MMXM Mentorship Episode 3: Failure Swings
Updated: September 11, 2025
Summary
The video explains failure swings in trading, where swings fail to reach previous highs or lows, indicating resistance and liquidity levels. It distinguishes between bullish and bearish failure swings and how they form based on market directions. The concept is crucial in a market maker buy model to target liquidity and rejection points for profitable trading strategies, emphasizing the importance of premium and discount levels for identifying these opportunities. Understanding failure swings helps confirm order flow directions, leading to effective trade entry and exit points in market analysis.
Understanding Failure Swings
Explains the concept of failure swings, which are swings that fail to take out previous highs or lows, and how they indicate resistance and liquidity in trading strategies.
Bullish and Bearish Failure Swings
Describes the differences between bullish and bearish failure swings and how they form in trading scenarios based on market directions.
Applying Logic to Market Maker Buy Model
Discusses how failure swings are used in a market maker buy model structure to target liquidity and rejection points for profitable trading strategies.
Premium and Discount Levels
Explains the importance of premium and discount levels in identifying failure swings and drawing liquidity for trading opportunities.
Confirmation of Order Flow
Highlights the significance of failure swings in confirming order flow directions and establishing trade entry and exit points in market analysis.
FAQ
Q: What are failure swings in trading?
A: Failure swings in trading refer to swings that fail to surpass previous highs or lows, indicating resistance and liquidity in trading strategies.
Q: How do bullish and bearish failure swings differ?
A: Bullish failure swings occur when a swing fails to surpass a previous low, signaling potential rejection at that level. Bearish failure swings happen when a swing fails to surpass a previous high, indicating possible resistance.
Q: How are failure swings used in a market maker buy model structure?
A: Failure swings are used in a market maker buy model structure to target liquidity and rejection points for developing profitable trading strategies.
Q: Why are premium and discount levels important in identifying failure swings?
A: Premium and discount levels play a crucial role in identifying failure swings as they help draw liquidity for trading opportunities and indicate potential rejection or resistance points.
Q: What significance do failure swings hold in confirming order flow directions?
A: Failure swings are significant in confirming order flow directions as they help establish trade entry and exit points based on market analysis and the failure to break certain price levels.
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