QQQ: Scaling Recursive PatternsSo far the closest recursive pattern that can mimic current growth would be shape of expansion after covid crash. In both cases the fall was sharp that caused it grow in distinctive way, so we can grab the cycle of the pattern. To keep it simple for this structure, crossing curve would be first sign that price breaks out of regular rhythm and might dive sooner. Added other related patterns:
Fractal
gold strong upwardGold will continue its strong upward trend, the corrections seem to have come to an end, the gold price is certain to reach above $3500, if the current price and the price of 3235 break down, you should not panic, the direction of the gold price movement is still towards the ceiling ( ATH ) CMCMARKETS:GOLD
Understanding SFP In Trading1. What is a Swing Failure Pattern (SFP)?
A Swing Failure Pattern (SFP) occurs when the price temporarily breaks a key swing high or low but fails to continue in that direction, leading to a sharp reversal.
This pattern is often driven by liquidity grabs, where price manipulates traders into taking positions before reversing against them.
An SFP typically consists of:
A false breakout beyond a previous swing high/low.
A sharp rejection back within the prior range.
A liquidity grab, triggering stop-loss orders and fueling a reversal.
SFPs provide powerful trade opportunities, signaling potential reversals and the exhaustion of trends.
2. Understanding Liquidity Grabs & Stop Hunts
The financial markets are structured around liquidity. Large institutions and algorithmic traders require liquidity to execute their large orders efficiently.
One way they achieve this is by triggering liquidity grabs and stop hunts.
Liquidity Grab:
Occurs when price moves beyond a key level (e.g., swing high/low), activating orders from breakout traders and stop-losses of trapped traders.
Smart money absorbs this liquidity before pushing the price in the opposite direction.
Stop Hunt:
A deliberate price movement designed to trigger stop-loss orders of retail traders before reversing.
Often seen near major support and resistance levels.
These events are crucial for understanding SFPs because they explain why false breakouts occur before significant reversals.
3. Why Smart Money Uses SFPs
Institutions, market makers, and algorithmic traders use SFPs to:
Fill large orders: By grabbing liquidity at key levels, they ensure they can enter large positions without causing excessive price slippage.
Manipulate retail traders: Many retail traders place stop-losses at obvious swing points. Smart money exploits this by pushing the price beyond these levels before reversing.
Create optimal trade entries: SFPs often align with high-probability reversal zones, allowing smart money to enter positions at better prices.
Understanding how institutions operate gives traders an edge in identifying manipulative moves before major price reversals.
4. Market Structure & SFPs
Market structure is built upon a series of swing highs and swing lows. Identifying these key points is crucial because they represent areas where liquidity accumulates and where price is likely to react.
Swing High (SH): A peak where price makes a temporary high before reversing downward.
Swing Low (SL): A trough where price makes a temporary low before reversing upward.
Types of Swing Points in Market Structure
Higher Highs (HH) & Higher Lows (HL) – Bullish Trend
Lower Highs (LH) & Lower Lows (LL) – Bearish Trend
Equal Highs & Equal Lows – Range-Bound Market
5. Liquidity Pools: Where Traders Get Trapped
Liquidity pools refer to areas where traders' stop-loss orders, pending orders, and breakout entries accumulate. Smart money uses these liquidity zones to execute large orders.
Common Liquidity Pool Zones:
Above swing highs: Retail traders place breakout buy orders and stop-losses here.
Below swing lows: Stop-losses of long positions and breakout sell orders accumulate.
Trendline & Range Liquidity:
Multiple touches of a trendline encourage traders to enter positions based on trendline support/resistance.
Smart money may engineer a fake breakout before reversing price.
6. Identifying Bullish SFPs
SFPs can occur in both bullish and bearish market conditions. The key is to identify when a liquidity grab has occurred and whether the rejection is strong enough to confirm a reversal.
Bullish SFP (Swing Low Failure in a Downtrend)
Price sweeps a key low, triggering stop-losses of long traders.
A strong rejection wick forms, pushing price back above the previous low.
A shift in order flow (bullish market structure) confirms a potential reversal.
Traders look for bullish confirmation, such as a higher low forming after the SFP.
Best bullish SFP setups occur:
At strong support levels
Below previous swing lows with high liquidity
After a liquidity grab with momentum confirmation
7. Identifying Bearish SFPs
Bearish SFP (Swing High Failure in an Uptrend)
Price takes out a key high, triggering stop-losses of short traders.
A sharp rejection forms, pushing the price back below the previous high.
A bearish shift in order flow confirms downside continuation.
