The Quasimodo Zone

Hey guys ,

after visiting this forum yesterday again after some time and reading a nice thread i was inspired to open a new topic here about my favorit entry zone or structure or pattern or what ever you wanna call it …The Quasimodo…

Ive looked around a bit but couldnt find a thread about it so here i am with it …

You may know that ive come around in the past already with my Supply&Demand thread (Supply & Demand Trading System)
and my Price Action Thread (TruemanTrades Price Action)

This are 2 Important Pieces in trading everybody should be aware of (how to spot s/d zones ,how to spot s/r and flip zones , how to draw a trendline etc) and its a solid foundation to build up from.

In the last 1-2 years i learned how to spot an accurate entry zone in combination with the foundation i build up which offers a High RR Factor due to small to moderate SL´s .

The Zone or better called the structure i talk about is the Quasimodo Pattern/Structure .

To Understand this Pattern we need to understand the market structure which forms it …this is no rocketsience and pretty straight forward .

We can find this structure on every chart ,every time frame and every instrument its pure psychology.
I will not go into every detail yet cause i just wanna focus on the structure itself so u can pop up your charts and start to train your eyes to find it , see it , mark it …

So lets have a look at the structure i talk about :

Let me paint the picture with my words from left to right …

-We see an uptrend here with Higher Highs (HH) and Higher Lows (HL)
(at the top / our last HH. we often see a quick move up or a spike up taking out stops the so called stop Hunt // could be an old s/r zone for example)

-market starts to break its structure to the downside and forms a first Lower Low (LL)
-Price revisits the area around the HH before the last HH(or stop Hunt) took Place
-This is the area where we/I look for my entry / the first LH

the psychology behind it could be something like this :
-price rises like in the picture and goes straight to a resistance area for example
-alot of traders shorting at resistance(cause everybody "knows"when price hits resistance we go short )
-price spikes through resistance taking out the stops from everybody who was short already and placed it sl at the most logic place …above resistance
-big players or what ever we wanna call the big money has now more liquidity to enter some shorts after stops are taken
-we break market structure (last HL ) and below this structure we have again alot of stops placed from all the bulls (cause this is the comon place for your stops)
-price rises again from provided liquidity and offers another good entry price for “big money guys” at a higher area
just my thoughts …but let us not think about why something happens as long as it happens and we can take advantage of it …

long story short we or I look for HH followed by HL followed by HH followed by LL to find my entry zone…

Of course there will be losers as with every other methology as well …the key to success is the high RR factor and the ability to manage the trade in a good way .

as example if we take a average RR of 4:1 and a strike rate of 30% with 1% risk each trade we still make money here
7 losers = -7%
3 winners =+12%
overall gain 5%

here is a chart example for you and i will come up with other trades here from now and then …
hope you find some benefit for your own trading :slight_smile:

NZD USD h1

AUD CAD h1

Have fun and a greeeeen week …

6 Likes

here is another example for you … 2 trades on gold in 5 min chart …the blue box shows the quasimodo entry zone …
i was too lazy to lable it …thats your job if u wanna :wink:

For what it’s worth:

The humor is not lost in terming this the “Quasimodo Zone”.

There is a technical term for a double pull back (it escapes me now is all).

iam not father of the name ^^ call it what you want over under , return to origin , quasimodo , ugly heads n shoulders …what ever … its just about the market structure i showed here

and i dont talk about a "double pullback " you may try to read again my friend :wink:
… the gold trade is just coincidentally 2 set ups on top of each …

again its about a certain structure as u can read above … no rocketscience no new invention just simple trading
grafik

there you go if u wanna learn some more :wink:

2 Likes

Sorry. Assumed it was a clever name for places where arseholes get burned (stops get taken out).

No worries.

Carry on.

