Babak.Maserati
Long

Quasimodo Long Signal Pattern on bitcoin

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Quasimodo Long Signal Pattern

Easy guide to trading the "Quasimodo Pattern"

The Quasimodo Pattern or Over and Under pattern is a relatively new entrant to the field of technical analysis in the financial markets. Although new, the Quasimodo pattern is a commonly occurring theme that is more frequent when price carves a top or a bottom or when price begins a major correction to the trend.

The Quasimodo Pattern, although complex as it might seem is actually very simple. This trading pattern is especially powerful because when it occurs, in most cases, traders will notice a confluence with other methods of analysis.

For example, when a trader spots a Quasimodo pattern near a support or resistance level , it increases the confidence of the trader or the trading probability. Likewise, when trading divergences, when you spot a Quasimodo pattern, that confluence can be used to trade the divergence set up with more confidence.

As we can see from the above, the Quasimodo pattern is not a trading strategy by itself but is more of a confluence pattern that can be used to confirm a trader’s bias. Of course, the Quasimodo pattern doesn’t appear all the time, but when it does, traders can be sure that the market offers a high probability trade set up.

What is the Quasimodo (Over and Under) Pattern?
A Quasimodo Pattern is simply a series of Highs/Lows and Higher or Lower highs or lows.

There should be a prior downtrend in the markets
Price makes new low then makes a small rally and forms a local high
Price then declines to form a new lower low taking out the previous low
Price then rallies to make a new higher high and then declines
The final decline is equal to the first low


The fifth leg in this pattern is the trigger for long positions with stops set to at or below the lower low

TP1=8900$
TP2=11000$

SL=7000$
This is great; I think TP1 might be anywhere between 8600 and 8900 just below the top of the triangle (on log) when we get there. Your target is confirmed by how SP500 looks, which seems to be a couple of weeks ahead of BTC. It already founded a double bottom (our equivalent is around 7k) and went above all important MAs on daily (they're normally half the level of BTC's MAs but if we take that into account and apply to our levels, SP500 has just broken out and is at the level equivalent to BTC's ~11k.
Reply
d14b0ll0s d14b0ll0s
@d14b0ll0s, *found a double bottom, sorry
Reply
your work is a hidden gem. thanks for sharing. I am still not convinced tho. Because we missed the best chance to escape the bear market by failing to break 10k in the week leading to Consensus event. 200 SMA is about to peak in a few days which will make it even harder to start a big rally. see my last TA about when SMA 200 peaks. I see 8500ish, the giant triangle's top, as my bullish scenario's target.
Reply
big like
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out