SFP Momentum

The SFP Momentum indicator is a technical tool that detects swing failure patterns (SFP), breakouts, and pivot levels to identify potential trend reversals and continuation points. It aims to provide traders with a comprehensive view of market structure by distinguishing between major and minor price movements using various visual markers.

Usage

The indicator displays several markers on the chart to identify structural shifts:

• Anchors (x): Represent major pivot highs and lows, used to establish significant price boundaries.
• Pivots (Arrows): Standard pivot points that define short-term price levels.
• Breakouts (B/b): "B" indicates a major breakout above a high anchor or below a low anchor, while "b" signifies a minor breakout through a pivot level.
• Swing Failures (F/f): "F" denotes a major swing failure pattern where price fails to sustain a move beyond an anchor level. "f" represents a minor swing failure at a pivot level.
• Accumulation/Distribution (A/D): Highlights areas where breakouts occur following specific structural shifts, suggesting potential trend transitions.

Colored candles are available to visualize momentum, with colors shifting based on the relationship between price, breakouts, and swing failures.

Details

The script utilizes two sets of lookback periods to differentiate between "Anchors" (major levels) and "Pivots" (minor levels). By comparing current price action to these historical levels, the indicator determines if a move is a breakout (successful breach) or a swing failure (rejection).

The momentum logic aggregates several factors, including recent breakout direction, proximity to major/minor levels, and accumulation/distribution status, to determine the candle coloring.

Settings

• Left Lookback: Number of bars to the left required to confirm a pivot or anchor.
• Right Lookback: Number of bars to the right required to confirm a pivot or anchor.
• Accumulation/Distribution?: Toggles the display of "A" and "D" labels on the chart.
• Plot Last Pivots?: Toggles the horizontal lines representing the most recent high and low price levels.
• Color Candles?: Enables or disables momentum-based candle coloring.

FAQ

How do I use the SFP Momentum labels for trading?

The "F" and "f" labels are often used to identify potential reversal points where the market "traps" traders before moving in the opposite direction. "B" and "b" labels help confirm trend strength and continuation.

What do the different line colors mean?

Green lines represent the last high anchor or pivot levels, while red lines represent the last low anchor or pivot levels. Blue lines track the most recent active pivot levels for immediate context.

How can I access SFP Momentum?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.