ICT Liquidity Sweep/Swing Fail Pattern V.1

# ICT Liquidity Sweep/Swing Fail Pattern V.1
## Indicator Description & User Guide

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## 📊 Indicator Overview

**Name:** ICT Liquidity Sweep/Swing Fail Pattern V.1
**Type:** Support/Resistance & Liquidity Detection
**Trading Style:** ICT Concepts (Inner Circle Trader)
**Best Timeframes:** 1M, 5M, 15M, 1H

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## 🎯 Core Features

### 1. **Support & Resistance Lines**
- Automatically draws key swing high and swing low levels
- Based on significant pivot points in price structure
- Updates dynamically as new swings form

### 2. **"X" Mark - Liquidity Sweep**
- **Symbol:** X marker on chart
- **Meaning:** Indicates a liquidity sweep (stop hunt)
- **What it shows:** Price briefly moved beyond a key level to trigger stops, then reversed
- **Trading significance:** High-probability reversal zones after liquidity is taken

### 3. **"SFP" Label - Swing Failure Pattern**
- **Symbol:** SFP text label
- **Meaning:** Swing Failure Pattern detected
- **What it shows:** Price attempted to make a new high/low but failed and reversed sharply
- **Trading significance:** Strong reversal signal - smart money rejecting the level

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## 📈 How to Use This Indicator

### Entry Setup Strategy:

#### **For SHORT Trades (Sell):**
1. Wait for **SFP** to appear at a swing high
2. Look for **X marker** confirming liquidity sweep above the high
3. **Entry Zone (Red Box):** Enter SHORT positions when price returns to this zone
4. **Stop Loss:** Place above the red zone (above the swept high)
5. **Take Profit (Green Box):** Target the green zone below

#### **For LONG Trades (Buy):**
1. Wait for **SFP** to appear at a swing low
2. Look for **X marker** confirming liquidity sweep below the low
3. **Entry Zone (Green Box):** Enter LONG positions when price returns to this zone
4. **Stop Loss:** Place below the green zone (below the swept low)
5. **Take Profit (Red Box):** Target the red zone above

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## 🎨 Color Coding System

| Color | Zone Type | Usage |
|-------|-----------|-------|
| 🔴 **Red Box** | Stop Loss / Supply Zone | Place SL here for LONG trades / Entry zone for SHORT trades |
| 🟢 **Green Box** | Take Profit / Demand Zone | Target zone for LONG trades / Place SL here for SHORT trades |
| ❌ **X Mark** | Liquidity Sweep Point | Stop hunt occurred - reversal likely |
| 📝 **SFP Label** | Swing Failure Pattern | Failed breakout - strong reversal signal |

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## 💡 Trading Examples

### Example 1: SHORT Trade (As shown in your chart)
```
1. SFP appears at swing high (Red zone around 4,000)
2. X marker confirms liquidity sweep above the high
3. Entry: SHORT when price re-enters red zone
4. Stop Loss: Above red zone (e.g., 4,002)
5. Take Profit: Green zone below (3,964-3,972)
6. Risk:Reward = 1:3+
```

### Example 2: LONG Trade
```
1. SFP appears at swing low (Green zone)
2. X marker confirms liquidity sweep below the low
3. Entry: LONG when price re-enters green zone
4. Stop Loss: Below green zone
5. Take Profit: Previous red zone above
6. Risk:Reward = 1:2 minimum
```

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## ⚠️ Important Trading Rules

### ✅ DO:
- Wait for BOTH SFP and X marker confirmation
- Enter on price returning to the zone (not on first touch)
- Use proper position sizing (1-2% risk per trade)
- Combine with market structure analysis
- Look for confluences (orderblocks, fair value gaps)

### ❌ DON'T:
- Trade against the higher timeframe trend
- Enter without confirmation signals
- Ignore the colored zones for SL/TP placement
- Overtrade - wait for quality setups
- Move stop loss to breakeven too early

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## 🔧 Indicator Settings (Typical)

**Adjustable Parameters:**
- Swing Length: Number of bars to identify swing points
- Show/Hide X markers
- Show/Hide SFP labels
- Zone opacity and colors
- Line thickness

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## 📚 ICT Concepts Explained

### **Liquidity Sweep:**
Smart money intentionally pushes price beyond key levels to trigger retail stop losses, then reverses to their intended direction. The X marker identifies these moments.

### **Swing Failure Pattern (SFP):**
Price attempts to make a new high/low but lacks follow-through, indicating weak momentum and likely reversal. Similar to a "false breakout" but more specific to swing structures.

### **Supply & Demand Zones:**
- **Red zones** = Areas where selling pressure overwhelmed buyers
- **Green zones** = Areas where buying pressure overwhelmed sellers
- These zones act as magnets for price to return and react

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## 🎓 Best Practices

1. **Confluence is Key:**
- Combine with daily/weekly bias
- Check for orderblocks nearby
- Look for imbalances (FVG)

2. **Session Timing:**
- Best during London/New York sessions
- Avoid low liquidity periods

3. **Risk Management:**
- Never risk more than 1-2% per trade
- Use proper lot sizing
- Take partial profits at key levels

4. **Timeframe Correlation:**
- Check higher timeframe for bias
- Enter on lower timeframe for precision
- Exit based on higher timeframe targets

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## 📞 Support & Updates

**Version:** 1.0
**Compatibility:** TradingView Pine Script v5
**Updates:** Regular improvements based on ICT methodology

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## ⚡ Quick Reference Card

| Signal | Action | SL Placement | TP Target |
|--------|--------|--------------|-----------|
| SFP + X at High | SHORT at Red Zone | Above Red | Green Zone |
| SFP + X at Low | LONG at Green Zone | Below Green | Red Zone |

**Remember:** The indicator shows you WHERE to trade, but YOU decide WHEN based on confirmation and market context.

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*Disclaimer: This indicator is a tool for technical analysis. Always use proper risk management and never trade with money you cannot afford to lose.*