QML: Quasimodo
Also known as: QML, Quasimodo level, over and under pattern, QM pattern
What is it?
Quasimodo is a reversal pattern where an uptrend makes one final higher high, then breaks below the prior swing low - the sequence that says the trend's structure has failed even though the last high looked strong. Read it as five points. Price makes a high, a low, a higher high, then drops through that intervening low to make a lower low, and finally rallies back to the level of the left shoulder.
That return is the Quasimodo level - the entry - and it usually sits well below the final high, so the setup lets you sell into a bounce rather than chase the break. On GBP/USD, a rally to 1.2748, a pullback to 1.2694, a higher high at 1.2772 and then a break to 1.2661 sets the QML at 1.2748, where a short would be placed with the stop above 1.2772. The pattern is a head-and-shoulders with a broken neckline, described from the entry's point of view rather than the shape's.
What gives it teeth in an ICT reading is that the final higher high usually sweeps a pool of stops before failing - so the structure break is not just a failed high, it is a failed high that collected liquidity first.
Why it matters: Quasimodo marks the point where a trend's structure has failed and offers an entry on the retrace rather than on the break, which tightens the risk.
It calls a trend reversal and places the entry against the prevailing direction, so a false read means trading directly into a continuing trend.
Real-world example
GBP/USD ran to 1.2772, broke the 1.2694 swing low down to 1.2661, then rallied back to the 1.2748 Quasimodo level - a short there risked 24 pips to the 1.2772 high.
How SignalBots handles it
SignalBots states the structure level a reversal signal is built on, so you can confirm the swing break on your own chart before taking the counter-trend side. See /risk-warning.
Pro tip
Require the break of the prior swing low to close beyond it, not just wick through - an unclosed break leaves the trend structure technically intact.
Common pitfalls
Entering at the Quasimodo level before the structure break has happened, which turns a reversal setup into a plain bet against an intact trend.
Frequently asked questions
How is Quasimodo different from head and shoulders?
It is the same shape read differently. Head and shoulders names the pattern; Quasimodo names the specific entry level - the left shoulder price - that you sell the retrace into after the neckline breaks.
Where exactly is the Quasimodo level?
At the high of the left shoulder, the swing high that came before the final higher high. Price returning to it after the structure break is what creates the entry.
Where does the stop go?
Above the final high - the head. That is the last price the pattern says should not be exceeded, and a move beyond it means the reversal read has failed.
Does the pattern work in both directions?
Yes. The bullish version mirrors it: a final lower low, a break above the prior swing high, then a drop back to the left shoulder low as the entry. The logic is identical with the signs reversed.
How reliable is it?
It is a structure read, not a probability figure, and reliability depends heavily on where the pattern forms - one at a higher-timeframe level is a very different proposition from one in the middle of a range. No pattern removes the risk to your capital.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
