Gold Setup Masterclass — Judas Swing & Supply Zone Stop Hunt

✦ Your Observation — You Already Know This Instinctively You noticed that after a big move up, a small green candle + 1–2 red candles forms. You don't enter the short immediately there — you wait for price to push back up into that small green candle zone (the supply OB), or go even higher and break the previous high. Once it starts falling from there, you enter the short. That is exactly the Supply Zone Stop Hunt. You're reading the market correctly — this document gives you the precise rules to turn that instinct into a system.

⭐⭐⭐ A+ Setup · Primary Gold Pattern

The Judas Swing

Also called: London Trap · Asian Range Sweep · AMD Reversal · Power of 3

What Is This Setup

The Judas Swing is gold's most reliable daily pattern. It happens 60–70% of all trading days during the London session open. The name comes from the biblical betrayal — the market leads you one direction, then stabs you in the back.

Here's what actually happens: During the Asian session, gold builds a tight consolidation range. Retail traders see this range and place their stops just outside it — bulls put stops below the range, bears put stops above it. Banks and algorithms know exactly where those stops sit. So at London open, they push price aggressively through one side of the range to trigger those stops, collect the liquidity, and then reverse hard in the opposite direction for the rest of the day.

The fake move is called the Judas Swing. The real move is the reversal that follows. Your job is to never be tricked by the fake, and to enter on the reversal after the trap is confirmed.

Session Timing — IST and New York

Phase 1 · Mark Levels

7:00 PM – 7:30 PM IST

= 1:30 AM – 2:00 AM ET

Sit down, open chart, mark the Asian session high and low. This is the range that will be swept. Do nothing else. Just mark it.

⭐ Phase 2 · Watch for Sweep

7:30 PM – 9:30 PM IST

= 2:00 AM – 4:00 AM ET

London killzone. This is when the Judas Swing happens. Watch for price to break one side of the Asian range. Do NOT enter yet. Watch.

⭐ Phase 3 · Entry Window

7:45 PM – 10:00 PM IST

= 2:15 AM – 4:30 AM ET

After sweep confirmation + reversal candle. Entry happens here. This is when you actually press the button.

Chart 1 — Full Judas Swing (15M View)

XAUUSD 15-Minute Chart · London Open Sequence Each candle = 15 minutes

Chart 2 — The 1M Entry Drill Down (After Judas Confirms)

XAUUSD 1-Minute Chart · Entry Precision After Sweep Confirms What you look for on 1M once the 15M sweep is confirmed

Step-by-Step Execution — Every Judas Swing Trade

1

Mark the Asian Range (7:00–7:30 PM IST)

Open the 15M chart. Find the highest wick and lowest wick of the Asian session (roughly 1:30 AM – 7:30 AM IST / 8 PM – 2 AM ET). Draw a horizontal line at the Asian High and another at the Asian Low. Label them clearly. This range is your battlefield. Everything that happens in the next 2 hours will reference these two lines.
2

Watch for the Sweep — Do NOT Enter (7:30–8:30 PM IST)

At 7:30 PM IST (London open), gold will often push aggressively above the Asian High or below the Asian Low. Do NOT enter. This could be the Judas Swing or a genuine breakout. You don't know yet. Watch the 15M candle. The key is: does it close back inside the Asian range, or does it close outside? If it closes outside → it may be a real breakout. Wait. If the candle pushes above but then closes back inside → that is your confirmation the sweep was fake. Now you can act.
3

Confirm the Reversal — Look for Displacement on 5M

After the sweep candle closes back inside the range, drop to the 5M chart. You're looking for a large, strong displacement candle moving back into the range (if sweep was above Asian High, this will be a big red candle; if below Asian Low, a big green candle). This displacement candle creates a Fair Value Gap (FVG) — a gap between candle 1's low and candle 3's high on 5M. That FVG is your entry zone. Also look for a Change of Character (CHOCH) on 1M — the first time price breaks below a previous 1M high during the downmove (for a short setup). CHOCH = structure has officially shifted.
4

Entry — Limit Order into the FVG / Order Block (1M)

