quasimodo pattern indicator

February 7 2022

Quasimodo Trading Strategy

Kenn Forex forex trading, forex trading strategy, quasimodo, quasimodo chart pattern,
quasimodo pattern indicator, quasimodo strategy 0

Quasimodo Pattern

Quasimodo pattern is one of the trading patterns that traders love to trade. The strategy is not
based on indicators and therefore tends not to lag. The pattern can be used to identify areas
where the market is likely to turn around hence it’s used as a reversal indicator. Some people
view the Quasimodo pattern as being similar to the head and shoulder pattern.

The difference between the Quasimodo pattern and the head and shoulder pattern in that for
the Quasimodo, the valleys are not symmetrical while for the head and should pattern the
valleys are symmetrical. The two also have different entry techniques.
The pattern can be used to add more confluence to your trading. For example, if the pattern
forms at an area of support or resistance, it gives the trader more confidence to take the trade
since the chances of the trade working out are high.

The Quasimodo pattern can be used in all timeframes and in all asset classes. A point to note
is that on lower timeframes there may be a lot of noise leading to false signals and it’s hence
advised to trade the pattern from a H1 timeframe and above.

Quasimodo Pattern Trading rules

Bearish setup

• A prevailing uptrend needs to present. Market should have been making a series of
HH (higher highs) and HL (higher lows).
• Market then breaks structure by breaking a recent HL to form a LL (lower low). The
market starts to form LH (lower highs) and LL.
• Place your entry at the high of the left shoulder.
• Stop loss is placed above the last recent HH (Head of the pattern).
• Take profit 1 is placed at the most recent valley.
Bullish Setup

• A prevailing downtrend needs to present. Market should have been making a series of
LH (lower highs) and LL (lower lows).
• Market then breaks structure by breaking a recent LH to form a HH. The market starts
to form HH and HL.
• Place your entry at the low of the left shoulder.
• Stop loss is placed below the last recent LL (Head of the pattern).
• Take profit 1 is placed at the most recent peak.

Let’s look at some live examples.

Bullish Quasimodo setup

Bearish Quasimodo setup

Adding Confluence to Quasimodo

After strategy testing this pattern or trading it for a while, you realize that you may end up
with a lot of missed trades. Like any other strategy it’s not the holy grail of forex but can be a
powerful arsenal to use in your trading if paired up with the right confluences like Fibonacci.

You don’t need to make the trading complicated, all you need is the good old Fibonacci set at
levels of 0.5, 0.68, 0.786. Price doesn’t need to fully come back to the left shoulder.
Sometimes price may pull back further beyond the left shoulder. The Fibonacci levels paired
with support and resistance makes trading the Quasimodo pattern a highly profitable system
with sniper entries.