purge of liquidity after the 8:30 AM open as a trading signal

Dropping to a lower time frame to look for a market structure shift with fair value gap and displacement

Taking entry from the fair value gap and targeting the lowest hanging fruit

Example of a NAS 100 trade using the 9:30 AM open and identifying sell-side liquidity

Importance of a clean market structure shift for a valid trade setup

Another example of trading Euro USD, identifying buy-side liquidity with a bearish autoflow

Using news as a catalyst to take out liquidity and look for a market structure shift

Achieving precision in trading by targeting specific levels after a displacement

Encouragement to backtest the strategy and join the community for further learning

Transcripts

hey guys what is up Faz here in this

video I will teach you about the ICT

Judas swing how you can trade it and

make profits you guys might like

everyday new single trading strategy the

thing is guys I'm teaching you each and

every single concept that I know ICD

Concepts okay and most of the strategies

on this channel are not different

strategies they are just a different

variation of each strategy okay so

without further Ado let's get on with

the video so what is a Judah swing so

Judas swing is a fake move before a move

to the original Direction so let's

assume that you have buy site and sell

side liquidity resting so price takes

out South Side liquidity that is a

Judith swing and then you get a market

structure shift you take your entity

Target the buy side liquidity the

original Direction because

uh our narrative our bias was bullish

Okay so

here are the rules that you can use I'm

going to give you the exact rules and

exact timings okay so number one is

identify

15 minutes autoflow so what is an auto

flow it's basically a trend are we in a

bullish Trend or are we in a bearish

trend so how do we identify a autoflow

so if the price is continuously

respecting bullish Auto blocks and

bullish fair value gaps then that means

that the price is respecting the bullish

Auto blocks in favority gaps which are

called PD airs premium discount errors

and that gives us a sign that price

wanna keep on heading

uh higher okay because it is respecting

the bullish Auto blocks and favority

gaps and similarly if we have price

respecting uh bearish Auto blocks and

bearish fair value gaps then that means

that the price want to keep on going

lower

so how do we use Judah string with this

so number one rule is identify 15

minutes autofload so let's say if the

auto flow is bullish okay let's see if

the autoflow is bullish number two is

then we

identify

uh sell side liquidity before

8 30 am New York time for Forex and

before

9 30 am

for indices

okay so here's the thing our uh midnight

open is at 12 am

right and then you have

so I'm going to give you the example for

Forex okay so at let's say 8 30 right

here

I'm just giving you okay perfect like

that so this is the midnight open this

is the 8 30 open right

8 30.

so uh we identify South Side liquidity

when the autoflow is bullish when our

bias is bullish okay and if our bias was

bearish we would identify buy side

liquidity before 8 30. I'm giving you

the example for Forex okay for indices

you would look for liquidity before 9 30

okay

so at so this is yeah you know like uh

the midnight open then we have the 8 30

open for Forex and our trading window is

still

11 30 okay so we only have a trading

window period uh from 8 30 till 11 30

for Forex Okay so

uh trading window period

is from 8 30.

