Swing Failure Pattern (SFP): The Market Reversal Signal You Need to Know 🔍

Swing Failure Pattern (SFP) has emerged as quite a powerful chart formation for spotting potential market reversals in crypto's wild 2025 landscape 🚀. Traders need something solid these days. This pattern keeps delivering.

What's an SFP? It's when price briefly pokes beyond a previous swing high or low but can't keep going 📈. It fakes out. Then it turns around.

For a legit SFP, keep these things in mind:

  • Price needs to sweep past the previous high/low 🔑
  • Bullish SFP? Candle should close above previous low
  • Bearish SFP? Candle closes below previous high
  • Just the wick extends beyond. Not the whole candle body. 🚫

Seems like recent testing shows these strategies hitting about 65% win rates when done right. Pretty decent. False breakouts are everywhere nowadays, so this helps a lot 🔥.

The cool thing? SFPs work on different timeframes. Daily charts. Hourly charts. Whatever. When Bitcoin dipped under $120,000 that one time and shot back up? Classic bullish SFP. Then came the rally 🌕.

Lots of traders use TradingView scripts to find these patterns. Makes sense. It's kind of surprising how well they work when combined with other indicators. Not so great alone though.

Crypto or stocks - doesn't matter. Getting this pattern gives you an edge. You might spot reversals before the crowd does 💡. No guarantees though. Position sizing still matters.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)