Swing Failure Pattern (SFP) Indicator on TradingView-Free [TFlab]

The Swing Failure Pattern (SFP) Indicator is a powerful TradingView tool crafted to detect false breakouts at critical price levels. A false breakout occurs when price briefly pierces a recent swing high or low with a wick but fails to maintain momentum, quickly reversing direction. These movements often indicate liquidity grabs, where institutional traders trigger stop-loss orders above resistance or below support to accumulate or distribute positions before moving the market in their intended direction.


You can access the indicator from this link:

https://tradingfinder.com/products/i...ilure-pattern/

You can access the indicator on the TradingView website:

https://www.tradingview.com/script/P...-ICT-Strategy/






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By spotting these patterns, the SFP Indicator helps traders:

1. Identify market manipulations by institutions
2. Align trades with dominant trends
3. Avoid common pitfalls in volatile market conditions

Key Features of the SFP Indicator

1. False Breakout Detection

1. Detects failed swings at recent highs and lows.
2. Confirms when price cannot sustain movement beyond a liquidity zone.

2. Liquidity Sweep Visualization

1. Highlights zones where stop-loss orders are likely triggered.
2. Provides insight into institutional accumulation or distribution.

3. Reversal Signals

1. Generates buy/sell signals based on rejection candles.
2. Uses arrows and color-coded lines to clearly indicate potential entries.

4. Swing Point Marking

1. Color-coded lines display recent swing highs and lows.
2. Allows traders to quickly identify key reversal levels.

5. Multi-Timeframe Support

1. Functions across intraday, swing, and long-term charts.
2. Enables confirmation of setups on higher or lower timeframes.

Markets & Compatibility

1. Platform: TradingView
2. Skill Level: Intermediate
3. Indicator Type: Reversal / Liquidity Pattern Indicator
4. Trading Styles: Intraday, Swing, Reversal
5. Applicable Markets: Forex, Cryptocurrencies, Stocks, Commodities

How the SFP Indicator Works

Uptrend Scenario

(Example: USD/JPY Daily Chart)

1. Price briefly dips below a key support level (recent low) with a wick.
2. Fails to close below the level → false breakout.
3. Stop-loss orders below the support are triggered → liquidity grab.
4. Price reverses upward, often resuming the trend.
5. Green arrow appears, signaling a potential buy entry.

This pattern identifies liquidity grabs followed by bullish continuation, helping traders enter at optimal reversal points.

Downtrend Scenario

(Example: EUR/USD Daily Chart)

1. Price briefly breaches a resistance level (recent high).
2. Cannot sustain the breakout → false breakout.
3. Liquidity above the high is absorbed, triggering a sharp downward move.
4. Red arrow appears, indicating a potential sell entry.

This confirms bearish momentum after a liquidity sweep.


Indicator Display & Signal Markers

1. Green lines/arrows: Bullish swing failure → Buy opportunities
2. Red lines/arrows: Bearish swing failure → Sell opportunities
3. Swing highs/lows: Clearly marked to show key reversal zones
4. Signal timing: Based on confirmation of false breakout and price reversion

These markers simplify spotting high-probability trade setups, enhancing reaction time in fast-moving markets.


Configuration & Customization

Logical Settings

1. Swings Period: Number of bars to detect swing highs/lows (default: 50)
2. SFP Type: Select false breakout at highs or lows
3. Max Swing Back Method: Determines the calculation for price reversion
4. Max Swing Back: Maximum allowed reversal from the breakout zone
5. Back-to-Break-Even Period: Timeframe for price to return near the entry point

Display Settings

1. Show all SFPs
2. Show only high SFPs (red)
3. Show only low SFPs (green)

Alert Settings

1. Enable real-time alerts
2. Customize alert names and messages
3. Adjustable alert frequency and time zone display

These settings allow full control over how the indicator displays signals and how alerts are received, enabling seamless integration into any trading workflow.


Practical Applications

1. Liquidity Grab Detection: Spot where stop-loss hunting occurs.
2. Optimal Entry Points: Enter trades near high-probability reversal zones.
3. Trend Confirmation: Align trades with the prevailing trend after liquidity sweeps.
4. Risk Management: Avoid false breakouts that mislead retail traders.
5. Versatile Trading: Suitable for intraday scalping, swing trading, and multi-timeframe analysis.

Conclusion

The Swing Failure Pattern (SFP) Indicator is an essential tool for traders following ICT (Inner Circle Trader) strategies, Smart Money Concepts (SMC), and liquidity-based trading methods. By identifying false breakouts at critical market levels, it provides:

1. Clear visual signals for entries and exits
2. Detection of stop-loss hunts and liquidity grabs
3. Improved accuracy in intraday and swing trading

With precise logic, visual clarity, and customizable alerts, the SFP Indicator empowers traders to make informed decisions, avoid market traps, and capitalize on institutional price movements.