Swing Failure Pattern as a trading confluence or strategy.
A Swing Failure Pattern (SFP) is a trade setup in which whales hunt stop-losses above a key swing high or below a key swing low for the purpose of generating the liquidity and taking out stop-losses.
This pattern also works by observing the consecutive low/high to have not created a lower low or higher high before reversing.
Look for key swing points (/\ or \/) on a chart, swing high/lows that stand out instantly.
When price breaks these points, two things will happen:
Stops will get triggered
Breakout traders will be baited
This will create the large liquidity required.
This pattern also works by observing the consecutive low/high to have not created a lower low or higher high before reversing.
Look for key swing points (/\ or \/) on a chart, swing high/lows that stand out instantly.
When price breaks these points, two things will happen:
Stops will get triggered
Breakout traders will be baited
This will create the large liquidity required.