Only one patter to trade for life which is Quasimodo . Trading strategy for life

 

Forex Analysis · Price Action · Trading Education The Quasimodo pattern (often shortened to QM pattern) is one of the most talked-about reversal setups in price action trading — yet it's also one of the most misunderstood. Traders confuse it with Head and Shoulders, misplace the entry, or jump in without waiting for confirmation. This guide breaks down exactly what the QM pattern is, how to spot it on a chart, and how to trade it with clear entry, stop-loss, and take-profit rules. What Is the Quasimodo Pattern? 

   

The Quasimodo pattern is a reversal structure that signals a potential shift in trend direction — from an uptrend into a downtrend (bearish QM), or from a downtrend into an uptrend (bullish QM). It gets its name from the hunchbacked character in Victor Hugo's The Hunchback of Notre Dame, because of its lopsided, asymmetrical shape on the chart. It's frequently compared to the classic Head and Shoulders pattern, and the two do share family resemblance — both are built from a sequence of swing highs and lows. 

The key difference is the "neckline": in a Head and Shoulders pattern, the neckline connecting the two troughs (or peaks) is roughly horizontal. In a Quasimodo pattern, that line is angled, because the pattern isn't symmetrical the way Head and Shoulders is meant to be. How the Bearish QM Pattern Forms A bearish Quasimodo pattern appears near the top of an uptrend, when buying pressure starts to run out of steam. The sequence typically looks like this: Bearish Quasimodo QM pattern diagram showing left shoulder, head, break of structure, and QML sell zone The bearish QM pattern: Left Shoulder → Head → Break of Structure → Retest QML → Reversal Down. Left shoulder: Price makes a swing high, then pulls back. Head: Price rallies again and prints a new, higher high — stronger than the left shoulder. Break of structure: Instead of holding, price reverses hard and breaks below the prior swing low, invalidating the uptrend structure. 

This sharp move often sweeps stop-losses and traps late buyers — commonly referred to as a liquidity grab. Right shoulder (Quasimodo Level): Price retraces back up toward the level of the original left shoulder. This zone is the QML (Quasimodo Level) — the key area traders watch for a short entry.

 Once price reaches the QML and shows signs of rejection (a wick, a bearish candle close, or a slowdown in momentum), that's the signal traders are looking for. How the Bullish QM Pattern Forms The bullish version works in mirror image, appearing near the bottom of a downtrend: Bullish Quasimodo QM pattern diagram showing right shoulder, head, break of structure, and QML buy zone The bullish QM pattern: Right Shoulder → Head → Break of Structure → Retest QML → Reversal Up. Right shoulder (first low): Price makes a swing low, then bounces. Head: Price falls again and prints a new, lower low. Break of structure: Price reverses and breaks above the prior swing high, sweeping liquidity resting above that level and trapping late sellers. Left shoulder (Quasimodo Level): Price pulls back down to the level of the earlier high, which now becomes the QML — the zone traders watch for a long entry. Entry, Stop-Loss, and Take-Profit Rules

 One of the reasons traders like the QM pattern is that it gives fairly precise rules for risk management: Entry: For a bearish QM, enter short once price retraces into the QML zone and shows rejection. For a bullish QM, enter long once price retraces into the QML zone and shows a bullish reaction. Stop-loss: Place your stop just above the head (for a short) or just below the head (for a long) — if price breaks that level, the pattern is invalidated. Take-profit:

 A common approach is targeting the most recent swing low (for shorts) or swing high (for longs), or using a fixed risk-to-reward ratio such as 1:3. QM Pattern vs Head and Shoulders: Key Differences Neckline shape: Horizontal in Head and Shoulders; angled in Quasimodo. Entry timing: QM traders often enter directly at the shoulder retest (the QML); Head and Shoulders traders typically wait for a confirmed neckline break instead. Symmetry: Head and Shoulders is built around visual symmetry; the QM pattern is intentionally lopsided and relies more on structure and liquidity behavior than on a clean mirrored shape. Tips for Trading the QM Pattern Effectively Use higher timeframes for reliability. The pattern appears on every timeframe, but setups on higher timeframes (H4, Daily) tend to be more dependable than those on very short timeframes. Look for confluence. 

