Smart money concepts · Advanced

Judas Swings And False Breakouts

A 1-minute lesson from the MarketPro academy, one of 22 in smart money concepts.

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Short answer

A Judas swing is a false initial move at the start of a session or trading period that reverses shortly after, often catching breakout traders on the wrong side before the "real" directional move begins. The pattern typically appears around a session open, such as the early hours of a major market, when price pushes in one direction, triggers breakout entries and nearby stop orders, and then sharply reverses.

A Judas swing is a false initial move at the start of a session or trading period that reverses shortly after, often catching breakout traders on the wrong side before the "real" directional move begins.

Recognizing The Pattern

The pattern typically appears around a session open, such as the early hours of a major market, when price pushes in one direction, triggers breakout entries and nearby stop orders, and then sharply reverses. The initial push is the "false" move; the reversal is treated as the more meaningful direction for that session.

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