Quasimodo (Over and Under)
BullishReversalAdvancedA lower low, then a higher high. Buy when price falls back to the left shoulder.
Verdict: CautionBitcoin 4H: 53 trades, won 64%, avg trade +1.2% vs random day +0.8%. Backtest
Price falls to a low, bounces to a high. That first low is the left shoulder. Keep your eye on it.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | Main swings: a low, a high, a lower low, then a higher high. Price falls back to within half an ATR of the first low (the left shoulder). Within 3 candles of touching it, a candle CLOSES above the previous candle's high. |
| Cancelled if | Price trades below the lower low or closes above the higher high before the entry, or doesn't reach the left shoulder within twice the pattern's length. |
| Target | To the higher high, projected from the breakout |
3 common mistakes
- Buying the break of the high. The Quasimodo entry is the pullback to the left shoulder.
- Using the wrong low: the level is the first low, before the lower low.
- Moving the stop up to the shoulder. The pattern is only wrong below the lower low.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 53 | 64% | +1.19% | +0.83% |
| US large caps (50) · 1D · 2016-2026 | 331 | 57% | +0.55% | +1.27% |
Verdict: CautionBeat a random entry in some markets, not in others.
pattern +63%random +44%
pattern +183%random +421%