Swing Failure Pattern (SFP)

A swing failure pattern (SFP) is a term used by traders, particularly in crypto, for a failed attempt to break a recent swing high or swing low. The price pushes just past the earlier extreme, often triggering stop-loss orders and breakout entries clustered there, but then reverses and closes the candle back inside the previous range. A failure above a swing high is read as a possible bearish signal, and one below a swing low, such as a dip under a support level that quickly recovers, as a possible bullish one. The idea is that the move swept up resting orders without finding real follow-through. It is closely related to the bull trap and bear trap. Like other patterns in technical analysis, it is interpreted subjectively and often fails, so traders usually seek confirmation from other signals.