What is an SFP, and why do smart traders love it?
A Swing Failure Pattern (SFP) happens when price fakes out above a key high (or below a low), fails to hold it, and then reverses hard.
➡️ It hunts liquidity above a known level
➡️ Leaves a wick and closes back inside the range
➡️ Usually comes with a volume spike
➡️ Often marks local tops or bottoms with clean risk
It’s not magic — it’s just trapped traders fueling the reversal.