Swing Failure (Signal of Trend Reversal) :
A swing failure is the early stage of a trend reversal. It occurs when the price attempts to create a new high or break a significant level, but due to a lack of momentum, it fails to either make the new high or stay above the key level, and then reverses in the opposite direction.
Early Signals of Swing Failure:
1. Strong reversal candlesticks at key levels (e.g., Engulfing, Shooting Star)
2. Multiple price rejections at key levels
3. Price-volume divergence at key levels
4. RSI divergence (use short period)
5. MACD divergence (use short period)
6. Overbought/Oversold conditions
