Core Concepts & Judas Swing Indicator – FX Replay Guide

The Judas Swing Indicator on FX Replay helps traders identify market manipulations such as false moves around key institutional levels. By integrating this with FX Replay’s bar replay and backtesting tools, traders can practice recognizing and trading these setups effectively.

1. Core Concepts You Should Know

• Judas Swing:
  A false move below or above the Asian range intended to trap retail traders, often reversed sharply in the opposite direction.
• Midnight Open:
  Defined as the 5:00 a.m. NY session open, this point is frequently used by institutions to set the tone for the day’s manipulation.

2. Configure the Indicator for Your Strategy

• Market Mode Selection:
  Choose between trend, range, or neutral market settings to align with your trading conditions.
• TP/SL Options:
  • Dynamic Mode: Adapts risk/reward levels using ATR.
  • Fixed Mode: Lets you define specific R:R ratios.
• Risk Level Adjustment:
  Modify to control the size of potential TP/SL zones if using dynamic settings.
• FVG Sensitivity:
  Adjust to detect cleaner or more subtle Fair Value Gaps (especially useful for confirmation).
• Backtesting Dashboard:
  Use this to review how specific settings have performed historically.

3. How to Identify a Judas Swing with the Indicator

• Step 1: Watch for price to drop below the Asian range low shortly after the Midnight Open.
• Step 2: Price then reverses and breaks above the Asian range high.
• Step 3: Once price clears back above the Midnight Open, the Judas Swing is confirmed.

This move traps shorts and sets up for long entries.

4. Executing the Trade in FX Replay

• Setup Recognition:
  The indicator will highlight Judas Swing scenarios visually.
• Confluence:
  Confirm setups using Order Blocks, Fair Value Gaps, or PO3 concepts for added confidence.
• Entry & Risk Control:
  Use the indicator’s SL/TP zones to size and manage trades directly in FX Replay using the Position Tool.
• Macro Awareness:
  Always factor in high-impact news or overall market structure before executing.