Framework

SFP Model Framework

The SFP Model follows this logical sequence for every potential setup:

Pivot Detection

A recent significant high (for bearish setups) or low (for bullish setups) is identified using your chosen pivot length:

• one of the 9 preset lengths

• your custom length

• or “Automatic” mode (scans multiple lengths and picks recent high-quality candidates)

Sweep Occurs

Price makes a new extreme that goes beyond the pivot level (a “liquidity grab” or fakeout), but the candle body stays on the “safe” side of the pivot:

• Bearish SFP: high goes above previous swing high, but close stays below it

• Bullish SFP: low goes below previous swing low, but close stays above it This creates the classic “failure to follow through” pattern.

Confirmation Check

The setup waits for price to close strongly in the reversal direction:

• Bullish → close above the highest point of the sweep candle

• Bearish → close below the lowest point of the sweep candle Once this happens → the SFP is Confirmed (turns blue).

Outcome Evaluation (after confirmation)

The model now watches how far price moves in the expected direction:

• Price reaches the trendline opposing boundary first → Partial Success (lime color)

• Price reaches the channel opposing boundary (stronger target) → Successful (green color)

• Price turns around and breaks the original swing level or the sweep wick extreme in the wrong direction → Failed (red color)

Invalidation (can happen at any stage before full success)

The setup is cancelled and marked Invalidated (orange) if any of these occur:

• An opposite-direction SFP appears before confirmation

• Price returns inside the original swing level without confirming

• The pattern becomes too old (roughly >500 bars) or violates internal range rules

High-Probability Filter (optional – enabled by default)

When turned on, only SFPs are shown (and alerted) where at least one of the two key wicks — either the sweep wick or the formation/succession wick — actually touches or crosses the active boundary line.

• If both trendline and channel are enabled → the channel is preferred for this check. This significantly reduces noise and focuses on setups with structural context.

Best Combined With: IFVGs and FVGs

SFPs tend to deliver much stronger and more reliable signals when they form near, at the edge of, or directly inside Fair Value Gaps (FVGs) or Inversion Fair Value Gaps zones (IFVGs).

These imbalance areas frequently act as powerful magnets and high-probability reaction zones:

• A bullish SFP appearing at or near a lower FVG/IFVG very often triggers strong upward reversals.

• A bearish SFP appearing at or near an upper FVG/IFVG very often triggers strong downward reversals.

Practical trading applications of this confluence:

• Use the SFP confirmation as the primary entry trigger.

• Treat nearby/underlying FVGs and IFVGs as:

  • directional confluence (bias confirmation)

  • realistic target zones (price tends to fill or react at these levels)

  • clear invalidation levels (price closing through the gap often kills the setup)

SFP + FVG/IFVG is widely regarded as one of the cleanest and most effective confluences when trading this model in live markets.

IFVG Example

FVG Example

This combination (SFP + FVG/IFVG) is one of the most popular and effective ways to trade the model in real markets.

This flow ensures every SFP is tracked from birth → confirmation → success/failure/invalidation with clear visual feedback at each stage.