A QML that lines up with a supply/demand zone, a Fibonacci retracement (50%–61.8%), or a fair value gap adds extra weight to the setup. Wait for rejection, don't anticipate it. Jumping in before price actually reacts at the QML is one of the most common mistakes — let the candle close confirm it first. Respect the invalidation level. If price breaks through the head, the setup is off — don't hold on hoping it reverses again. Common Mistakes to Avoid Confusing the QM pattern with Head and Shoulders and applying the wrong entry rule. Trading every QM shape you see without checking for confluence or higher-timeframe context. Placing stops too tight, right at the QML, instead of beyond the head where the setup is genuinely invalidated. Ignoring overall market trend and news events that can override the pattern. Key Takeaways The Quasimodo pattern is a reversal setup identified by a shoulder, a head (a stronger new extreme), a break of structure, and a retest of the shoulder level (the QML).

The Live trade taken below is a prime example of what are the prime parameters of Bearish Quasimodo. We have a big retracement followed by hesitation to leave the pattern when price makes a new high. Price get back to that level and create a failed swing. Which is great sign of potential reversal after engulfing the last flag which I market as A. Check the engulf and trying to play with a level and final meltdown . Price spike with testing the supply as SR flip and big rejection from there gets good confidence that real supply is lying ahead and finally when it test the real supply of Flag price retreats to that flip zone targeting good risk to reward. 

Live trade August 12th 2026 Asian Session

 It resembles Head and Shoulders but has an angled neckline and different entry logic — QM traders enter at the shoulder retest rather than waiting for a neckline break. Stops go beyond the head; targets are typically the prior opposing swing point or a fixed risk-to-reward ratio. Confluence with supply/demand zones, Fibonacci levels, or fair value gaps improves the odds of a valid setup. This article is for educational purposes only and does not constitute financial advice. Trading carries risk of loss — always use proper risk management and combine any pattern with your own analysis.

How to trade support resistance and flips in Forex and commodities

GBP/USD price action chart showing support resistance zone flip and projected breakout pattern GBP/USD chart highlighting the flipped support/resistance zone and a projected reaction pattern.

Understanding support and resistance flips is one of the most reliable ways to read forex price action — and the GBP/USD chart above is a textbook example of exactly this concept in play. In this article, we break down what a support/resistance flip is, why it matters, and how the projected pattern on this chart illustrates a classic technical analysis setup. 

 What Is a Support-Resistance Flip? In forex technical analysis, support is a price level where buying pressure has historically stepped in to stop a decline, while resistance is a level where selling pressure has capped a rally. 

A “flip” happens when one of these levels changes roles — a broken support level starts acting as resistance once price returns to it, or a broken resistance level becomes new support after a breakout. This happens because of trader psychology: once a level is broken, the traders who bought at that level (expecting support to hold) are now trapped in losing positions. When price retests that level from below, many of them sell just to break even — turning old support into a resistance shelf. The reverse logic applies when resistance flips into support after an upside breakout. Reading the Chart: The Zone in Focus On the chart, the shaded gray box marks a consolidation zone where price traded sideways before breaking down. This zone previously acted as a demand area (support) — price had bounced from it more than once. Once price broke below this range, that same zone became a supply area (resistance), which is exactly what the highlighted horizontal line marks: the level where a retest and rejection would be expected if the flip is valid.

Below that, the thicker blue horizontal line marks a major structural support level — a zone where price found strong buying interest previously and where a longer-term reaction is likely if price revisits it. The Projected Pattern: What the Red Markup Shows The red freehand markup sketches out a plausible corrective structure — a series of higher lows and lower highs that tightens into a contracting triangle or wedge, followed by a projected breakdown. This kind of pattern typically forms when: Price pulls back into a resistance zone (the flipped support level) after a decline. Buyers and sellers battle it out, creating a diminishing range (the converging trendlines). The pattern resolves in the direction of the dominant trend — in this case, a continuation to the downside, back toward the deeper support level. This is a common continuation pattern in trending markets: rather than reversing, price often pauses to “flip” a broken level before resuming its original direction.

Why This Matters for Traders Entry timing — waiting for a retest of the flipped level rather than chasing a breakout. Risk management — placing stops just beyond the flipped zone, where the setup would be invalidated.

Confluence — combining the flip with other tools (trendlines, moving averages, or volume) to increase confidence in the setup. Key Takeaways A support/resistance flip occurs when a broken level changes function — support becomes resistance, or resistance becomes support. The shaded consolidation zone on this GBP/USD chart illustrates a flip from support to resistance after the breakdown. The red projected pattern shows a typical retest-and-continuation structure, a common feature in trending forex markets. Confirming a flip with price action (rejection wicks, lower highs) before entering a trade helps avoid false signals. This analysis is for educational purposes and reflects one possible technical interpretation of price action. It is not financial advice — always combine chart analysis with proper risk management.

