Quasimodo Pattern Strategy Back Test [TradingFinder] QM Trading🔵 Introduction
The QM pattern, also known as the Quasimodo pattern, is one of the popular patterns in price action, and it is often used by technical analysts. The QM pattern is used to identify trend reversals and provides a very good risk-to-reward ratio. One of the advantages of the QM pattern is its high frequency and visibility in charts.
Additionally, due to its strength, it is highly profitable, and as mentioned, its risk-to-reward ratio is very good. The QM pattern is highly popular among traders in supply and demand, and traders also use this pattern.
The Price Action QM pattern, like other Price Action patterns, has two types: Bullish QM and Bearish QM patterns. To identify this pattern, you need to be familiar with its types to recognize it.
🔵 Identifying the QM Pattern
🟣 Bullish QM
In the bullish QM pattern, as you can see in the image below, an LL and HH are formed. As you can see, the neckline is marked as a dashed line. When the price reaches this range, it will start its upward movement.
🟣 Bearish QM
The Price Action QM pattern also has a bearish pattern. As you can see in the image below, initially, an HH and LL are formed. The neckline in this image is the dashed line, and when the LL is formed, the price reaches this neckline. However, it cannot pass it, and the downward trend resumes.
🔵 How to Use
The Quasimodo pattern is one of the clearest structures used to identify market reversals. It is built around the concept of a structural break followed by a pullback into an area of trapped liquidity. Instead of relying on lagging indicators, this pattern focuses purely on price action and how the market reacts after exhausting one side of liquidity. When understood correctly, it provides traders with precise entry points at the transition between trend phases.
🟣 Bullish Quasimodo
A bullish Quasimodo forms after a clear downtrend when sellers start losing control. The market continues to make lower lows until a sudden higher high appears, signaling that buyers are entering with strength. Price then pulls back to retest the previous low, creating what is known as the Quasimodo low.
This area often becomes the final trap for sellers before the market shifts upward. A visible rejection or displacement from this zone confirms bullish momentum. Traders usually place entries near this level, stops below the low, and targets at previous highs or the next resistance zone. Combining the setup with demand zones or Fair Value Gaps increases its accuracy.
🟣 Bearish Quasimodo
A bearish Quasimodo forms near the top of an uptrend when buyers begin to lose strength. The market continues to make higher highs until a sudden lower low breaks the bullish structure, showing that selling pressure is entering the market. Price then retraces upward to retest the previous high, forming the Quasimodo high, where breakout buyers are often trapped.
Once rejection appears at this level, it indicates a likely reversal. Traders can enter short near this area, with stop-losses placed above the high and targets near the next support or previous lows. The setup gains more reliability when aligned with supply zones, SMT divergence, or bearish Fair Value Gaps.
🔵 Setting
Pivot Period : You can use this parameter to use your desired period to identify the QM pattern. By default, this parameter is set to the number 5.
Take Profit Mode : You can choose your desired Take Profit in three ways. Based on the logic of the QM strategy, you can select two Take Profit levels, TP1 and TP2. You can also choose your take profit based on the Reward to Risk ratio. You must enter your desired R/R in the Reward to Risk Ratio parameter.
Stop Loss Refine : The loss limit of the QM strategy is based on its logic on the Head pattern. You can refine it using the ATR Refine option to prevent Stop Hunt. You can enter your desired coefficient in the Stop Loss ATR Adjustment Coefficient parameter.
Reward to Risk Ratio : If you set Take Profit Mode to R/R, you must enter your desired R/R here. For example, if your loss limit is 10 pips and you set R/R to 2, your take profit will be reached when the price is 20 pips away from your entry point.
Stop Loss ATR Adjustment Coefficient : If you set Stop Loss Refine to ATR Refine, you must adjust your loss limit coefficient here. For example, if your buy position's loss limit is at the price of 1000, and your ATR is 10, if you set Stop Loss ATR Adjustment Coefficient to 2, your loss limit will be at the price of 980.
Entry Level Validity : Determines how long the Entry level remains valid. The higher the level, the longer the entry level will remain valid. By default it is 2 and it can be set between 2 and 15.
