Setup summary: SFP + Key Volume level set
1. Context:
Pattern: double top + swing failure pattern (SFP)
Timeframe: likely M15–H1 (possibly during the Asian/European session)
Background: the price slightly breaks its previous high (liquidity grab), then sharply reverses - a clear trap.
2. Confirmation:
A clear Key Volume candle appears at the top - indicating market maker activity.
A strong rejection candle (pin bar or engulfing) confirms the SFP.
The price failed to stay above the new high - the trap is confirmed.
3. Entry strategy:
Entry: after the close of the confirming SFP candle.
Stop loss: above the SFP high or major volume level (a 'valid' stop loss, not necessarily tight).
Take profit:
In the short term: 3R (if trading within the session).
In the long term: target the demand or daily support zone if the trend supports it.
4. Risk management (according to system guidelines):
Maximum risk per trade: 1-2% of the account.
If the setup is invalid: immediately reduce the loss, and do not widen the stop loss or overtrade.