Drop to the 1M chart. After the displacement, price will often retrace back up into the FVG or back to the small Order Block (the last green candle before the big red displacement). Place a limit sell order at the 50% level of the FVG (the midpoint), or at the body of the last green candle before the displacement. You don't need to click manually — set a limit order and let price come to you. If price doesn't retrace and just continues falling, you missed this one. Do not chase.
5

Stop Loss — Above the Judas Wick High (+ buffer)

Stop goes 2–3 pips above the highest wick of the Judas Swing. This is the extreme that price used to sweep liquidity. If your thesis is correct, price will never go back there. If it does — your setup is invalid and you must exit. Never put the stop at the Asian High itself — that's where everyone else puts it, and gold will sweep that level too. Go 2–3 pips higher, beyond all the wicks.
6

Targets and Pyramid

Target 1: Asian Range Low (opposite side of where the sweep happened). This is typically a 150–400 pip move. Close 50% here. Move stop to breakeven. Target 2: Previous session low or next major demand zone below on 1H chart. Let the remaining 50% run. Add pyramid position (0.5× base lot) when price has moved $2–3 in your favour after T1 is secured and stop moved to BE.

Invalidation — When the Setup Fails

❌ Judas Swing Invalidation Conditions

✕ Sweep candle closes outside the range and holds above/below for 2+ candles. This is not a Judas — it is a genuine breakout. Exit any positions immediately.

✕ Price returns to the Judas wick high and closes above it. The stop should have taken you out already. If it didn't, exit manually.

✕ High-impact news within 30 minutes of your entry. CPI, NFP, or FOMC changes everything. Check the calendar before London open. If news is within 30 min, skip the setup entirely.

✕ Asian range was too wide (>$5 range). If Asia had a very large range, the sweep target is unclear. Skip this setup on those days — the sweep math doesn't work cleanly.

✓ The Setup Works When

Asian range is clear and clean ($2–4 wide). Sweep happens within first 30 minutes of London open. The sweep candle has a long wick above/below with a close back inside the range. 1M CHOCH confirms shortly after.

✕ Skip the Setup When

High-impact news within 30 min. Asian range was very narrow (<$1) — too little to trade. Sweep happened but no displacement followed (no FVG formed). Price just slowly drifted out of range.

ℹ Entry Checklist

15M: Asian range marked ✓
15M: Sweep + close back inside ✓
5M: Displacement candle + FVG ✓
1M: CHOCH confirmed ✓
1M: Retrace into FVG/OB ✓
→ Then and only then: enter.

⭐ Highest Probability Version

Judas Swing that sweeps a previous Day's High or Low (not just the Asian range) — this has double the stop-hunt liquidity and creates a larger, cleaner reversal. Watch for these especially on Monday London opens.

⭐⭐⭐ A+ Setup · Your Natural Instinct Formalized

The Supply Zone Stop Hunt

Also called: OB Stop Hunt · Equal Highs Sweep · Inducement Break · Liquidity Raid

What Is This Setup — And Why Your Instinct Is Correct

You described it perfectly: price goes up high, then creates a small pullback — a small green candle followed by 1–2 red candles. That pullback forms a micro supply zone (Order Block). You wait. Price comes back up to that supply zone, or it breaks slightly above it. Once it starts to fall from there, you enter short.

Here is the institutional logic behind what you're seeing: The small green candle before the big red candles is the last-buy Order Block. That is where institutional sellers placed their orders. When price returns to that zone, it's re-entering institutional supply. Banks are waiting there to short again. The wicks above the zone exist specifically to sweep retail long stops that were placed just above the recent high — once those stops are collected, there are no more buyers, and price drops aggressively.

The two entry variations you described are both valid and have different risk/reward profiles: (1) Enter short when price touches the supply zone body without breaking above — tighter stop, slightly lower win rate. (2) Wait for price to break above the zone briefly (stop hunt), close back below it, and enter short — wider stop, higher win rate. The second is more reliable.

