🔵 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 [HEAD]. After a decline, it manages to break the previous low [CHOCH] and move upward again. We expect the price to return approximately between [HEAD] and [Left Shoulder] 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 [HEAD]. After a price increase, it manages to break the previous high [CHOCH] and move downward again. We expect the price to return approximately between [HEAD] and [Left Shoulder] 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 [TP1] and the entire "Swing" or [TP2].
Take Profit: Above the highest point or above the [Head] 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 [Market Structure] and will be provided as approximate and supportive.
hi boss..can you adjust and include the alert notification. esp whne the qm setup is comfirmed. much appreciated. thank you
TFlab
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@abebeckham, Hi Yes, all the scripts that need alerts will be updated in the coming weeks.
Indyan
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Many thanks for publishing QM script. could u please make it as swap same pattern only, when target is engulfed it will become a swap zone.
This script just need some mod. like when target 2 is broken/engulfed, target 2 rename as swap and it will draw a box from entry and target 1 and second box from target 2 and last high/low which need to below HEAD
TFlab
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@Indyan, Hello Thank you very much for your attention Thank you, so that we can understand your meaning much better, send us your suggestions on the chart and the format of a photo in this comment.