Swing Failure Pattern (SFP) — MT5 Liquidity Sweep Reversal Signals

Description

The Swing Failure Pattern indicator marks the moment a breakout fails. When a candle wicks above a significant prior high but closes back below it, the buy stops resting above that high have been taken and the move rejected: a bearish SFP, marked with a sell arrow at the tip of the wick. The bullish SFP is the mirror image, a wick below a prior low that closes back above it after sweeping the sell stops underneath. These traps are where breakout traders get caught and where liquidity traders look for reversals.

The level being swept has to matter. By default the indicator takes the highest high and lowest low of the last 100 bars and ignores levels set within the most recent 10 bars, so a candle poking through the previous bar’s high does not count as a swing failure. An optional minimum-wick filter (2 pips, off until you enable it) rejects sweeps that clear the level by only a fraction. Each swept level is drawn as a dashed line from the bar that set it to the SFP bar, and the 20 most recent lines are kept on the chart.

Signals are processed on closed bars only by default, so an arrow does not appear and then vanish while the candle is still forming. Arrows are plotted from indicator buffers rather than chart objects (buffer 0 bearish, buffer 1 bullish), which keeps the chart light and lets an Expert Advisor read them through iCustom. Alerts arrive as popup, sound (a different sound for bearish and bullish), push notification and email, with popup, sound and push on by default.

This is an MQL5 conversion of the Swing Failure Pattern Lua indicator by Mario Jemic (fxcodebase.com). Arrows were moved from the close to the wick tip, bullish and bearish SFPs got separate colours, and the wick filter and swept-level lines were added.

For the levels themselves, pair it with Buyers & Sellers Profile + Dynamic S/R: a swing failure at a high-score volume-profile level carries more weight than one at an arbitrary high or low.

Works well alongside Liquidity Entry Signals, which takes a similar sweep-and-reject idea and adds an ATR stop and three risk-reward targets. Free MT5 (.mq5) source included. Educational tool, not financial advice.