# Swing Failure Pattern

<mark style="color:$info;">**A Swing Failure Pattern**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">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.</mark>

{% embed url="<https://www.youtube.com/watch?v=nmf3kS87wGA>" %}

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### SFP types

<mark style="color:$info;">**Bullish and Bearish SFP Detection**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">– Spots fakeouts above highs (bearish) and below lows (bullish), where price quickly reverses after taking liquidity.</mark>

<div data-full-width="true"><figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FA5YFLt8fPBnO6NKk0JlV%2Fimage.png?alt=media&#x26;token=d2c9481e-5953-4a5f-b920-86c32b8a5fd7" alt=""><figcaption><p>Bullish SFP</p></figcaption></figure> <figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FKSxQkKPbg9lZvTt4sm7A%2Fimage.png?alt=media&#x26;token=10d7be99-3c13-4e2a-a631-07729130744d" alt=""><figcaption><p>Bearish SFP</p></figcaption></figure></div>

<mark style="color:$info;">Traders can use SFPs to identify potential entry points for trend reversals or liquidity-based trades.</mark>

### Deviation Area

<mark style="color:$info;">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.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FMw7c33k1O69hdlGf7ZUA%2Fimage.png?alt=media&#x26;token=be24a682-cfb4-4a9e-bbf6-c4b1d3d09c82" alt=""><figcaption><p>Deviation Area</p></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">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.</mark>&#x20;
{% endhint %}

<mark style="color:$info;">Traders use deviation areas to set targets, identify overextension, and anticipate reactions at these levels for planning entries or exits.</mark>

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### Settings

<div data-with-frame="true"><figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FvtiSvc9bx8UuMrzJdSCF%2Fimage.png?alt=media&#x26;token=aff5bf90-0397-4f1b-b578-516b944f6df2" alt=""><figcaption><p>Settings</p></figcaption></figure></div>

{% hint style="info" %}

### Settings

1. **Enable SFP:** <mark style="color:$info;">Activates or deactivates the SFP feature. When enabled, it displays SFP patterns on the chart.</mark>
2. **Show Last:**

   <mark style="color:$info;">Defines how many recent SFPs are displayed on the chart. For instance, setting it to</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`5`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">will show the last 5 occurrences.</mark>
3. **Sensitivity:**

   <mark style="color:$info;">Adjusts the responsiveness of the SFP detection in a trend following filter mode. Higher sensitivity identifies more pronounced moves, while lower sensitivity focuses on more subtle swings.</mark>
4. **Length:**

   <mark style="color:$info;">Sets the number of bars considered to determine swing highs or lows. A higher value identifies more significant swings over a longer range.</mark>
5. **Filtering:**

   <mark style="color:$info;">Selects the filtering method for SFP detection:</mark>

   * <mark style="color:$info;">**Trend Filter:**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">Only detects SFPs in alignment with the prevailing trend.</mark>
   * <mark style="color:$info;">**All Patterns:**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">Detects all SFPs regardless of trend direction.</mark>
6. **Threshold:**

   <mark style="color:$info;">Sets the volume threshold for identifying a valid SFP. For instance, a threshold of</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`1`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">indicates. The higher threshold the bigger SFP will be detected.</mark>
7. **Text Size:**

   <mark style="color:$info;">Adjusts the size of the SFP labels on the chart for better visibility:</mark>

   * <mark style="color:$info;">**Small, Medium, Large.**</mark>
8. **Deviation Area:**

   <mark style="color:$info;">Displays zones indicating potential price overextension levels based on the SFP. Settings include:</mark>

   * <mark style="color:$info;">**Level:**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">Displays deviation levels like 200%, 250%, etc.</mark>
   * <mark style="color:$info;">**Fill:**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">Adds shading to the deviation zones for enhanced visibility.</mark>
     {% endhint %}