Traders look for bearish confirmation, such as a lower high forming after the SFP.
Best bearish SFP setups occur:
At strong resistance levels
Above previous swing highs where liquidity is concentrated
With clear rejection wicks and momentum shift
8. How SFPs Signal Reversals
SFPs provide early warning signs of trend reversals because they expose areas where liquidity has been exhausted.
Once liquidity is taken and the price fails to continue in that direction, it often results in a strong reversal.
Key Signs of a Strong SFP Reversal
Long wick rejection (indicating absorption of liquidity).
Close back inside the previous range (invalidating the breakout).
Increased volume on the rejection candle (confirming institutional activity).
Break of short-term market structure (trend shifting).
Divergences with indicators (e.g., RSI divergence at the SFP).
9. Identifying High-Probability SFPs
One of the most critical aspects of a valid SFP is how the price reacts after a liquidity grab. The candle’s wick and close determine whether an SFP is strong or weak.
A. Wick Rejections & Candle Closes
Key Features of a Strong SFP Wick Rejection
Long wick beyond a key swing high/low (indicating a liquidity grab).
Candle closes back inside the previous range (invalidating the breakout).
Engulfing or pin bar-like structure (showing aggressive rejection).
Minimal body size relative to wick length (e.g., wick is 2–3x the body).
Bullish SFP (Swing Low Failure)
Price sweeps below a key low, triggering stop-losses of buyers.
A long wick forms below the low, but the candle closes back above the level.
This signals that smart money absorbed liquidity and rejected lower prices.
Best bullish SFPs occur at major support zones, previous swing lows, or untested demand areas.
Bearish SFP (Swing High Failure)
Price sweeps above a key high, triggering stop-losses of short sellers.
A long wick forms above the high, but the candle closes back inside the range.
This signals that smart money absorbed liquidity and rejected higher prices.
Best bearish SFPs occur at resistance levels, previous swing highs, or untested supply areas.
❌ Weak SFPs (Avoid These)
❌ Wick is too small, meaning the liquidity grab wasn’t significant.
❌ Candle closes above the swing high (for a bearish SFP) or below the swing low (for a bullish SFP).
❌ Lack of strong momentum after rejection.
B. Volume Confirmation in SFPs
Volume plays a crucial role in validating an SFP. Institutional traders execute large orders during liquidity grabs, which often results in spikes in trading volume.
How to Use Volume for SFP Confirmation
High volume on the rejection wick → Indicates smart money absorption.
Low volume on the breakout move → Suggests a lack of real buying/selling pressure.
Increasing volume after rejection → Confirms a strong reversal.
Spotting Fake SFPs Using Volume
If volume is high on the breakout but low on the rejection wick, the move may continue trending rather than reversing.
If volume remains low overall, it suggests weak market participation and a higher chance of chop or consolidation instead of a clean reversal.
Best tools for volume analysis:
Volume Profile (VPVR)
Relative Volume (RVOL)
Footprint Charts
10. Key Takeaways
SFPs are Liquidity Grabs – Price temporarily breaks a key high/low, triggers stop losses, and then reverses, signaling smart money absorption.
Wick Rejection & Close Matter – A strong SFP has a long wick beyond a swing point but closes back inside the range, invalidating the breakout.
Volume Confirms Validity – High volume on rejection wicks indicates smart money involvement, while low-volume breakouts often fail.
Higher Timeframes = Stronger SFPs – 1H, 4H, and Daily SFPs are more reliable than lower timeframe setups, reducing false signals.
Confluence Increases Probability – SFPs are most effective when aligned with order blocks, imbalances (FVGs), and major liquidity zones.
Optimal Entry Methods Vary – Aggressive entries capitalize on immediate rejection, while confirmation and retracement entries improve accuracy.
Proper Stop Loss Placement Prevents Fakeouts – Placing SL just beyond the rejection wick or using structure-based stops reduces premature exits.
Take Profit at Key Liquidity Levels – Secure profits at previous swing highs/lows, order blocks, or imbalance zones to maximize returns.
PLTR: Encoded Wave Replication IAs bullish wave gets mature on the way up, it draws distinctive tops in a way that warns of bullish exhaustion ahead because to some extent topologically highs indicate a registered rejection of moving further in a local scope (some period).
Scalable Recursive Patterns
If we pay attention to building blocks on smaller scale
Those patterns replicate in bigger scale for example
If the pattern really carries the identified encoding, I'd pay attention to how price retraces within fibonacci channel which is adjusted to the direction of fractal cycle in a clean version.