🔵 Results
The following examples show the backtest results of the Quasimodo (QM) strategy in action. Each image is based on specific settings for the symbol, timeframe, and input parameters, illustrating how the QM logic can generate signals under different market conditions. The detailed configuration for each backtest is also displayed on the image.
⚠ Important Note : Even with identical settings and the same symbol, results may vary slightly across different brokers due to data feed variations and pricing differences.
Default Properties of Backtests :
OANDA:XAUUSD | TimeFrame: 5min | Duration: 1 Year :
BINANCE:BTCUSD | TimeFrame: 5min | Duration: 1 Year :
CAPITALCOM:US30 | TimeFrame: 5min | Duration: 1 Year :
NASDAQ:QQQ | TimeFrame: 5min | Duration: 5 Year :
OANDA:EURUSD | TimeFrame: 5min | Duration: 5 Year :
PEPPERSTONE:US500 | TimeFrame: 5min | Duration: 5 Year :
RTM
Three Drive [TradingFinder] 3 Drive Harmonic Pattern Indicator🔵 Introduction
The "Three Drive" pattern is one of the light "RTM" setups suitable for identifying price trend reversals. For this reason, this pattern is considered one of the "Reversal Patterns."
🟣 Bullish 3 Drive
At a price bottom, a formation occurs where the negative trend appears to continue, and lower lows are made.
However, the second low penetrates the range of the first low, and the third low penetrates the range of the second low, indicating a decrease in selling pressure and an increase in buying pressure.
Entry point is issued after the penetration of the third low to the second low, and targets are the highs formed in the "3 Drive."
🟣 Bearish 3 Drive
At a price top, a formation occurs where the positive trend appears to continue, and higher highs are made.
However, the second high penetrates the range of the first high, and the third high penetrates the range of the second high, indicating a decrease in buyers' strength and an increase in sellers' strength.
Entry point is issued after the penetration of the third high to the second high, and targets are the lows formed in the "3 Drive."
Importance :
This pattern bears a striking resemblance to the some of "Harmonic Pattern" and "Ending Diagonal" in the "Elliott Pattern".
🔵 How to Use
There is no need for further confirmation to use this pattern, and you can use it as soon as the pattern forms. However, to reduce errors, it is better to use this pattern when it forms within a "Supply and Demand" or "Support and Resistance" structure.
Bullish 3 Drive in Demand Zone :
Bearish 3 Drive in Supply Zone :
🔵 Settings
You can set your desired "Pivot Period" via settings for the indicator to identify setups based on it.
QM Signal [TradingFinder] Quasimodo Pattern - Head and Shoulders🔵 Introduction
One of the patterns in "RTM" is the "QM" pattern, also known as "Quasimodo". Its name is derived from the appearance of "Hunchback of Notre-Dame" from Victor Hugo's novel. It is a type of "Head and Shoulders" pattern.
🔵 Formation Method
🟣 Upward Trend
In an upward trend, the left shoulder is formed, and the price creates a new peak higher than the left shoulder peak . After a decline, it manages to break the previous low and move upward again. We expect the price to return approximately between and to form the "QM" pattern.
🟣 Downward Trend
In a downward trend, with a price decline, a new valley is created, forming the left shoulder, and the price forms a new valley lower than the left shoulder valley . After a price increase, it manages to break the previous high and move downward again. We expect the price to return approximately between and to form the "Quasimodo" pattern.
Note: The "QM" pattern is a specific type of head and shoulders pattern in which in the first move, the previous support is broken and it's the best condition for price reversal.
🔵 Entry Conditions for "Buy" and "Sell"
🟢 Buy
Buy Position : When a complete "QM" pattern is formed in a downtrend; we expect the price to reach the left shoulder area (with confirmation) during the retracement to enter the "BUY" position.
Profit Target in Buy Scenario : Expecting a move to the peak that broke it and the highest point in the current "Swing".
Stop Loss : Below the "Head," which is the lowest point.
🔴 Sell
Sell Position : When a "QM" pattern is formed in an uptrend, we look for entry into the "Sell" position as the price retraces to the left shoulder area.
Profit Target in Sell Scenario : Expecting a move to the price floor that has been broken and the entire "Swing" or .
Take Profit : Above the highest point or above the area will be the "SL" region.
Note : Certainly, no method alone guarantees trading capability and requires different confirmations. This indicator only detects the "QM" pattern, and the rest of the analysis will be the responsibility of the user.
