Liquidity Sweeps, Stop Hunts & The London Judas Swing: Profiting from Engineered Retail Traps

1. Anatomy of the Judas Swing

During the Asian session (20:00 - 00:00 EST), price forms a tight, consolidation range. Retail stop-loss orders accumulate directly above the Asian High and below the Asian Low.

At the London Open (02:00 - 03:00 EST), European market makers execute the Judas Swing: an aggressive false rally that purges the Asian High liquidity pool, triggering buy-stops before violently reversing into the true daily trend downward.

2. Execution Rules

• 1. Sweep Confirmation: Wait for price to wick above the Asian High and quickly close back below the range on the 5M/15M chart (Liquidity Grab).
• 2. Market Structure Shift (MSS): Enter short when price breaks lower support with a 15M displacement candle.
• 3. Stop Loss: 3–5 pips above the sweep apex wick.
• 4. Take Profit: The opposite side of the range (Asian Session Low) for a 1:4+ RRR return.