1 Like

^^ A rose by any other name would smell as sweet :wink: easy going …that was my reaction as well when i first heard that name

just a structure which can be observed at areas of confluence … in trend direction or as a reversal
and can be used to our advantage

2 Likes

I know you say this isn’t rocket science but… I’m just not seeing this at all. First, the pattern just looks like a head-and-shoulders but with a downwards-sloping neckline. Second, it looks like a bullish Wolfe Wave, so might be expected to run into a price move up that’s much more significant than the initial move down. And third, in any case, I can’t see how you define the lower boundary of the Quasimodo zone.

I’m a little bit lost here.

1 Like

hey tommor ,
let me explain :

“I know you say this isn’t rocket science but… I’m just not seeing this at all. First, the pattern just looks like a head-and-shoulders but with a downwards-sloping neckline”

yes its a variation of a SHS Pattern …but its ugly brother (quasimodo :wink: )
for a shs you typical trade the neckline break (big sl bad RR)…here we trade the pullback into a liquidity area (tight sl Big RR)

Second, it looks like a bullish Wolfe Wave, so might be expected to run into a price move up that’s much more significant than the initial move down

i heard about wolve waves but never traded something like this …its all about the stucture of price no matter how you call it … alot of shades of grey in trading :wink: …no black and white thinking (something like : there is no holy grail …alot of ways lead to the goal…this is one which works good for me )

“And third, in any case, I can’t see how you define the lower boundary of the Quasimodo zone.”

i draw the zone in 90% of the set ups by the last opposit candle of the HH before the Stop Hunt ( for short trades) and vice versa for long trades … again most important is the structure (the break in market structure showing a shift in direction no matter if long term or short term …it offers tight stops with big RR after sometime its easy to spot… it jumps straight to your eye… once seen u cant unsee

and i dont wanna force anyone to trade it i just wanna inspire a bit

again how i draw the zone :

After the Market Structure Break took Place the QM Entry Zone can be drawn in Its drawn by Marking the last Bullish candle of the Left Shoulder for Short Trades and the last Bearish Candle of the left Shoulder for Long trades Taking the whole Candle in consideration is one possibility to Draw in the QM Entry Zone but depending on willingness for risk it is also ok to take just the body or just the wicks of the particular candle for drawing the QM Entry Zone

example Pic :

hope you got me :slight_smile:

2 Likes

Fantastic explanation, thank you. I’m sorry, I’m dumb.

I’ve never traded Wolfe Waves either - I couldn’t understand them either.
:slight_smile:

asking questions is smart not dumb :wink:

LOL I call it head and shoulders pattern

LOL :rofl:
thanks for your constructive contribution you can surly call it what you want mate … as i said above its about the STRUCTURE not the name :wink:

maybe this makes it more clear …

see the differents for the potential SL …
for SHS sl would be below left shoulder …alot of pips from your entry on the breack of neckline…
for QM it would be also below left Shoulder but due to the fact that we enter on the pullback in a defined zone AFTER a break in STRUCTURE we have a big difference in RR factor

trading SHS gives me no confirmation when the pullback forming the right shoulder will hold and when not so iam not able to trade this pullback and need to stick to the break as confirmation…traded SHS along time and was not satisfied with the low RR on some stage so i looked for some methology to get me more R´s …this is what pushes my trading forward …

so in the end yes it is very similiar to a SHS but the small details are what makes a hugh difference …
:v:

I like it. The term quasimido is new to me, but this is very similar to how I trade an s/r bounce and re test.

1 Like

let em take stops and hunt for liquidity … structure is key :wink:

it makes me think about that sad Disney movie from back in the day with that hunchback

2 Likes

Dunno about sad. I thought it was funny!!! LOL!!!

now you got it ^^ …coming next : the esmeralda pattern :rofl:

2 Likes

gold long trade from today …2 possible entrys …i woke up late took the second one …almost missed it :wink:

1 Like

and a quick short on gold …time for some relax without charts …

So what is that quazimodo zone anyway ? Something like for example this shoping or sort of it where you have some not very fine angles and this is like opportunity for you to trade there or what really ? I do not see it earlier anyway. I do see it better though.

1 Like