Oscillator Swing Failure

Oscillator Swing Failure brings Wilder's failure-swing template to the chart as a strict state machine — the first faithful build of the oscillator swing failure in the library. A pivot inside the extreme zone seeds the pattern, the pullback between swings fixes the fail point, a lower high (or higher low from oversold) arms it, and the signal fires when the oscillator breaks that fail point. Everything happens on the indicator itself — no price pivots involved.

How to Trade the Oscillator Swing Failure?

• Armed: a dotted watch line marks the fail point and the dashboard shows its value; a break of that level is the trigger, with "Armed" alerts on both sides.
• Swing Failure label: the fail point broke — the completed structure draws extreme, fail point and retest; its tooltip reports depth and speed.
• Extreme Set: the first extreme pivot printed; the build is waiting for the retest swing.

Oscillator Swing Failure Settings

• Oscillator (default RSI): the line the pattern is detected on — Stochastic, CCI and MFI are the alternatives.
• Source (default close) and Length (default 14); %K Smoothing (default 3) applies to the Stochastic only.
• Swing Pivot Length (default 3): bars each side an oscillator swing must dominate; small values catch tight, fast failures.
• Max Pattern Duration (default 40): bar budget from extreme to break.
• Retest Inside Threshold (default off): keeps the retest swing out of the extreme zone.
• Thresholds (default Auto), or Custom Overbought (default 70) and Custom Oversold (default 30).
• Signals (default Both): restricts detection to one side, useful in strong trends where countertrend failures repeat; dashboard and display toggles are on by default.

Frequently Asked Questions

How is a swing failure different from divergence?

Divergence lines price swings up against oscillator swings, so the read depends on which price pivots you pick. A swing failure is self-referential: the Relative Strength Index — or whichever oscillator you select — fails against its own prior extreme, then breaks its own swing point.

Does the signal repaint?

Swings confirm Swing Pivot Length bars after their extreme, so arming arrives with that delay. Once armed, the fail-point level is locked and the break is evaluated against the live oscillator value — a printed Swing Failure does not un-print.

Which oscillator should I run it on?

RSI is where the template was defined, and the Auto thresholds adapt to your pick — 70/30 for RSI, 80/20 for the Stochastic and MFI, +100/-100 for CCI. Faster oscillators print more patterns with more noise; the mechanics are identical.