Swing Failure pattern
Last updated
Last updated
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.
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 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.
Enable SFP:
Activates or deactivates the SFP feature. When enabled, it displays SFP patterns on the chart.
Show Last:
Defines how many recent SFPs are displayed on the chart. For instance, setting it to 5
will show the last 5 occurrences.
Sensitivity:
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.
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.
Threshold:
Sets the volume threshold for identifying a valid SFP. For instance, a threshold of 1
indicates. The higher threshold the bigger SFP will be detected.
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:
Level: Displays deviation levels like 200%, 250%, etc.
Fill: Adds shading to the deviation zones for enhanced visibility.
These customization options allow traders to fine-tune SFP detection to suit their trading style and strategy, providing precise identification of liquidity-driven market reversals.