What Is the Swing Failure Pattern and How to Use It in Trading? | CoinMarketCap

This week on Technical Insights, CoinMarketCap Alexandria (CMCAlexandria) discusses the concept of Swing Failure Pattern (SFP), one of the most popular technical indicators used in trading. Read more!👇 Author: CryptoJelleNL Editor: YousraAASheikh

My favorite confluence lies in support and resistance. When you find the price grinding into resistance and a bearish SFP gets visible, you have multiple factors pointing in the same downwards direction. I generally enter the trade after the SFP candle closes, but do not place the stop right away.

As we discussed, SFPs can be followed by one or two other SFPs, before fully locking in. Hence, I only place my stops after a lower high is confirmed. Until then, I keep the position open unless a new candle puts in a close above the first SFP high.Swing Failure Patterns occur in all time frames. On higher timeframes, the tool is obviously more powerful but also takes a lot more time to play out.

When it comes to price action, there are endless resources to study the concept and endless variations of different patterns. I recommend diving into this topic, but take your time to do research, experiment, and test different systems. As usual, please remember this article is based on my limited experience in crypto trading and should not be considered advice. Do your due diligence, have some fun and make some money!

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