As someone who’s spent years navigating the markets, I’ve come to appreciate the power of certain chart patterns in predicting price movements. One such pattern that’s worth your attention is the Quasimodo, often abbreviated as QML. In this guide, we’ll break down the Quasimodo chart pattern in simple terms, so whether you’re just starting out or you’ve been trading for a while, you’ll find it accessible and informative.
What is the Quasimodo (QML) Chart Pattern?
The Quasimodo chart pattern is a reversal pattern that signals a potential change in the current trend. If you’re familiar with trading, you know that identifying when a trend is about to reverse can be a game-changer. The QML pattern helps you spot these moments, especially when it forms near key support or resistance levels on higher time frames.
In essence, the pattern appears when the price makes a higher high and then a lower low at the end of an uptrend, or a lower low and then a higher high at the end of a downtrend. This shift indicates that the current trend might be weakening and a reversal could be on the horizon.
Why is the QML Pattern Important?
Understanding the QML pattern is crucial because it gives you a heads-up before the market shifts direction. By recognizing this pattern, you can position yourself to catch new trends early, which can lead to more profitable trades. It’s like getting advance notice that the tide is about to turn.
Types of Quasimodo Patterns
There are two main types of QML patterns:
- Bullish Quasimodo Pattern
- Bearish Quasimodo Pattern
Let’s explore each one.
1. Bullish Quasimodo Pattern
The Bullish QML pattern forms at the end of a downtrend, usually near a strong support level. In a downtrend, prices typically make lower lows and lower highs. But when the price hits a key support level and then makes a higher high—breaking above the previous lower high—it forms the Bullish QML pattern.
This pattern signals that the sellers are losing control and buyers are stepping in, indicating a potential shift from a downtrend to an uptrend.

How to Spot It:
- Lower Low (LL): The price dips to a new low.
- Higher High (HH): The price then rallies above the previous lower high.
Trading the Bullish QML Pattern:
- Identify the Pattern: Look for the downtrend where the price is making lower lows and lower highs.
- Mark the QML Zone: Highlight the area between the second-to-last low and the last low. This is your QML zone.
- Look for Confirmation: Check for other signs like demand zones or imbalances that support a bullish reversal.
- Enter the Trade: Consider buying when the price returns to the QML zone.
- Set Your Stop-Loss and Take-Profit: Place your stop-loss below the last low and aim for a take-profit at the previous high or higher.

2. Bearish Quasimodo Pattern
The Bearish QML pattern is the opposite and forms at the end of an uptrend, often near a significant resistance level. In an uptrend, prices make higher highs and higher lows. When the price reaches a key resistance level and then makes a lower low—breaking below the previous higher low—it forms the Bearish QML pattern.
This indicates that buyers are losing strength and sellers are taking over, suggesting a potential shift from an uptrend to a downtrend.

How to Spot It:
- Higher High (HH): The price reaches a new high.
- Lower Low (LL): The price then drops below the previous higher low.
Trading the Bearish QML Pattern:
- Identify the Pattern: Look for the uptrend with higher highs and higher lows.
- Mark the QML Zone: Highlight the area between the second-to-last high and the last high.
- Look for Confirmation: Search for supply zones or other bearish indicators.
- Enter the Trade: Consider selling when the price revisits the QML zone.
- Set Your Stop-Loss and Take-Profit: Place your stop-loss above the last high and aim for a take-profit at the previous low or lower.

Understanding the Basis of the QML Pattern
The QML pattern is based on the concept of “Change of Character” (CHOCH) in trading. CHOCH occurs when the price breaks important levels, signaling a potential trend reversal. While CHOCH focuses on structural highs and lows, the QML pattern sometimes indicates a reversal even before these key levels are broken. This makes it a valuable tool for traders looking to get ahead of market shifts.
Final Thoughts
The Quasimodo chart pattern is a powerful reversal signal that can help you anticipate market turns. By understanding and applying this pattern, you can enhance your trading strategy and potentially improve your results.
Remember, no pattern is foolproof. Always use proper risk management and consider combining the QML pattern with other analysis tools to confirm your trades.
Happy trading!
Frequently Asked Questions (FAQs)
The Quasimodo pattern is unique because it focuses on a higher high and a lower low occurring consecutively, indicating a potential trend reversal before the market breaks structural highs or lows. This can provide an earlier signal compared to other patterns that require a complete break of market structure.
Yes, the Quasimodo pattern can be applied to various time frames, from minute charts for day trading to daily or weekly charts for long-term trading. However, patterns on higher time frames tend to be more reliable due to the reduced impact of market noise.
Like any trading pattern, the Quasimodo isn’t 100% reliable on its own. Its effectiveness increases when used in conjunction with other analysis methods, such as identifying key support and resistance levels, observing market sentiment, and applying proper risk management.
Yes, it’s generally wise to wait for additional confirmation, such as a candlestick pattern, volume increase, or a market structure shift on a lower time frame. This helps reduce the risk of entering on a false signal.
Risk management is crucial. Always set a stop-loss order to limit potential losses. For the Bullish QML, place the stop-loss below the last low; for the Bearish QML, above the last high. It’s also important to define your take-profit levels and ensure that your risk-to-reward ratio justifies the trade.