Swing Failure Pattern
A Swing Failure Pattern occurs when the price attempts to break a significant high or low but fails to sustain above or below that level. This pattern often results in a reversal as liquidity is grabbed and the price moves in the opposite direction.
SFP types
Bullish and Bearish SFP Detection – Spots fakeouts above highs (bearish) and below lows (bullish), where price quickly reverses after taking liquidity.
Traders can use SFPs to identify potential entry points for trend reversals or liquidity-based trades.
Deviation Area
Deviation areas highlight significant price levels where the price deviates or extends beyond normal ranges, typically measured as a percentage of a reference point, such as a recent swing high or low.
These areas, marked by specific percentage levels like 200%, 250%, or 400%, indicate potential zones where the price might either reverse or show a continuation of momentum.
Traders use deviation areas to set targets, identify overextension, and anticipate reactions at these levels for planning entries or exits.
Settings
Enable SFP
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Bearish/Bullish Color
Activates or deactivates the SFP feature.
Defines how many recent SFPs are displayed on the chart.
Adjust bullish and bearish SFP colors
Length
Sets the number of bars considered to determine swing highs or lows. A higher value identifies more significant swings over a longer range.
Filtering
Selects the filtering method for SFP detection:
Trend Filter: Only detects SFPs in alignment with the prevailing trend.
All Patterns: Detects all SFPs regardless of trend direction
Sets the number of bars considered to determine the trend
Threshold
Sets the volume threshold for identifying a valid SFP
Text Size
Adjusts the size of the SFP labels on the chart for better visibility (Small, Medium, Large)
Deviation Area
Displays zones indicating potential price overextension levels based on the SFP. Settings include:
Set the deviation levels style (solid, dashed) and color
Level: Displays deviation levels like 200%, 250%, etc.
Fill: Adds shading to the deviation zones for enhanced visibility.
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