Get started

Quasimodo

QML pattern Quasimodo | SMART MONEY CONCEPTHello all. Today we will talk about the reversal pattern "Quasimodo" or QML. Schematically it looks like this: The price moves in the trend, in POI the structure breaks and after that, the price can not update the previous HH and the downward movement continues (consider a schematic example). In this example, after the breakdown of the structure, the price reverses to soften and remove internal liquidity, after which a reversal occurs. This is done in order to close a losing position at the expense of those who put their stop losses behind the maximum of the substructure. There are many names for this pattern, such as three tap setup, but I'm more accustomed to calling it quasimodo. If you like, it's a reworked version of the "head and shoulders" pattern, but in this case you're focusing on the price action instead of the picture. Criteria for QML formation 1. Use it in HTF POI 2. Watch HTF POI 3.Watch the price action. 4. Premium or Discount zone To use the pattern effectively, you must analyze the chart of all TFs. And use the pattern as an entry model. For example, the daily TF is bearish. The price is in the premium zone, as well as on the H1 TF began an uptrend, a full of bullish trend in the lower TF, after which we see that the substructure (red) has changed from a rising to a descending. And thus, we expect a continuation of the downtrend. Important Don't use this pattern in terms of "drawing". They can draw anything on the chart. I recommend to look for POI in POI of higher TFs. An additional factor could be substructure fluctuations before FWG or OB. You need to see how the price behaves after their update. Where to put a stop loss The first option is a stop-loss for a local FVG/OB The second - above swing high of substrucutre Third - above the HTF point of interest, if your RR allows it EXAMPLE After updating the all-time high, the daily structure was broken. Then price consolidated, it was worth waiting for the manipulation. It was possible to enter from HTF POI - aggressive entry, but it was possible to wait for confirmation on the LTF (as I do). I'm expect bullish OF on 4H chart to HTF POI (2D ob) This "entry into position" is shown as an example, so that you can form an understanding of how to act in this or that situation. In conclusion, the more factors you take into account in your analysis, the higher the probability of working out of the pattern. Also, it's up to you to choose what kind of stop loss you will use. There is no right and wrong, everything depends on your strategy and money management. The position was opened after the second liquidity raid in the premium market. I hope it was helpful to you. Thank you for your attention
Education
by Patronofbargain
EG short?EG SHORT 01/July/19 My analysis is based 90% on Technicals (TA) and 10% fundamentals. it's adamant to understand that both parties are in the losing position in regards to the geopolitical turmoil happening inside the EU council and UK parliament, both are losing out. Fundamentally concluding that this pair can swing both ways impulsively, as history dictates. TA #EURGBP - daily chart: the price is currently at a descending channels resistance level at 0.89740 (the channel formed since the highest price in August 2017 @0.92470) RSI showing weakening momentum and also showing signs of divergence (signifies reversal may be due) Since the impulsive drop from Dec 2018 to the current support level, at the lowest yearly price 0.83521, EURO has been regaining its strength. It looks like it’s due for correction following the rise, AND it’s already made its bearish move with a DAILY ENGULFING candlestick. BUT, on weekly it’s not clear that the bears have started taking control, we are seeing a bearish evening star, however, weekly bearish price action is needed to confirm. Based on Daily we can speculate a devaluation of EUR in favour of GBP. EURGBP DOWN SCENARIO: Short at current price 0.89310 SL 0.9000 just below yearly resistance (retested 4 times) to let room for the trade to ‘breathe’ TP1 (mirror level) 0.88440 TP2 (support/resistance FLIP ZONE) 0.87010 OR Wait for price to break below hourly resistance 0.89290, with either ENGULFING or other price action, and get in on the retest OR Sometimes we can only plan so much, the market moves where it wants to move, so an alternate scenario would be LONG EG if bullish engulfing candle breaks the current daily resistance (doubtful). Get in on the retest TARGET: min 150 pips up to 500 pips ESTIMATED TIME: 7-30days Do you agree? Let's discuss :D Goodluck IDEA IS SOLEY FOR EDUCATION AND RECORD KEEPING (USE AT OWN DISCRETION)
Education
by Suz_A4002