Judas swing in gold trading
A Judas swing is the false move at a session open, often the London open on gold, that sweeps one side of the overnight range before the true direction emerges.
Also called False move, Opening fake, Manipulation leg
A Judas swing is ICT’s name for the manipulation phase of the power of three at a session open: a move in one direction that sweeps the liquidity on that side and then reverses, betraying the traders who followed it. On a day that eventually closes higher, the Judas swing is the early push lower that takes the overnight low; on a day that closes lower, it is the early push higher. The name reflects that the first move of the session is the one that misleads.
How it applies to gold trading
The London open is the classic Judas swing on gold. The Asian session builds a range; in the first hour of London, price breaks one side, triggers stops and breakout entries, and then reverses to spend the rest of the morning traveling to the other side of the range and beyond. The New York open produces a smaller version against the London range. A trader with a bullish daily bias waits for the push below the Asian low, then looks for a 5-minute CHoCH and an entry in the resulting FVG, with a stop below the swing low.
The swing is identified in hindsight and anticipated in advance; it is not confirmed until structure shifts back.
A common mistake
Entering against the first move before the reversal is confirmed. Some opening moves are the real move, particularly when a data release or a strong higher-timeframe trend drives them.
See also: Power of three (AMD), Asian range, London open, CHoCH.
Frequently asked questions
When does the Judas swing happen on gold?
Most often in the first hour after the London open (around 2–3 a.m. New York time, 7–8 a.m. London time) and, to a lesser extent, in the first half hour of the New York session.
How do I confirm a Judas swing?
Wait for the opening move to sweep a clear level, then for a lower-timeframe change of character back in the opposite direction. The entry is the pullback after that shift.