What is a SFP? A Swing Failure Pattern (SFP) is a trade setup in which big traders hunt stop-losses above a key swing high or below a key swing low for the purpose of generating the liquidity needed to push price in the opposite direction.
How do you determine swing pattern failure?
The failure swing pattern is a type of reversal pattern that can be used as buy or sell signals. In an uptrend, we see a series of successive higher highs and higher lows but there comes a point when the price fails to make a new high.
In a downtrend, prices fail to make a new low. This will make us aware that there could be a change in pattern.
๐จ = Failure Swing Top
๐ = Failure Swing Bottom
Ex)
The signal is more reliable when SPF ๐/๐ฅ and "Weather indicator" ๐/โก show up together and indicates the same direction than a single signal appears.