GBP/USD: Quasimodo pattern, what's next?
Updated
Hey guys,
I thought I'd share a small trade I took this morning.
As you can see on my chart, a high was formed on M15 followed by a low, then a lower high and a lower low.
The idea is to wait until the lower high is broken and watch for a pullback to our level of interest (=retest in the demand zone) which is the area between the left shoulder and the lower low (as highlighted in orange in my chart).
Quasimodo patterns can be very powerful in the sense that they provide very good risk reward ratios with limited risks. In this case, the R/R is above 4.5.
I entered long as soon as I saw several bullish pinbars suggesting buyers were in control.
My stop loss is a couple of pips below the lower low.
My target is at the next supply level around 1.28.
Trade at your own risk
I thought I'd share a small trade I took this morning.
As you can see on my chart, a high was formed on M15 followed by a low, then a lower high and a lower low.
The idea is to wait until the lower high is broken and watch for a pullback to our level of interest (=retest in the demand zone) which is the area between the left shoulder and the lower low (as highlighted in orange in my chart).
Quasimodo patterns can be very powerful in the sense that they provide very good risk reward ratios with limited risks. In this case, the R/R is above 4.5.
I entered long as soon as I saw several bullish pinbars suggesting buyers were in control.
My stop loss is a couple of pips below the lower low.
My target is at the next supply level around 1.28.
Trade at your own risk
Note
Taking partial profits on this tradeNote
Another Quasimodo on NZD/JPY which occurred a few days ago. As you can see, the pattern is pretty accurate and powerful! Trade closed: target reached
Nice trade! 100+ pips for this one
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