Strategy - CM8 - SFP

SFP (Swing Failure Patterns) is a trading strategy that plays out quite consistently in traditional markets but is also quite common on BTC on the 1hr, 4hr, and Daily time frame.  (If you find an SFP on the Weekly time frame, it is very significant).  The SFP can be traded both as a Reversal or Continuation strategy.

As with most strategies, the higher the time frame, the more likely there will be a prolonged move, however, if you're aiming to take profit quickly, this strategy, if targeting the first area of Market Structure can have a success rate of above 90%, assuming you have an excellent understanding of how to execute this strategy.

The most critical aspect of this strategy is defining a strong level of support or resistance.  As your trigger candle will be a Pin Bar or Hammer that has "swept" the level you have defined.  

The effect of the Pin Bar "sweeping" the level, is that some retail or new traders will have acted prematurely and entered positions at the break of this level, prior to the candle closing.  They become trapped in their position, only to find that the market quickly bounces and heads in the other direction.  This can eventually lead to account liquidations, which can in turn cause explosive moves.

As you are aiming to realise profits at the first area of Market Structure, an anticipated R:R value of 1.5 is fairly reasonable to aim for with this strategy. 

Many traders, once proficient with this strategy, will look to increase their level of risk if there is a confluence of Technical Analysis factors such as:

The strategy is taught via a 1on1 Zoom session.

Example 1: (SUSHIUSDT)
metadata image
Entry: $4.70
Stop:  $4.835
Target:  $4.378
R:R: 2.5
ROI: 6.85%
Summary: If you had risked $1.000 on this trade, your PnL would have been $2,500 made in 6 hours

Example 2: (AUDUSD)

metadata image

Entry: $0.69971
Stop:  $0.69641
Target:  $0.71016
R:R: 3
ROI: 1.49%
Summary: If you had risked $1.000 on this trade, your PnL would have been $3,000 made in 2 days

Note:  Although we don't teach trading on conventional markets, some strategies may work on those markets although for legal reasons we cannot/do not recommend it.

Learn how to do trades like these on your Trading Account. Buy now and select a time that suits you.  Times are subject to availability and are booked directly via access to the booking Calendar.