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Markets seek liquidity. Before a major reversal occurs, price often makes a final “jab” beyond a key high or low to trigger stop-losses and trap breakout traders. This is known as a Liquidity Sweep or Swing Failure Pattern (SFP). The Mkt-Viper SFP Engine automates the detection of these specific traps. It monitors key Pivot Points (swing highs/lows) and alerts you immediately when price sweeps a level but fails to close beyond it. Image

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What is an SFP?

An SFP can be a powerful reversal signal and tool to use for everyday trading. The engine looks for a very specific sequence of events that indicates a rejection:
  1. The Pivot: The engine identifies a significant swing high or swing low from the past.
  2. The Sweep (Trap): Current price wicks past that pivot level (triggering breakout buy orders or stop-loss sell orders).
  3. The Failure (Reversal): The candle Closes back inside the previous range.
    • Bearish SFP: Price breaks the high, but closes below the old high.
    • Bullish SFP: Price breaks the low, but closes above the old low.

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Visual Indicators

When a valid SFP is detected, the indicator draws a direct visual connection between the trap and the original level:
  • Dotted Connection Line: A dotted line connects the original Pivot High/Low to the current “Sweep” candle. This helps you instantly identify which level was just raided.
  • SFP Label:
    • SFP (Green): Bullish Swing Failure (Buying Opportunity).
    • SFP (Red): Bearish Swing Failure (Selling Opportunity).