till 11 30

am New York time

okay so this is the only time that we

can trade in this video window period

okay so here's the thing let's say that

we have been bullish right we have been

respecting PD errors and all and now

what we do have is a 8 30 open here we

know that we are bullish right so you

want to Mark out liquidity levels a

structure uh you know a it could be a

significant look it could be equal highs

it could be just a uh you know like a a

minor structure I wouldn't say so what

is a what is the structure that you

should not look for uh when to identify

liquidity right so this is liquidity but

if you have something like very tiny

structure like that uh it's best to

avoid this okay a very little pullback a

very little uh small low then that isn't

a significant liquidity level and we

must be looking at the liquidy levels on

15 minute time frame okay so let's

assume that this is the uh this is the

prime like liquidity example this is

like a significant low here so uh

primarily we want to look for cell side

Purge of cell side liquidity after 8 30

because our

um narrative is bullish and one more tip

that I would like to do so let's say

you're looking at 15 minutes right if

you go to the four hour time frame you

might notice that we might have like a

structure uh a higher time frame

liquidity level so

if this level is still valid if this if

the price has not taken out this four

hour time frame a higher time frame

liquidy level we can expect to be

bullish okay let's say if price took out

this liquidity here then you can expect

lower prices or a shift in Market

structure we could be shifting from

bullish Trend to a bearish trend this is

how I use this thing okay so

then when we have liquidity marked out

after 8 30 we look for a purge of that

liquidity so once the liquidity is taken

out we drop down to one minute or two

minutes or three minute time frame okay

and we look for a marker structure shift

with fair value Gap and displacement

displacement is very important you see a

sudden move to the upside leaving behind

fair value Gap and then what you simply

do is you take your entry from the

farewell Gap and you target the lowest

hanging fruit so there could be a fairly

Gap here right there could be a auto

block here and you want to just Target

that or you can take some partials at

these levels and you target this next

level liquidity level

okay so most of the time what's gonna

happen probably it's going to tap into

your uh entry Zone and it's gonna maybe

reverse from here give you or maybe give

you a pullback

then hit this level and then take out

this liquidity and prime it could

actually just go ahead and take out this

liquidity here as well

so this is the strategy guys

um

it's really that simple you just want to

you know after like

um after liquidy

uh sweep look

foreign

and take your entry

it's really that simple so I'm gonna

give you guys a couple of examples and

then I will end the video alright guys

so here is the example number one I'm

looking at NAS 100 and I will be using

the 930 open because we're looking at

indices so you can see that the autoflow

has been bullish so far and we would be

looking for a Purge on the sell side

okay so this is the let me

annotate it so this right here

is basically the 930 open and we have

these equal lows here now so that is

perfect so we wait for price to take out

the low here which happens right there

perfect then we drop down to one minute

and we look for a clean Market structure

shift

this right here was not

a clean Market structure because we have

consolidation and then we have a push up

so that is not perfect we've won

displacement right so as a Trader you

must know that this is is not a clean

Market structure shift okay and any

Trader would notice this I'm not just

saying this for the sake of this video

you can see this is consolidation if

primarily I want to see like three to

four bullish candles break the structure

which is displacement right

so

we wait we have

so this is what I'm talking about

do you see this right this bullish move

it's like a displacement right so now we

have family Gap right here

and if we take my entry from here put my

stop right there Target

I don't know one to two let's go for one

to two here

and we are targeting basically this High

here so let's see how this plays out

and as you can see the take profit was

hit we took out the buy side here and

that was a perfect trade we respected

this auto block here with respect to

this variable you get up here we took

out these equal lows here right we had a

uh you could say a liquidity sweep here

as well but then this displacement was

not you know like uh this was just

consolidation here and then we had this

push up here so basically that became a

liquidity level as well uh because this

was consolidation so we had a you know a

accumulation manipulation and

distribution here but then our high time

frame was like accumulation manipulation

and then distribution so let me give you

guys another example all right guys so

I'm looking at Euro USD on 15 minutes

time frame you can see that the autoflow

has been bearish for the last I don't

know two days or so and we want to look

for a Purge on the buy side liquidity so

we Mark out buy a side here buy side

here as well

uh we do have this basically this is the

liquidity level right here

so

my God my bad right there

we have these like equal highs and like

um you know what I'm saying so we are at

8 15 I'm looking at Forex now so we're

gonna use the 830 open and as you can

see right off the bat it was news here

but news took out liquidity here as well

um

so when you have a bicycle you can drop

down to like one minute time frame now

and look for a market structure shift

and let's see where do we get it

okay perfect so we have higher high

higher low higher high and then we have

this beautiful displacement right there

and we have a market structure shift

leaving behind this fair value Gap here

right and this is for every Gap here as

well

we would take our entry from The Fairly

Gap there put our stop right at the high

here we can Target maybe this high or

actually I would Target sorry this low

or we can Target this low here or

primarily you can see that this family

Gap is filled as well so this is the low

that we can look for

because after that this is like big

family Gap or inefficiency whatever you

want to call it and so let's see what

happens we get our entry at 9 14 and

let's see what happens

and we hit our take profit level quite

nicely

so basically uh

this is how you trade the Judah swing we

have a move up right uh we had a news we

took out all the bioside liquidity that

I marked out and you can see we had this

clean displacement here leaving behind

this extreme fair value Gap we tapped

into it look at the Precision here and

then we dropped down below so

yeah guys uh this was the whole strategy

you can go ahead and back test it

and um

yeah I hope you guys did enjoy this

video if you would like to learn more

you can join the community and you can

join the

course or mentorship whatever you want

to call it

but it is not necessary

um

yeah I'll see you guys in the next video

goodbye