Quasimodo Pattern QM MT4

What is the Quasimodo Pattern?

The Quasimodo Pattern, often referred to as the QM pattern, is a type of head and shoulders pattern. It derives its name from the hunchback character in Victor Hugo's novel, "The Hunchback of Notre-Dame." This pattern is known for its high reliability in indicating trend reversals, making it a favorite among traders who follow the Read The Market (RTM) concepts. The QM pattern can be identified in both upward and downward trends and is particularly useful for spotting potential reversals.

Formation Method

• Upward Trend: In an upward trend, the left shoulder is formed first. The price then creates a new peak higher than the left shoulder peak. After a decline, it breaks the previous low and moves upward again. The pattern completes when the price returns approximately to the left shoulder area.
• Downward Trend: In a downward trend, a new valley is created, forming the left shoulder. The price then forms a new valley lower than the left shoulder valley. After an increase, it breaks the previous high and moves downward again. The pattern completes when the price returns approximately to the left shoulder area.

Entry Conditions for 'Buy' and 'Sell'

• Buy Position: When a complete QM pattern is formed in a downtrend, the price is expected to reach the left shoulder area during the retracement. This is the entry point for a 'BUY' position. The profit target is the peak that broke the pattern, and the stop loss is set below the 'Head,' which is the lowest point.
• Sell Position: When a QM pattern is formed in an uptrend, the price is expected to retrace to the left shoulder area. This is the entry point for a 'SELL' position. The profit target is the price floor that has been broken, and the stop loss is set above the highest point.

Settings

• Lookback: The number of bars in history to calculate the indicator.
• Pivot Period: The length of the pivot point.
• Filter only QM at Swing Pivot Zone: If set to 0, the indicator will recognize any QM pattern. If set to a number greater than the pivot period, it will only identify patterns near the swing low or high.
• Color Settings: Customize the colors for better visualization.
• Notifications Settings: Enable or disable notifications for detected patterns.

Example: QM Pattern Scanner MT4

The QM Pattern Scanner for MT4 is a powerful tool that scans all charts with a single click. It provides stop loss, take profit, and entry point levels using Fibonacci levels and candlestick analysis. This indicator is user-friendly and does not repaint, ensuring reliable signals. Key features include:

• Detection of QM and Inverse QM patterns.
• Easy-to-use interface with no repainting.
• Scan all charts and select time frames for scanning.
• Displays notifications for stop-loss, take profit, and entry points.
• Uses Fibonacci levels for precise entry and exit points.

Conclusion

The Quasimodo Pattern is a robust tool for traders looking to capitalize on trend reversals. With the right settings and tools like the QM Pattern Scanner, traders can effectively identify and act on these patterns, increasing their chances of successful trades. So, get ready to spot those hunchbacks and make your trading journey a profitable one! 📈💰