What is a swing failure pattern (SFP)?

A swing failure is when price briefly breaks a significant swing high or low, then quickly reverses and closes back within the previous range. It failed to sustain the move. That failure marks a liquidity grab and a potential reversal.

The pattern only means something at a level where stops actually rest: an untraded hourly swing point, a previous daily high or low, a session extreme. A wick through a random price in the middle of a range is noise, not a swing failure.

Kyle's system treats the swing failure as the confirmation event. The level tells you where to watch. The swing failure tells you the trap has sprung. Only then does the entry process start.

Sources: The Daily Sweep strategy · Liquidity + Fair Value Gap