Best trading Model. Fakeout and Engulf

If we talk about consistent trading models there are many of them. You rely on Candlesticks. ICT Models and other way to trade . Indicators are widely used for scalping but for me thre is no indicator ever exist that can predict the market in advance except divergence that tells you trend is maturing but still it is just a help but not the complete setup model.

Chart simplifies the reaction if there is an attempt to revisit that level and you see there are few basic things you need to know what are you strengths and weakness. Models are practiced first and you need to have backtest and knowledge of using those models in various market conditions . I will you in the regard and I will cover every reason with everychart that I post here in this post for the next few days or weeks to make you feel comfortable while trading. Beleive me there are flaws in every trading model but still you can make it perfect one with testing. I can teach you everything you need to know but after all its you emotions and risk management that you need to apply to make it your own model.

Engulf is most easily used trading model in trading since the candelsticks launched but it not only helps but it tells you in advance what will happen when major barrier is approached.

This second chart holds the key. It tells you not only approach and first reaction is the key to start looking for entries . You can simply watch cap areas to hold if there is support resistance flip. Chart explains each and everything you need to know to understand the logic of stops being hunt and when there is imbalance in the market you need to quicken up and use the basic key concepts that I mention on the chart.

Price Action different scenarios

Price Action often face few scenarios to decide the next path. Here I'll discuss few of them with you. Price often reacts first and then You can have Idea whether or not there will be a rejection below or not. Holding support Quasimodo pattern King zones like two straight low weak candels in the same direction with displacement. Actually term displacement rules the trading. Moves come in ranges comes after breakout but after first reaction from support resistance there comes the 2nd support and resistance and if the move is strong enough to give traders an idea to what it would react when it tests the same area again.

I'll get back to you with more examples in the next few days and weeks. Read the chart first. Nice rejection and QM and then flip first attempt above support resistance flip failed gives us entry with low risk .

Here Im posting yet anouther chart where you can see the difference between zone test after QM rejection. Both are the scenarios are good to trade unless and untill you miss a point, you should have stop right above the zone penetration or failed test. Will post more such charts next week before any live trade

Trading look easy When you test your strategies

I will cover few trading techniques and strategies and guide you through the process which can help you pinpoint your entry. Market dynamcis and structures are designed so skillfully that retail traders often found themselves in dialemma when to enter and when to exit. To be honest, we are just exit liquidity for bank and institutions and they do this while there are some tensions and strong fundamentals releases around the corner. You just need to understand the complete structure of a setup.

Points you need to cover first of all is whats lying in the place where you should enter and that could be previous history and support and resistance area and simply put the stops few points above previous history or consolidation breakouts above or below.

Check the Chart Above

As shown in the chart above, Price has a history above or below and strong rejection out of head & shoulders pattern. As I mentioned in the previous post of ethereum rejection, Candlesticks patterns is important as it is the first thing we need to know while making decisions which is the power or sentiment building to move from recent levels. In next chart, I'll point out the Candlestick which was built at top and the how price leans away from the level to next support and then flipped the zone while testing it again.

Move on to charts that gives us perfect entry

Before moving out to next and explain what is exactly mentioned on the charts, one must understand the points and fact the reason of taking a trade. History often repeats and patterns which are build and area of taking a tarde should be strong. Even strong support and resistance are breached in single attempt and never revisited for lateral entry and this is even not the right way to trade. You must understand the fact the trading requires techniques and often stops and hunts are picked on edge of the chart which often place in between ranges and before breakouts ever occur. Learn to take a trade at revist but often pick up points that one must learn before entering.

This charts points out three levels upper middle and lower and we see reaction at all the levels . Head and shoulders and strong rejection first. Secondly, we fould ignored area with even more pressure which means that bears who take out the level didn't respect that level which was earlier accumulate orders and third one is lower zone which flipped the zone which often is a clean signal of there are orders left need to be taken out and one points which I didn't mentioned on the chart is point which is we cannot go straight out and take a trade on bullish rejection underneath. One must wait for candle to close and next candle to open and react and see if there are buy or sell stops above or below that candle and this is big mistakes trade do and blindly place limit order few points above or below bullish or bearish candles.

