Quasimodo Pattern: Advanced Price Action Trading Concept

[CJ-TradingFloor]

Quasimodo pattern formation in my opinion is definitely one of the most reliable and powerful pattern to trade. It’s a reversal pattern that provides a great risk reward ratio potential and is used in technical analysis to predict the change of trend.

I posted a Dow buy trade which presented a bullish Quasimodo pattern and I took advantage of the setup on a 4 hour chart, this was a highlight trade for me and thought to share the Quasimodo pattern recap. 

To increase the probability of this pattern is by adding confluences. The following are the necessary confluences to add, that I do make use of:

• Supply and demand zone.
• Trend analysis.
• Higher timeframe analysis.

 

Entry day: My view on 4hour chart was when Dow was near record reversal for bullish hopes. The reversal setup looked like a bullish Quasimodo chart pattern had formed for the Dow to buy.

 

 

News day: The trade ranged and traded sideways for a while before CPI event day which I expected. On CPI event day, trade was very close to be taken out but US CPI pushed Dow up, volatile event.

 

After the US CPI event I was monitoring 30 500 level for the break upwards.

 

TP reached!!!

HL - Higher Low, LL - Lower Low, HH - Higher High, LH - Lower High

 

After TP reached: Dow has traded higher in November

 

Bullish and bearish trend reversal pattern examples to look out for.

 

 

Conclusion:

As we can see from the above, the Quasimodo pattern is a relatively simple pattern, which when used in conjunction with other trading strategies offers a great way to increase the probability of a trade set up.

 

 

[MongiIG]

On 10/11/2022 at 14:38, CJ-TradingFloor said:

To increase the probability of this pattern is by adding confluences. The following are the necessary confluences to add, that I do make use of:

• Supply and demand zone.
• Trend analysis.
• Higher timeframe analysis.

Interesting thanks for sharing @CJ-TradingFloor

[CJ-TradingFloor]

5 hours ago, MongiIG said:

Interesting thanks for sharing @CJ-TradingFloor

Supply and demand zones are a popular analysis technique and I like to use them for day trading.

Trend analysis I make use of 200 SMA.

Higher timeframe analysis on 4-hour and1D charts.