ZKUSDTCryptocurrency Futures Market Disclaimer 🚨🚨🚨
Trading cryptocurrency futures involves high risks and is not suitable for all investors.
Cryptocurrency prices are highly volatile, which can lead to significant gains or losses in a short period.
Before engaging in crypto futures trading, consider your risk tolerance, experience, and financial situation.
Risk of Loss: You may lose more than your initial capital due to the leveraged nature of futures. You are fully responsible for any losses incurred.
Market Volatility: Crypto prices can fluctuate significantly due to factors such as market sentiment, regulations, or unforeseen events.
Leverage Risk: The use of leverage can amplify profits but also increases the risk of total loss.
Regulatory Uncertainty: Regulations related to cryptocurrencies vary by jurisdiction and may change, affecting the value or legality of trading.
Technical Risks: Platform disruptions, hacking, or technical issues may result in losses.
This information is not financial, investment, or trading advice. Consult a professional financial advisor before making decisions. We are not liable for any losses or damages arising from cryptocurrency futures trading.
Note: Ensure compliance with local regulations regarding cryptocurrency trading in your region.
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VETUSDTCryptocurrency Futures Market Disclaimer 🚨🚨🚨
Trading cryptocurrency futures involves high risks and is not suitable for all investors.
Cryptocurrency prices are highly volatile, which can lead to significant gains or losses in a short period.
Before engaging in crypto futures trading, consider your risk tolerance, experience, and financial situation.
Risk of Loss: You may lose more than your initial capital due to the leveraged nature of futures. You are fully responsible for any losses incurred.
Market Volatility: Crypto prices can fluctuate significantly due to factors such as market sentiment, regulations, or unforeseen events.
Leverage Risk: The use of leverage can amplify profits but also increases the risk of total loss.
Regulatory Uncertainty: Regulations related to cryptocurrencies vary by jurisdiction and may change, affecting the value or legality of trading.
Technical Risks: Platform disruptions, hacking, or technical issues may result in losses.
This information is not financial, investment, or trading advice. Consult a professional financial advisor before making decisions. We are not liable for any losses or damages arising from cryptocurrency futures trading.
Note: Ensure compliance with local regulations regarding cryptocurrency trading in your region.
thanks for like and follow @ydnldn
SP500 - Cycle Analysis; New V-Bottom24 Dec 2018 - V-Bottom Trough:
This marks a clean V-bottom. Both the 227-ROC and 114-ROC showed simultaneous positive acceleration after price reacing its low. Shortly after, both crossed their 57-SMA almost in sync — increasing the probability of a sustained bullish move. Price confirmed this by breaking resistance and forming a V pattern. This was further validated by the centered moving average crossover (114-CMA crossing above 227-CMA).
25 Mar 2020 - Deep COVID Crash Trough:
During this phase the priced broke below the support, creating a deep trough. Altough both ROC lines initially showed strong negative acceleration due to the COVID-19 crash, they soon reversed above their 57-SMAs, signaling a major shift in momentum. This coincided with the price breaking above the key resistance which was also crossed in 2019 when confirming the old V-pattern. After this breakout, a brief pullback followed before the uptrend resumed with increasing strength.
22 Jun 2021 to 19 Dec 2023 - Pattern
During the initial period a bearish divergence was visible in the ROC, nevertheless price and rate of change both declined making a low in early October 2022. A technical pattern began to form, which appears to align more closely with a symmetrical triangle; So when measuring its height and projecting it from the breakout point aligns with the new all-time highs that were reached on 27 June 2025.
21 Mar 2025 - New Cycle Trough
A new V-bottom formed shortly after the current cycle began. Both ROC indicators had already crossed their SMAs to the upside, showing early signs of positive acceleration, days before of price broke through the resistance and reached the new record high.
The 227-SMA is likely to cross from below the fast SMA while a possibility of a pullback increase.
Following that, the 114-CMA will probably has the chance to cross back the 227-CMA, with the price potentially confirming a new support level and resuming its uptrend - in line with the broader cycle timeline.
FLOKI on Fire! Bullish Summer for FLOKIUSDTDuring the two-month period from July to August, it's unclear what the specific catalyst might be, but Floki appears poised for a price surge between 75% to 133%. The June low at 0.00005923 seems to mark a solid bottom, and from here, I anticipate a bullish trend in Floki’s price.
#GBPUSD: Bulls are in control, DXY Dropping Sharply!Hello Team,
We have identified a promising opportunity with a favourable price movement. The Pound Sterling to US Dollar (GBPUSD) pair has exhibited strong bullish volume, indicating potential further appreciation.
