Swing Failure Pattern V2 Indicator for MT4 – Smart Money Reversal Detection
The Swing Failure Pattern V2 Indicator for MT4 by LuxAlgo is a powerful Market Structure tool designed to automatically detect one of the most effective price action formations: the Swing Failure Pattern (SFP).
An SFP occurs when price briefly breaks above a previous high or below a previous low, attracts breakout traders, and then sharply reverses. This move often signals a Liquidity Grab by larger market participants—commonly referred to as “smart money.” For traders who want to avoid chasing false breakouts, SFP detection can be a major advantage.
Automated Swing Failure Detection
Manually identifying valid swing highs and lows can be subjective and time-consuming. The Swing Failure Pattern V2 Indicator solves this by:
Automatically detecting recent swing points
Marking bullish and bearish failure patterns
Drawing swing lines for visual clarity
Highlighting wick rejections
Displaying trend break arrows for confirmation
This structured and rule-based approach removes guesswork while keeping charts clean and readable.
Ideal Timeframes for Liquidity Sweeps
The indicator performs particularly well on:
M15
M30
H1
H4
These timeframes often show clear liquidity sweeps and tradable reversals, making SFP setups more visible and reliable.
Swing Failure Pattern V2 Trading Signals
The indicator generates signals when a valid SFP forms based on strict structural rules.
Bearish Swing Failure Pattern
Price breaks above a previous swing high
Candle closes back below that high
Suggests trapped buyers and potential downside momentum
Indicator marks the failure zone and may display bearish labels or trend break arrows
Bullish Swing Failure Pattern
Price sweeps below a prior swing low
Quickly reclaims and closes above it
Suggests trapped sellers and potential bullish reversal
Indicator marks the zone with supportive confirmation visuals
These setups become especially powerful when they occur:
Near key support or resistance levels
After extended impulsive moves
In alignment with higher-timeframe bias
The added trend break arrows help confirm when market structure begins shifting after the failure, filtering weaker setups.
Built for Liquidity & Structure Traders
This indicator is ideal for traders who:
Trade false breakouts and liquidity grabs
Follow smart money concepts
Use market structure-based systems
Focus on reversal timing
Combine lower-timeframe entries with higher-timeframe context
It works well for both experienced liquidity traders and intermediate traders seeking a structured reversal framework.
Conclusion
The Swing Failure Pattern V2 Indicator for MT4 is a highly effective visual tool for identifying false breakouts and liquidity-driven reversals. By automating SFP detection and adding structural confirmation elements, it removes uncertainty while preserving chart clarity.
When combined with disciplined risk management and higher-timeframe analysis, this indicator becomes a strong component of a professional Price Action Trading strategy.
