Ever wonder what is SFP in trading? I see this pattern pop up constantly and honestly it's one of the clearest reversal setups once you know what to look for.

So here's the deal with Swing Failure Pattern - price pushes above a major resistance (or below support), looks like it's breaking through, then suddenly gets rejected and reverses hard. That's the core of it.

What makes SFP so interesting is the mechanics behind it. The price fakes out into new territory, sweeps liquidity above or below that known level, then the candle leaves this long wick sticking out before closing back inside the original zone. You usually see a volume spike during this too - that's the tell-tale sign something's off.

I find the best part about understanding what is SFP is recognizing it marks a clear local high or low. It's basically trapped traders getting liquidated becoming the fuel for the reversal move. When you see that long wick and the price rejection, you know there's real pressure underneath.

The beauty of SFP trading is it's not complicated - it's just price action telling you exactly where the weak hands got caught. Volume confirms it, the wick shows it, the reversal proves it. Once you start spotting these patterns on your charts, you'll see them everywhere. Not magic, just mechanics.