The current geopolitical tensions, particularly the involvement of the United States in the Iran-Israel conflict, are expected to negatively impact the US Dollar. This decline could potentially lead to an appreciation of the GBPUSD pair and other USD-denominated currencies.
It is advisable to closely monitor the price behaviour of the GBPUSD pair and consider potential investment opportunities based on its current trend.
Best regards,
Team Setupsfx
Market Re-Cap and Outlook for NEXT WEEKHere I am giving you a little insight as to what trades I am currently in, taken & looking to take for the week just gone and the week coming.
1 Winning trade on EU
1 Current open position on EU
EURGPB - Breakdown
AUDUSD - Breakdown
NZDUSD - Breakdown
Gold - Breakdown
If there are any pairs you would like me to share my feedback on give me a message and I will be happy to try and do so.
Thanks
Happy Hunting
Bitcoin: Curve AdjustmentsBottoms can be expressed as a curve which matches logarithmic growth patterns. In the long-term perspective it serves as signal of trend's transition phase in broader scale. Coordinate of top adjusted accordingly.
Extending them is crucial because together they gives boundaries of range compression. Some sort of wave limits which help to clarify price-based levels.
WHAT IS THE EXPECTED RETURN and DURATION of this GOLD Bull Run?Well, when measured against the DXY index, a clear trend becomes apparent.
A Golden Bull typically lasts about 40 quarters, which is essentially 1 decade (give or take a quarter).
Similar to #Bitcoin and its cyclical bull markets within a larger secular bull, the returns tend to decrease over time.
However, it seems that a triple-digit Gold price relative to the DXY is on the horizon at the very least.
What would that look like if the DXY were to hit a new low around 69? This would suggest a Gold price of $6900 at a ratio of 100:1.
A Gold price of $12K with a DXY of 80 only requires a ratio of 150...
Thus, a five-digit Gold price is certainly within the realm of possibility.
I have forecasts that extend as high as $12K.
EURUSD - Potential buying opportunityLooking at EURUSD
We are still very bullish with no sign of it slowing.
I am aware of a potential weekly liquidity point to the left, however, until EURUSD shows its hand it's important that we still remain bullish.
We have set up a lovely liquidity point before a lovely demand area.
So I will be setting a pending order at the demand area after the New York close and the Asian session begins.
Market crash looming - Fractal Echo of 2007 - 2025 S&P 500 In what other case could the "market" be here if it wasn't centrally rigged?
Geopolitics aside. The 2025 vs. 2007 numerological equivalence ("9" year) shows the power of 9 taking over: the end of a rigged bull market.
Chart overlays the S&P 500 price action from 2023–2025 (white line) with that of the 2006–2008 pre-GFC period (red line), highlighting an uncanny fractal similarity in structure, tempo, and momentum. The visual suggests that 2025 (numerologically marked as a “9” year, like 2007) may be echoing the same setup seen before the 2008 financial crisis: just massively worse.
XAUUSD Outlook: Watching FVG Reaction for Bearish EntryThe previous day’s up-close candle didn’t reflect strong bullish conviction. Although price opened higher than the previous candle’s close, it closed only slightly above — completing the three-candle formation required to establish a Fair Value Gap (FVG).
As expected, buy-side liquidity above the previous day’s high has been raided. Price is now pushing towards the consequent encroachment of the FVG. How the market reacts at this level will be key in determining the next directional move.
While I maintain a bearish bias, I expect the market to trade higher into a bearish order block, providing a potential opportunity to enter short. If price does not react from the current FVG, it could continue higher to sweep liquidity resting above the swing high at 2357.82, which sits just below another unfilled FVG.
Entry Strategy
I will look to enter short only after a clear displacement, signalling a change in state of delivery, either:
Off the reaction from the current FVG, or
From a deeper liquidity zone
If no such confirmation presents itself, I will remain on the sidelines and wait for a more favourable setup.
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Disclaimer:
This content is for educational and informational purposes only and does not constitute financial or investment advice. All trading involves risk. You are solely responsible for your own decisions, so always conduct proper research and due diligence before taking any trades.
Past performance is not indicative of future results. Trade responsibly.
MSTR 10x From HereThis fractal compares the current price action of MSTR to its price action in 2021, during the previous Bitcoin bull market. This time, it is moving slower, so the time interval was adjusted to 1 week instead of 1 day. The next base consolidation target is around December 2024, with a top expected around April-June 2025.