Quasimodo Trading Strategy (Spot Reversal patterns in 2024)

The Quasimodo Trading Strategy identifying key levels of support and resistance, allowing traders to enter and exit positions with precision timing. we’ll explore the ins and outs of the Quasimodo Trading Strategy and how it can be used to enhance Price Action Chart Patterns your trading results.

What is The Quasimodo Trading Strategy?

The Quasimodo pattern is a technical analysis strategy that looks for reversal points in the market. Second, you will need to use a longer time frame chart ABCD Chart Pattern in order to see the Quasimodo pattern more clearly. Once you have identified a Quasimodo pattern, you should enter your trade at the break of the neckline.

To trade the Quasimodo pattern, you need to identify the following four points on a price chart:

1. The high point of the hump (point A)
2. The lowest point of the hump (point B)
3. The breakout point (point C)
4. The target point (point D)

Here’s how those points look on a chart:

How do I trade Quasimodo?

The Quasimodo trading strategy is a price action based strategy that looks for buy and sell signals around support and resistance levels. The strategy Pivot Point Strategy uses the following indicators:

• A Quasimodo pattern on the candlestick chart
• The Relative Strength Index (RSI)
• The Stochastic Oscillator

Quasimodo Pattern trading Strategy PDF

When these indicators line up, it creates a powerful signal that can be used to enter or exit a trade.

Here’s how the Quasimodo trading strategy works:

The first step is to identify a Quasimodo pattern Alligator Indicator Settings on the candlestick chart. This pattern consists of a long upper shadow, small body, and long lower shadow.

This indicates that there was significant buying pressure at the open, followed by selling pressure that pushed the price lower. However, buyers stepped in and fought back, pushing the price higher by the close.

Quasimodo Price action PDF

The next step is to look at the RSI and stochastic oscillator to confirm the signal. The RSI should be above 50 and rising, while the stochastic oscillator should be above 20 Stochastic Divergence and rising. If both of these conditions are met, then it’s a confirmation that buyers are in control and you can enter a long trade.

There are many benefits to using the Quasimodo trading strategy, but some of the most notable ones include:

• It is a very accurate trading strategy.
• It is easy to learn and use.
• It can be used in any market condition.
• It produces consistent profits.

Quasimodo Pattern Trading Rules

The Quasimodo trading rules for sell signals can follow as:

1. A prevailing uptrend needs to be visible – a series of HH followed by a series of HL.
2. Break in the market structure – price starts to make lower lows LL.
3. Place a sell order near the right shoulder.
4. Hide the protective stop-loss above the last higher high HH.
5. Take profit near the first valley of the Quasimodo chart pattern.

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