Session Timing — IST and New York

⭐⭐⭐ Prime Window

1:30 AM – 5:30 AM IST

= 8:00 PM – 12:00 AM ET

London-NY overlap. Tightest spreads on Exness. Institutional order flow at peak. Supply zone setups work beautifully here. Silver Bullet at 3:30 AM IST is inside this window.

⭐⭐ Good Window

7:30 PM – 10:00 PM IST

= 2:00 AM – 4:30 AM ET

London session. Supply zones from prior NY session get retested here. Good for stop hunt setups where the zone was built the previous day.

⚠ Avoid

All Asian hours

Choppy, no conviction

Supply zone setups during Asian session produce too many false signals. The moves are too small and the spread cost eats your edge. Wait for London or NY overlap.

Chart 3 — How the Supply Zone (Order Block) Forms

XAUUSD 5M Chart · Supply Zone Formation — What You're Identifying The small green candle before the red candles IS the Order Block

Chart 4 — Your Two Entry Variations Side by Side

Entry Variation A (OB Touch) vs Entry Variation B (Stop Hunt) Both valid · B has higher win rate but wider stop

Step-by-Step Execution — Every Supply Zone Stop Hunt Trade

1

Find the Supply Zone on 5M or 15M

Look for a Rally-Base-Drop pattern. There was a move up, then a small consolidation or a single candle pause, then a sharp drop. The pause is your Order Block. Specifically: identify the last green/bullish candle before the large red drop. Draw a zone around its body (open to close). This is your supply zone. The zone is "fresh" if price has not returned to it yet. Fresh zones are always the highest quality.
2

Mark the Zone's Top and Bottom Clearly

Draw two lines: the top of the OB body and the bottom of the OB body. The bottom of the zone is your entry for Variation A. The top of the zone plus 3–5 pips is where the stop hunt will likely go to. Also mark the high of the candle wick that immediately preceded the drop — this is the liquidity level that the stop hunt will target on the second visit. Most retail traders placed their stops just above that wick high, which is why price goes there first before reversing.
3

Wait for Price to Return to the Zone During London or NY Overlap

Do nothing until the correct session is active (7:30 PM IST for London, 1:30 AM IST for NY overlap). Watch price approach the zone. The approach should look like a controlled pullback — small-bodied candles, not another aggressive impulse. If price is charging upward aggressively toward the zone, wait — that momentum may carry it right through the zone. You want a gentle, indecisive pullback that touches the zone.
4a

Variation A — Enter at OB Bottom (No Stop Hunt)

When to use: When the zone sits at a major confluence (HTF demand-supply flip, Fibonacci 61.8%, previous week high/low). Place a limit short order at the bottom of the supply zone body. Stop: 3–5 pips above the zone's top (the highest wick of the order block). This works because the zone represents institutional supply — when price returns, sellers are there waiting. Risk: lower win rate (~50–55%) because no stop hunt confirmation. Only use for very strong zones.
4b

Variation B — Wait for Stop Hunt Then Enter Short (Recommended)

This is the setup you naturally described. Price enters the supply zone, pushes slightly above the zone top by 5–20 pips (the stop hunt — sweeping retail long stops). Then watch the next 1M candle. If it closes back below the zone top, the stop hunt is confirmed. Place a market short order on the close of that 1M candle, or a limit order at the zone top (where price is now). Stop: 3–5 pips above the stop hunt wick high (the extreme). Win rate: ~60–70% on fresh zones during primary sessions.
5

Stop Loss — Always Behind the Sweep Extreme

For Variation A: stop is 5–8 pips above zone top. For Variation B: stop is 3–5 pips above the stop hunt wick. The key reasoning: if price closes above the stop hunt level and holds there for 2 candles, the zone has been broken and is no longer supply — it has flipped to demand. Do not move your stop wider to "give it more room." If the zone fails, the trade was wrong — get out clean.
6

Targets, Partial Close, and Pyramid

Target 1 (50% close): Next significant demand zone below on 5M or the 1:1.5 R/R level. Move stop to breakeven after closing T1. Target 2 (remaining 50%): Next 1H demand zone, previous day's low, or 1:2.5 R/R level. For pyramiding: add 0.5× base lot only after T1 is secured and stop is at breakeven. Never add before that.

