Apprentice Level
Adept Level
Expert Level
Master Level

3.4 Swing Failure Pattern and Liquidity

Sorry, you don't have access to this content. Upgrade your subscription to get access.

Apprentice Level

Swing Failure Patterns (SFP) occur when price action attempts to swing above or below a price area of significance, but fails to do so and can either reverse the trend or provide a setup to trade a bounce with a good risk to reward ratio.
SFPs are also referred to as; Stop hunts and liquidity grabs.
SFPs can be found on all time frames (TF). However, the higher the TF the more significant an SFP can be.
SFPs are not guaranteed to reverse a trend entirely and may only result in a 'dead cat bounce'. Thus, one cannot trade off these alone and must have other factors of confluence to trade from.