The overall trend here is a downtrend. I see a possible Quasimodo setup appearing.
Quasimodo setups are usually a trend reversal pattern. They occur when, in a downtrend for example, you have a low, followed by a local high, followed by a lower low, then by a higher high. Once making the higher high, if price retraces to the initial low of the pattern, you have a Quasimodo setup and entry point. Here, the pattern has been playing out over 53 days, but has yet to confirm as a Quasimodo. It's occurring at the bottom of the current downtrend. Therefore, it could be this downtrends reversal point. Personally, this isn't my favorite looking Quasimodo setup I've seen because of price nuking down out of the previous range before spiking up causing a need for a larger stop. It still returns a 3.17 R/R even with the large stop.
Purple box is where I'll be looking to place bids. If price smashes through the 9600 level, I'll also be looking to reopen a long position on the pullback of that move. Otherwise, it will get rejected there and that level will likely become the range high for right now.
If you found this idea interesting or helpful in any way, consider leaving a like or comment. Have a great day everyone!
Quasimodo setups are usually a trend reversal pattern. They occur when, in a downtrend for example, you have a low, followed by a local high, followed by a lower low, then by a higher high. Once making the higher high, if price retraces to the initial low of the pattern, you have a Quasimodo setup and entry point. Here, the pattern has been playing out over 53 days, but has yet to confirm as a Quasimodo. It's occurring at the bottom of the current downtrend. Therefore, it could be this downtrends reversal point. Personally, this isn't my favorite looking Quasimodo setup I've seen because of price nuking down out of the previous range before spiking up causing a need for a larger stop. It still returns a 3.17 R/R even with the large stop.
Purple box is where I'll be looking to place bids. If price smashes through the 9600 level, I'll also be looking to reopen a long position on the pullback of that move. Otherwise, it will get rejected there and that level will likely become the range high for right now.
If you found this idea interesting or helpful in any way, consider leaving a like or comment. Have a great day everyone!