The Judas swing term was named by ICT, he dubbed this swing concept and utilizes it upon the London Open. The idea is, the market makers will rally or sell price, normally just above or below the Asian session high or low (depending on institutional order flow bias) tricking buyers or sellers into the market to follow its direction. As the Judas swing high or low...
Regularly we see price break out after a consolidation, only to suddenly reverse and break out to the other side. Then, we continue swiftly in the direction of the initial breakout creating a "whipsaw" effect. Why is that ?
In simple words, it is the smart money that attracts retail traders by pushing in one direction (mainly breakout traders) and put their stop...