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Quasimodo Pattern - Advanced Price Action Trading Concept 2024
Quasimodo Pattern - Advanced Price Action Trading Concept 2024
If you combine this pattern with your trading strategy, it increases your
trading odds & boosts your confidence level. It helps you to make better
decisions on time as well.
Many supply & demand traders use this pattern to identify the strong
tradable zones. When they find the Quasimodo pattern with strong
supply or demand zones, they execute the trade with greater confidence.
It provides a great Risk Reward ratio potential as well.
Quasimodo pattern does not appear all the time, but when this happens,
traders should not ignore it. It is one of the most reliable and powerful
patterns to trade.
Here, a significant drop has occurred in the market. The market makes
an obvious high and low consecutively. Then after making a Lower low it
shoot up and breach the high to make a higher high.
The space between the QML and MPL considered as a strong demand
Quasimodo zone. When price back to the zone our buy limit is triggered
and look how beautifully price retraced from the QML level. It starts to
go to our preferable direction.
Take your profit up to the next trouble area. Breached high or low should
be the minimum target area. 1:3 is a standard risk-reward ratio that can
be applied in this price action trading strategy.
Is Quasimodo Head & Shoulder Pattern?
Though Quasimodo looks like the Head & Shoulder Pattern, it is
distinctive from the typical Head & Shoulder Pattern.
So, all Quasimodo pattern is Head & Shoulder Pattern, but all Head &
Shoulder Patterns are not Quasimodo Pattern. To be a Quasimodo
pattern, It needs one extra “qualification” that required price to move
beyond a specified high or low to capture both buyers or sellers.
Is Quasimodo W/M Pattern?
The structure of Quasimodo consists of two engulfing, both up and
downsides. But the W/M formation consists of one engulfing up or
downside.
You can enhance your day trading strategies using this price action
pattern.
Bottom Line
Quasimodo or Over & Under Pattern is not one of the most popular
patterns among forex traders as it is a new entrant in the financial
analysis sector in the financial markets. Although new, it is one of the
most reliable and powerful patterns to trade. The Risk-Reward ratio
potential of this reversal pattern is also good.
Understanding the establishing trend is an important factor for forex
trading. Using the classical definition of higher highs and higher lows
versus lower lows and lower highs is the right step to follow. If you do
so, you can easily identify the Quasimodo pattern, even though you are a
novice trader. No Quasimodo pattern scanner or indicator is needed to
look for it. Your nacked eye is enough to spot Quasimodo Pattern in the
chart and to boost up your confidence to execute the trade efficiently.
This confluence price action pattern can flourish your overall supply and
demand trading strategy.