Adilius,
RE: The swing pattern failure.
Here is an example of swing pattern failure that is bullish.
Price makes a swing low at the circled area on the chart.
Price then rallies away from this swing low.
It returns on the day marked by the blue arrow and breaks the swing low intraday but closes above it.
Once you see this, I have found it to be high probability that the next day will be a positive one. From time to time, this can also mark the beginning of a trend reversal.
This pattern would naturally be in reverse for bearish swing pattern failure.
RE: The swing pattern failure.
Here is an example of swing pattern failure that is bullish.
Price makes a swing low at the circled area on the chart.
Price then rallies away from this swing low.
It returns on the day marked by the blue arrow and breaks the swing low intraday but closes above it.
Once you see this, I have found it to be high probability that the next day will be a positive one. From time to time, this can also mark the beginning of a trend reversal.
This pattern would naturally be in reverse for bearish swing pattern failure.