How to Use Swing Failure Pattern (SFP)
Published in
1 min readJan 7, 2020
What is “SFP”?
A Swing Failure Pattern (SFP) is a trade setup in which big traders hunt stop-losses above a key swing high or below a key swing low for the purpose of generating the liquidity needed to push price in the opposite direction.
How to use “SFP”
A swing low is a point on a chart where price forms a regular V-shape (apex at the bottom) before then moving to the upside.
Bullish SFP — when price drops below a key swing low, then closes back above that swing low, which offers opportunities for long trades.
Looking at the chart above, we can find the SFP shows a positive buy sign. BTC price is likely to continue higher towards $7,600 unless it breaks below $7,100 support.