Note down the points and I'll continue the blog in my next summary of taking another trade this Monday and post it right here on the blog and explain the specific reasons of taking out the trade

Here is yet another example of ignored areas

Same can be said when we see upper area has been the source of strong decline and we see the price often flipped the lower zone then we can wait for confirmation of the candle close at rejection from medium range and then we see if we see a full body close at flipped level. We enter immediately after the close as this is strong momentum which will again ignored the flipped zone and we can ride the low of the swing .

Ethereum Rally was on the cards

Crypto trading futures I saw this ethereum rally coming for more than six months but it takes lot more time to take effect. Now as My point of view the recent price action in ether is quite low and awaiting response as compare to early price action when it explode from 36-3400 levels. I saw this as new opportunity to short ether at recent levels. In case you need confirmation you need to wait for the today candle to close and which will confirm the Price action if it is a dozi or low body bearish or bullish don't matter.

Somehow I manage to site another short opportunity while we are still awaiting U.S GDP data and Big institutions are pricing in NFP as we might see a surprise in Payroll data after recent Tarriff war started by Donald Trump. Whatever he might be planning we should set it on sidelines and look to target Crypto as they are the first who react whatever comes out of U.S corner.

Update of the post above

As I posted above the trade and went through taking that opportunity I wonder if it would take another couple of sessions to drop but instead it took just one U.S session to drop 200 points straight to 4650 support and psyhological barrier . Now I am sitting breakever +150 points and trailign my entry.

For better understanding check the chart after posting for clear understanding the matrics . I will cover the idea behind the trade which will help traders to pinpoint the entry .

Keep an eye Gold Futures. Eyeing big reversal

I would update the blog with possible reversal about to happen in Gold spot futures which will atleast target 1510 area and only support around 1760 needs to be breached & I would put stops around 1776 area.

I would like to change my idea after seeing such a strong rally in Gold future which has never been witness. This might go to strongest in recent decades, specially after U.S struggling with economy we can see the Dollar sell off continues amid strong stimulus packages issued by U.S government which will surely put lot of pressure on U.S dollar in coming months & It won't stop here & I'm eyeing something really big & We can some strongest packages coming out in a couple of months time.

So far Rally has been so strong that I have changed my decision to look for more strength with the correction rather than reversal. I would advice you all to stay away from shorting Gold at the moment and possible look to buy on dips for a rally towards atleast $2250. If this correction continues to be deep, then probably we will have strong support around $1750 & from there we can look for possible buy for a stop around $1690. First, we need to see strength of the correction and secondly we must see the Support and resistance holding or giving away when this rally continues to be strong or stalled around areas.

Chart & idea will take sometime, but I'm pretty sure that rally has stalled for next few weeks. I've seen so many reversals after strong NFP release & one of the strongest reversals in Gold future happens in 2011 when it topped out around and price was around $1886 when strong NFP numbers surprise the market, but this situation is never ever faced by anyone like the Pandemic and other fears after pandemic, so wait and watch the Price Action unfolds and we will soon see some good areas to buy Gold and get a piece of pie..

Eth address to Contribute
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Forex Trading without indicators and make it as simple as you Can

We all are facing difficult times and we all need to contribute the best way we can and we should. We should atleast try to give as much as we can, part of your daily meals and cut them 20-30 percent would make a hell lot of difference.

I'm contributing to everyone globally through my blog as a Free trading for one month with trade recommendations & all you need to do is to stay focus and watch every chart with caution and I'll update the chart everyday with quotes and why we should be able to take that trade & what should be our stop and targets.

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Bullish Price Action on all the Gbp crosses on Major Counterparts

I would like to Daw your attention towards the Gbp Crosses as I got tremendous opportunity on couple of trades in Gbp/usd & Gbp/jpy (Almost 400 + Pips)

Chart above is of Gbp/usd, which was the easiest of trade among all the gbp pairs. We have seen some good movement downwards followed by immediately RBR followed by strong momentum fail to Return which is the reason I always marked this potential zones & As a trader you must use strong S/R areas at extreme levels to take a trade or see how price Action unfolds near those areas.

PRice broke through to the upside and posted a new attempt to cross below previous support and then it was highlighted by break of support and retest and yesterday we see an attempt to the previous historical support amid slow price action & look what happen today on the pair.

Same story has happened with gbp/jpy but that trade was far from ever and price is attempting to rise to the level it left bulls apart. Same Rather easy trade for me when I fetched 300 Pips on that pair which was the easiest trade for me for the whole year & I always look around to mark strong zone and wait for Compression and slow movement to the extreme levels of these type of zones.

Much Awaited price Action as I am looking or price to hold around the today high 1.1970 area & possibly slow price action would start to develop amid eur and France Weakness which can be seen in gbp/chf pair or we can wait for Gbp/Usd to move to test broken support 1.2210. Let's wait and watch and wait for blog to be update if this is an opportunity, then perhaps the 1:30 Risk to Reward opportunity can be here any time in Gbp/chf Pair.

I've marked the charts turning points on couple of pairs and now as gbp/chf is building up nice momentum, I would expect price to drop to 1.1770 level or below to confirm the bullish price Action to confirm the trade setup as happened in gbp/jpy and gbp/usd.

Take a look at all the charts as I'll cover the discussion in couple of days time.

Stay Tuned

Forex trading supply and demand with in and out Compression

Forex Trading is just about showing patience to market movements. While you still need to push your mind beyond expectation and never ever target anything prior to actions. Strong movements followed by recoveries and then usually people got trapped with fundamentals and deteriorating market assumptions.

In between there are something happens on the chart & that is what I love about Forex trading with supply and demand. Reason being, never ever assume the next move. Movement should be supportive the price Action & hence should be controlled with Good Risk to Reward. Always take a trade which you can control and has a good logic behind certain movements and targets.

Price usually leave zones to get to another decision points and it won't stop until it gets to its target & following S&p chart is a good example of Institutional and banks movements which is called strong movements followed by recoveries.

First of all, you need to confirm that there is a swap base with current trend change and that area must have been tested and past or history should be aggressive and attempt to Engulf or broke should be strong and once that happen price should leave that zone again with some strong movements but never manage to engulf or test that area .

Once price leave that zone with HH & HL's, then we should target the attempt to that zone with authority & that chart should compressing into the zone with a steep falling trendline and order get picked once price leave such zones market with blue rectangles. I was enjoying the risk reward to 2970 zone and I fetch more than 40 times of my Risk & that is What I always love about playing a waiting game and that is never away with 10 to 20 pips stops and strong targets are really achievable once you know the 'Decision points in Trading'

Price often move from one Decision point to another decision point. Decision point could be engulf of zone or clean break of zone and test with three drives or stacked or in & out compression. I would cover this topic in detail once I get time or with more Live trade examples.

Stay safe and keep spreading love and help everyone around you with the best you can. We need to fight out against this pandemic together.

Forex Trading is all about approach & Risk Reward

HI Readers, I hope everyone is fine in whatever part of the world, you all live. I wish blessings and pray for your well being from almighty.

Trading has been halted everywhere and I was really concerned about world and my health due to ongoing virus outbreak which went to take so many lives & we never expected that to happen as we all keep doing things we should avoided. Anyway I hereby want to draw your attention towards the trading education and recent eur dollar trade that I took yesterday is a prime example of Support resistance Kink & tested with in & out compression.

We all know price move in patterns and it ever found locations before reversals and without cashflow price never move or reverse or even in choppy sessions, I always keep a note of what is happening on shorter time frame.

Chart of Eur dollar is a very good example & even a average supply and demand trader can fetch some good pips ( +65) to be exact that I took.

Price Action is never random and that is why I always warn price Action trader to keep looking for support and resistance fakey zones before moving to strong trendline resistance support trades. You just need good reward to risk. My Risk in that trade was only 12 pips & rewards is already 5 times of the risk & that is what we should always focus and if you do have a couple of losses then a single trade can help you make out and never force you trade for the whole week or even month .

I hope it helps you all & in case you need any further help, then please contact me with you email & preferred way of contacting. I would reply each and everyone the best way I can.

Cheers & stay well.

Update on 18th April 2020

Euro dollar Price Action on 1 Minute Chart

I always use the price action as Random on any time frame. Prime example is Euro Dollar trade that I took today on 1 minute chart, which fetch me 70 pips with 2 pips stops. I use ECN broker, So I don't have to worry about spread at all. 2 standard lots and I don't have to trade for next couple of months & that is the beauty of having patience and also opt for best of the setups that always offer you 10-20 times of Reward to risk and this time it was exactly 35 times of the Risk I plan to take.

Crude Oil is facing the headwinds amid Cornovirus as Global Demand at the all time low.

First of all, I would like to offer prayers for everyone fighting with outbreak of Cornovirus. Countries like Italy & USA facing worst hits in the days and weeks to come. I hope things get settled as we totally depends on nature to help us to get out of this crisis. Ofcourse, we have power and will to fight anything as we have done so far & I'm sure there would be help coming out of heavens to help us recover and stay healthy.

As I mentioned in my last post of Crude oil futures, where I wrote about the target of Crude oil around $26 a barrel, but as we get to the target too early than I first anticipated or expect, But now as things are getting pretty ugly globally, I don't expect there would be any demand of Crude Oil inventories for the next few months and we will see lowest crude oil price in the months to come.

Trump seems to fuel the Crude market with comments that He will try and set conflicts between OPEC & Russia, but soon comment from Russian camp came through where we witness that Russia is in no mood to favor any alliance with OPEC & favor Production Cut. Product Cut ? Seriously ! Manufacturing units are shutting due to cornovirus & World's Tourism is getting a hit as Borders getting closed.

Pound is approaching crucial support zone . Buy Stops will be triggered around 1.2705 to target 1.3233 zone

Price has been very subdued followed by strong rallies in great pound and it is the only pair which has not pick up any momentum, no matter what the situation might. Rate cut hopes are in the air after Fed cut its deposit rate by 0.50 bps & Now people are expecting BOE to act . Carney will speak on future action tomorrow but I don't care as I watch only my charts and trading levels to be traded.

I would surely recommend trading at 1.2710-15 zone with stops just below the last rejection candle out of the zone as bullish dozi which is around 1.2669 level. If you really like to know the reward of the trade, then it would target the upper part of zone around 1.3250 zone and may be higher because according to elliott wave analysis final leg of wave c of 2 is on the way & it will target higher levels in coming months and years. So, all in all a very good risk to reward opportunity if you are position trader.

Misconception about Price Action . Where you should look for Price Action in Trading

IN this post, I would like to guide you through the price Action technique, which is hard to find anywhere. It is just the way I approach price action and flag & how I look for best risk reward and rate the overall success of taking a trading which is more than 90% . Take a look at the chart below. There is a strong level that has been seen collection of orders up and down. Price has already maintain a fakeout zone market with black line on the left side. Now as price is approaching the level again, we have seen a compression & now as we see more PA unfold ahead of the price approaching the fakeout zone we will witness more volitality and final rejection would been around 143.70 level.

Download my Supply and demand Strategy e-book on Crude Oil Futures download here

I have already show the example chart above why I look for most respect price action zone & approach is to the level. Price is about sequence of puzzles and a combination of Action & reaction and Now, Finally we will witness the final reaction to the level. Stops could be place 15-20 pips above the zone which is already capped with a fakeout.

Australian dollar trading Retails sales & Trade Balance Data

Australian banks is due to release Retail sales & Trade balance data on 6th February and recently there would be surely a setback on retail sales amid global slowdown and conditions in China (Australia's biggest trading partner)

IF there is a shortfall of trade balance, then there would be sales effecting it, specially automobile sector due to global slowdown . I would surely keep an eye on high price approach to 0.6800, strong resistance and psychological barrier.

Trade plan should be wait for the retest of 0.6800 & short it there & then look to set stops around 0.6825 and target 0.6730 as your first target and trail your entry for second target 0.6680.

How to trade Double Marbozu in Forex. Rush Through Crucial Supply and demand levels.

I have just exit my crude shorts around 53.50 levels & what a journey it was. Those who did not check my earlier post on how I manage to pick top of Crude oil, please Check the post here. Crude Oil Reversal

In this Article, I would point out few important patterns in Candlesticks against the trend, that giveaway to complete or short term reversals. Usually, they are trapped levels to trapped traders in opposite. directions and when they occurs or revisit, there are definitely rejection for short term or even on long term. You need to real the top down analysis i.e Chart from pattern occurence to the the lowest level which show some hints of price getting compressed or retesting with Fakeouts.

Why every Candlesticks pattern is used to trap market

This probably would be a hardest of statement to digest. Every Candlesticks patterns does not work, but yes, Reversal patterns are more likely to rely on but not immediately after they occur. But after the occurence & When and how much price reverses after the pattern occurs.

*Also Read :- How I manage to pick the exact top in WTI Crude oil

Strong follow throughs after pattern occured, are the one to mark & this is the first thing you need to note down, when planning any trade opportunity. Then you should mark the level with nearest support or resistance which give away to strongest rise or even decline. That is the reason why I don't bother testing charts every day in and out, but rely on pattern occur & they watch out the price action next following days.

Silver Future is a good hint of pattern occurence & reversal and retest failure

Crude Oil future. final buyer Exhaustion

Hi, Readers

First of all, I would like to give you advance wishes for New year & wish that new year fullfill all the dreams you ever wished.

Usually, I don't trade in low liquidation scenarios amid New year & Christmas holidays. But I always Like to take a look at Crude oil chart usually once a day. Today, I found classic example of Crude oil future which states the buyer's exhaustion & finally engulfed and start of a cycle of seller domination.

I would recommend shorting Crude Oil around 61.95 level with short just above the QM zone which is 62.07 & target is the low of session which is around 61.09 & then 60.63

Gbp/cad testing 1.7210 level

I'll discuss the chart bit later ! Hope you all have prosperous new year filled with Joy, Happiness & lots of profit ! Wishes for all of you !

Taking profit on my gbp/cad shorts

As I mentioned in my post above about the short entry on gbp/cad, around 1.7215 area, So an update was due & today I am taking profits on shorts. For those who did not had a look at the chart, I am updating the chart here again.

I took the profits on gbp/cad too early but that is part of the trading, when you see a level is providing you a 4 to 5 time Reward of the Initial Risk, then You can exit or can trail your entry. As a scalp, it is a good reward but in case you go to higher timeframes, then You can see type of demand in clusters below & that is the only reason why I took profit on gbp/cad trade.

Crude is about to confirm the top on higher time frame & will collapse soon

I've been a long time bearish on WTI crude oil & reason being the recent global slow down, with Gold & Silver prices are at near five year high, I would surely be looking for crude oil to test the crucial 64.56 area, before it collapse. If a top has already been in place, then I would be looking to short it with a break below daily level of $60/barrel. I think that will offer a good risk reward with stops just above 61.55 area and target should be $50.65 which is the recent swing low on weekly chart.

If somehow we manage to break above $64.56/barrel, then It will nullify the bearish run & test of $70.00 barrel would be on cards, but I would still maintain my outlook of bearish on Crude & Brent Oil. Recent Tension in Gulf over death of Solemiani & threats by Iran Military officials to U.S, would really put lot of pressure on Crude Oil & pressure in trading means new opportunities.

I would update my outlook on WTI after the market opens today .

Rising Tension between United States & Iran create panic between Investors and traders

I would like to update you about the recent situation in Iran & U.S after U.S drone Attack killed Military official in Iran. Immediately after the death of the army official, Iran has threatens or warned U.S of the consequences. Market has already shaking here and there for the fight for Safe-heaven & in any case if there is more damage been done, then Gold & Silver will probably the first ones to create demand in the market and I'll also recommend looking for opportunities in both Gold and silver as I'm already seeing much higher level in both the Risk-heaven assets.

Beside, gold & Silver , WTI & Brent crude has already made new 2 years high & I would surely look to look at the scenario specially in WTI crude as I've seen some strong manipulation and eyeing much lower level after tension eased out. It has already happened few months back when Saudi's Oil refineries were attacked & we soon witness a strong sell-off immediately followed the news.

Crude oil is eyeing strong supply zone around 64.57 area, and I would like to see a retest of 60.50 level & if that happens, provided the scenario we are in, I would look to short surely around 65.40 with stops around 65.80 & Target would be first 57.40 & much much lower level would be seen in the coming weeks and even months. I

We already witness a strong fakeout after Saudis attack & that fakeout has happened because there are strong orders after supply capped the upside & Now, if there is panic in the market, then stop hunting would be seen. Practically, we can see market rarely cares for such things as whatever happens, price is going to rally, we just need to stay aside and watch levels to play and when it is our turn, which I think would be soon on cards, then we should step in with protective stops and good reward .

Crude oil Future crash After Trump speech

I update the trade before it had happened. Check the post above where I mentioned shorting crude around 65.40 level & high was around 65.56 area, & now it has reached the first target 60.12 & now I would watch a break below 57.80 to add one more lot.

How to analyze stop Hunting zone when a strong zone is already Engulfed

Hi Readers,

In this post I would like to draw you attention towards Engulfing price action and stop hunting after an area is engulf.

Price Action usually depend on few puzzles. First of them is Flag limit of a zone & second is price Action zone & whole the Price action evolves between these two zones. When an area is engulf, then we should set our focus to another important flag of the zone which is FL or even stop hunting zone. Usually, these areas are MPL zones or you can say Maximum Pain level when we have an area which is already given away (Strong support or resistance) & then price move backs to the zone and after Faking out the zone, there is usually significant Drop or Rise is seen.

Our focus should be on the reaction of the price, when Price again visit that area. Price usually visit that area with strong collection of orders. It could be these of areas & location few times. Price can compress to that zone or even price can create Stop hunting zone. Best way to spot those zones is usually stop hunting.

Stop Hunting process usually depends on way wyckoff explain the sign of strength or weakness

Wycoff usually spot end of trend with strong buying or even selling Climax and then accumulation & then another trend starts which can be either testing the distribution zone above or even with markup zone, when we have new trend in sight. But our focus is on testing the distribution zone again. I'll create a video explaining the chart with engulf and then test of area with conviction.

State bank of India stock NSE entering price Action zones around 337

You people must have been surprise by the blog title. As I never recommend trading stocks or derivatives. But due to numerous mails & comments, I'm hereby uploading the chart of Indian Stock State Bank of India.

Price is stalling ahead of 337 resistance area which is also a part of rejection of price action zone. If price manage to hold 326 area, then I would recommend shorting around 337.51 with stops around 339.50 & First target would be 317 & Second target would be 308 zone market with red rectangle.

Price Action Reacting the previous Manipulation zone which should act as bulk buying orders

As I have clearly stated in my previous articles that when you trade a swapping flag, then there should be a flag just below the engulf zone which should play the manipulation game & that chart is a perfect example.

More on that will be updated soon. Stay tuned.

Pound Trade levels before Great Bretain Election Results l Definitely Risk-on

Despite of continuous reports on failure of deal in England but still I expect this upcoming election results will give us finally what market wants as deadline of 31-12-2019 is approaching very fast. Now or never sort of approach should weigh on investors and never seen volatility would be seen. You won't get any chance of taking a trade in pound dollar, so If you've planned to enter earlier to release, then I would suggest you to get out of situation and wait for 24 hours before you enter again.

For me, Price is strongly approaching 1.3760 area which is clear indication of some correction. We earlier have buyer swings which were hold twice above this level and finally we break out lower. Now as price is approaching strongly to the level I would expect market would show some caution ahead of 1.3190-3230 barrier and we can see a small correction to 1.3000 & then before we approach 12th December we can see a small range or spikes followed by correction whenever there are rumours or any news relating to the results.

All the Gbp Pairs would have larger spread ahead of Brexit

Most exotic currencies in Major pairs are gbp/Aud & Gbp/nzd & I have never recommended trading these pairs with small trading accounts or unless we have a small risk trade. These two pairs already have a spread of 4 and 5 points but due to Bretain Voting results we can surely see expansion of spread to atleast 10-12 points or even more. So, trading in these two pairs is definitely not recommended.

Pound Chart & Trading levels ahead of Voting Result

Chart below truly stating that we have couple of Accumulation and distribution areas & finally we are getting out of one and approaching next level which is already a upthrust level on weekely just above 1.3650 & When Price is going through these hurdles, already showing sign of real weakness but as we have strong bullish flag breakout, I expect those orders above that flag are waiting to be clicked & test of that level would add more weight when we visit that 1.3650-90 area again.

Euro gbp facing Price Action zone around 0.8515 before Brexit vote results

I would follow up with the chart. Euro gbp has trying to stop hunt stops ahead of vote results. Stops should be place around 0.8530 entry should be around 0.8515& Target 0.8430-05 area.

I would advice you all to manage your risk and tighten your stops as possible as you can. Risky events can pave away the way for new downtrend but I would recommending closing with first target with two entries and trail the second one at breakeven when First Target is met.

Result of trade Eur/gbp after exit polls

The chart below illustrates that we miss the trade by mere 9 pips and move was so devastating that it breach through the support and hit all targets and through 0.8300.

Thing to look out at this time is approach. Approach to broken support at m30 was the real factor that we need to dig into. I'll prepare a video soon & will publish my idea why it went down from that SBR (Support becomes Resistance ) & about market manipulation.

By Market manipulation, I mean to say that was the market aware of the exit polls ?

Do the know the results & set orders prior to release and what approach we should follow before these type of big events. All these doubts comes to mind when I was novice & decided to buy the broken support and retest areas to get trapped and leave the trade open before the big events & blow my Accounts

Seriously, that has happened to me hundred of times. Whether it was Greece default, Britain referendum, Scotland referendum etc. I loose my account so many times, but this time I missed the Jackpot trade & believe me I'm not talking about small lots. But anyway, this has been story & I hope those who stay at blog and spend time on the blog understands the value of such events. I'm still quite confident that we will soon get into strong Euro dollar swings which is targeting atleast 1.1800 will leave a trade on table next week.

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