Note : These profit and loss limits are based on market movements and will be provided as approximate and supportive.
Impactful pattern and candles pattern AlertThe Alertion indicator!
impactful pattern:
pattern that happen near the zone or in the zone at lower timeframe and give us entry and stop limit price.
It is helpful for price action traders and those who want to decrease their risk.
There are 3 IP patterns:
Quasimodo
Head and shoulder
whipsaw engulfing
These patterns may occur near the zone or may not occur but by them, you can decrease your trading risk for example you can
trade with half lot before IP pattern and enter with other half after pattern.
how to use?
for example:
you find zone at 1h timeframe for short position
when price enter to your zone
you run this indicator and choose your lower timeframe, for example 15m and click on short position.
Then make the alert by right-click on your chart and choose the add alert and at condition box choose the impactful pattern and then click on create
now wait for message :)
Candles pattern:
like reversal bar, key reversal bar, exhaustion bar, pin bar, two-bar reversal, tree-bar reversal, inside bar, outside bar
these occur when the trend turn, so it is usable when the price enter to your zone or near your zone.
This pattern can decrease your risk.
Inside bar and outside bar:
if this pattern engulf up, it is bullish pattern and if engulf down, it is bearish pattern.
what does this indicator do?
this indicator is for making alert
it helps you to decrease your risk and failure.
You optimize it to alert you when IP pattern happen or candle pattern happen or inside bar or outside bar engulfing or all of them.
For IP pattern, it will message you entry and stop limit price.
It works at 2 different timeframes, so you can make alert for example in 1h TF for candles pattern and 15m TF for IP pattern.
Indicator will alert you for candles pattern at your chart timeframe and for IP pattern at timeframe you've chosen when you run the indicator, and it is changeable
in setting.
setting options
TIMEFRAME
IP: select the timeframe for IP patterns it means when IP pattern happen at that timeframe the indicator will alert you
example = your TF is 1h, you found the supply zone and want to trade, note that IP pattern happen in lower TF, so you select 15m TF or TF lower than 1h.
Short position: select it if you want to make short position.
BUFFERING
indicator send you entry and stop limit price
you can change it by amount of percent
it is your strategy to change your entry and stop loss or not
example= in head and shoulder pattern at short position, the stop limit is high price of head in pattern
so the indicator will message you the exact price but if you want to put
your stop limit 5 percent upper than exact price you can enter 5 in front of stop loss
or you want to enter 5 percent lower than exact high price of shoulder, you can optimize it.
ALERTION
you choose what alert you want
IP alert or candle alert or inside and outside bar alert
type your text for alert
you can write additional text for your message
ADVANCE
IP alert frequency option:
1. Once per bar : indicator will alert you for IP pattern once at your chat timeframe bar, and you should wait til next bar for next alert.
2. Once per bar close : alert you when your chart timeframe bar closed and next alert will happen when next bar is closed.
3. All: alert you all the times IP pattern happen
pivot left and right bars: lower will find smaller pattern
at the END:
this indicator is not strategy
it is part of your strategy that help you to increase your winning rate.
It is helpful for scalping and candle patterns finding.
After you make an alert, you can delete the indicator or change your timeframe or make another alert, your previous alert won’t change.
Thank you all.
Price ActionFirst, you have to know price action, RTM price action Handbook could help you
this indicator shows you base and momentum candles
base candles could be zones of trade that show you fighting of bulls and bears, and momentum candles could show the power of those zones.
Base candles are white in the chart, and you can place your order at the good zone.
Rally candles and drop candles are momentum candles, and bold rally and bold drop show that it is more powerful than its before candle.
Zigzag compression is one way that shows the compression in trend.
it looks like the Wedges pattern at classic technical that shows pending orders are closed, so the target zone could be powerful to reverse the trend.
Black background of candle means that candle doesn't reach its before candle and so it is poor candle, I named it domination.
It is better to do not trade at poor candles.
At the end, I find Price action the best way to trade, and it makes you free of other indicator, even volume indicator.
This indicator is good for those who use price action strategy to trade and those who want to learn the price action.
It could be so helpful and reliable way to find the zones, and place buy or sell order and the target, specially for scalping.
