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SWING FAILURE PATTERN (:closed_book: EXAMPLES (MAYNE SFP :fire:), SELL…
SWING FAILURE PATTERN
SELL ORDER - ABOVE MARKET, BUY ORDER - BELOW MARKET
Was the level
INVERSE
last? Only
SELL
if
SUPPORT
was last.
BUY
if
resistance
was last
No
How many times has the market significantly reacted to this level recently?
3+
PASS
2
Is it a deep swing? The short side of the swing is at least 1x D1 20 period ATR
No
PASS
Yes
Enter if an SFP forms with MACD divergence over three peaks/troughs.
Stop placement: above/below extreme high/low
1 more item...
Alternatively can enter if candle closes below support but next candle closes up or if candle closes above resistance but next candle is down.
1
Is it a deep swing? The short side of the swing is at least 1x D1 20 period ATR
Yes
Enter if an SFP forms
Stop placement: 24 period ATR above high / below low
1 more item...
No
PASS
Yes
How strong is the level?
Is the level visible on a
HTF
?
How far the market
moved away
from the level after reacting to it
Length of
time
number of reactions occurred over
Number of
reactions
1
Two factors of confluence
Has enough time passed to justify taking the trade? Rounded retest?
No
PASS
Yes
Ensure there is enough space from the point the market broke.
Stop placement: In most cases above / below "thrust candle" that broke and closed through the level you are trading
2 more items...
Confluences
Current price equal or above
D1 - ATR(20)
Key
Fibonacci/ICT
levels
D1/H6/H4
Bias
2
One factor of confluence + strong support level
3
No factors of confluence
PASS
:closed_book:
EXAMPLES
MAYNE SFP
:fire: