Swing Failure Patterns
Swing Failure Pattern (SFP) in TradingIn the world of price action trading, few concepts are as powerful as the Swing Failure Pattern (SFP). This three-candle formation signals a potential reversal in the market, showing when buyers or sellers are losing control. Popularized by the Inner Circle Trader (ICT) methodology, SFPs are a core tool for spotting market traps and identifying “smart money” activity.What is the Swing Failure Pattern?The Swing Failure Pattern occurs when price tries to continue in its current trend but fails to sustain the move. Essentially, it signals trend exhaustion and highlights potential reversals.There are two main types:Bullish […]