What to Check on Higher Timeframes Before Entering

15M (context frame): Is the overall 15M trend bearish (lower highs, lower lows)? If yes, your short from the supply zone has trend alignment — full position. If 15M is ranging, reduce size to 75%. If 15M is bullish (making new highs), skip the setup entirely — shorting into an uptrend from a 5M supply zone is fighting the tide.

1H (higher context): Is there a 1H supply zone or order block nearby above your 5M entry? If yes, it adds massive confluence. Is there a 1H demand zone just below — where your T1 should be? Identify it before entering — you want to close 50% at that 1H demand zone, not run into it open-eyed.

4H (bias): A quick glance. Is the 4H structure bearish? If yes, today is a selling day and your supply zone shorts are aligned with the dominant order flow. Aligned setups with 4H trend get full pyramid treatment. Counter-trend setups (shorting when 4H is bullish) get Variation A only with tight stops and T1 target only — no runners.

The Two Setups — Side by Side Comparison

Element	Judas Swing	Supply Zone Stop Hunt
Session (IST)	7:30–9:30 PM (London open)	7:30 PM–10 PM + 1:30–5:30 AM
Setup frequency	1 per day (when it sets up)	1–3 per session
Win rate (estimate)	55–65% (self-reported, community consensus)	Var A: ~50%, Var B: 60–70%
Risk:Reward	1:2 to 1:4 (large range targets)	1:1.5 to 1:3
Stop size	Wider ($2–5 beyond Judas wick)	Tighter ($1–2.50 for Var B)
Entry method	Limit at FVG / 1M OB after reversal	Limit at OB bottom (A) or market at stop hunt close (B)
Pyramid suitability	Full 3-step pyramid (large moves)	Add 1 only (tighter structure)
Best context	Clear Asian range + strong directional day	Fresh OB + trend aligned on 15M+
Timeframe to mark	15M (Asian range) → 5M (FVG) → 1M (entry)	5M (OB) → 1M (entry signal)
What kills it	News within 30 min, sweep that holds outside range	Zone broken by candle body close above it

The A++ Combination — Both Setups Aligning

The highest probability trade of your day occurs when both setups align at the same level. This happens more often than you might expect:

Scenario: Asian session created a range. There is also a 5M supply zone from the previous NY session sitting just above the Asian High. At London open, price does the Judas Swing — breaking above the Asian High and entering that pre-existing supply zone. It sweeps both the Asian High liquidity AND the supply zone's prior highs in one move, then violently reverses.

This is the Judas + OB confluence. When you see this, you use full position sizing and all three pyramid adds. The reversal is almost always sharp, clean, and fast — because two layers of institutional selling are triggered simultaneously. The FVG formed by the reversal gives you the precise 1M entry. Stop goes above the combined wick. Target goes to the Asian Low and beyond.

On these trades: size up to 2× your normal base lot (maximum 2% risk), run all 3 pyramid adds, and hold for the full day session target.

❌ The 5 Mistakes That Destroy These Setups

✕ Entering before the sweep is confirmed. You see the zone, price is approaching, you enter early "to get a better price." Then price sweeps your stop, reverses, and runs without you. Always wait for confirmation.

✕ Using a zone that has already been tested multiple times. A supply zone that has been touched 3+ times is weakened — each touch uses up the resting sell orders. Fresh zones (first return) carry the highest probability.

✕ Shorting supply zones when the 4H trend is strongly bullish. Counter-trend trades from supply zones fail more than they succeed in a strong uptrend. Check 4H structure first.

✕ Not moving the stop to breakeven after T1. After T1 hits, you are trading the house's money. Move stop to entry (or entry + spread). If price reverses and you give back all profits, that is a choice, not a market accident.

✕ Holding through news inside a live trade. CPI drops in 5 minutes and you have an open short. Close it immediately. Re-enter after the volatility settles if the setup is still valid. The $8 profit you protect beats the $40 whipsaw loss you risk.

Two Setups.One Edge.

Two Setups.
One Edge.