Failure Swings
Failure Swings
Failure Swings
Identifying and applying failure swings
Identifying and applying failure swings
Identifying and applying failure swings
Lesson 1
Lesson 1
Lesson 1
15 min
15 min
15 min
Failure Swing Formation
Failure Swing Formation
Failure Swing Formation
Failure swing highs:
Failure swing highs:
Failure swing highs:
The market trades higher to put in an initial high. Following this high being formed, price moves deep back up into it while failing to trade above it. This creates the initial high with a lower high to the right. Lower highs continue to be made following the highest high which builds up the failure swings.
The market trades higher to put in an initial high. Following this high being formed, price moves deep back up into it while failing to trade above it. This creates the initial high with a lower high to the right. Lower highs continue to be made following the highest high which builds up the failure swings.
The market trades higher to put in an initial high. Following this high being formed, price moves deep back up into it while failing to trade above it. This creates the initial high with a lower high to the right. Lower highs continue to be made following the highest high which builds up the failure swings.
Failure swing lows:
Failure swing lows:
Failure swing lows:
The market trades lower to put in an initial low. Following this low being formed, price moves deep back down into it while failing to trade below it. This creates the initial low with a higher low to the right. Higher lows continue to be made following the lowest low which builds up the failure swings.
The market trades lower to put in an initial low. Following this low being formed, price moves deep back down into it while failing to trade below it. This creates the initial low with a higher low to the right. Higher lows continue to be made following the lowest low which builds up the failure swings.
The market trades lower to put in an initial low. Following this low being formed, price moves deep back down into it while failing to trade below it. This creates the initial low with a higher low to the right. Higher lows continue to be made following the lowest low which builds up the failure swings.
Relevant Swing
Relevant Swing
Relevant Swing
When failure swings form in the market, the focus is moved to either the highest high to the left on failure swing high or the lowest low to the left on failure swing lows. Watching the extremes of highs and lows in this conditions ensures that the market is trading at the relevant level to have a proper reaction.
When failure swings form in the market, the focus is moved to either the highest high to the left on failure swing high or the lowest low to the left on failure swing lows. Watching the extremes of highs and lows in this conditions ensures that the market is trading at the relevant level to have a proper reaction.
When failure swings form in the market, the focus is moved to either the highest high to the left on failure swing high or the lowest low to the left on failure swing lows. Watching the extremes of highs and lows in this conditions ensures that the market is trading at the relevant level to have a proper reaction.
False Failure Swings
False Failure Swings
False Failure Swings
The first action you should take when initially identifying potential failure swings in the market is to compare that same area on the chart on a correlated pair. If a bullish divergence is formed off the lowest low, then they are false failure swing lows. If a bearish divergence is formed off the highest high, then they are false failure swing highs. Otherwise if there is no divergence formed on either correlated pair then they are true failure swings which should be considered as such.
The first action you should take when initially identifying potential failure swings in the market is to compare that same area on the chart on a correlated pair. If a bullish divergence is formed off the lowest low, then they are false failure swing lows. If a bearish divergence is formed off the highest high, then they are false failure swing highs. Otherwise if there is no divergence formed on either correlated pair then they are true failure swings which should be considered as such.
The first action you should take when initially identifying potential failure swings in the market is to compare that same area on the chart on a correlated pair. If a bullish divergence is formed off the lowest low, then they are false failure swing lows. If a bearish divergence is formed off the highest high, then they are false failure swing highs. Otherwise if there is no divergence formed on either correlated pair then they are true failure swings which should be considered as such.
Unsure what a divergence is? You will learn that in the next lesson.
Unsure what a divergence is? You will learn that in the next lesson.
Unsure what a divergence is? You will learn that in the next lesson.
Chart Purpose
Chart Purpose
Chart Purpose
Failure swings are used as areas in price that the market will tend to draw into in a way that offers the least resistance. The standard protocol is to never trade away from failure swings, however you will learn the conditions where slightly different rules may apply later in the course. The highest high and lowest low of failure swings also offer proper areas to frame reversals when the narrative aligns.
Failure swings are used as areas in price that the market will tend to draw into in a way that offers the least resistance. The standard protocol is to never trade away from failure swings, however you will learn the conditions where slightly different rules may apply later in the course. The highest high and lowest low of failure swings also offer proper areas to frame reversals when the narrative aligns.
Failure swings are used as areas in price that the market will tend to draw into in a way that offers the least resistance. The standard protocol is to never trade away from failure swings, however you will learn the conditions where slightly different rules may apply later in the course. The highest high and lowest low of failure swings also offer proper areas to frame reversals when the narrative aligns.
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance