What is the QML (Quasimodo) Chart Pattern?
The Quasimodo (QML) is a reversal chart pattern that, when formed at a significant higher time frame support or resistance level, can signal a potential trend change.
This pattern is commonly used by day traders to anticipate price reversals from important levels such as supply and demand zones or major support and resistance areas.
The QML pattern is identified by a shift in market structure:
In an uptrend, it appears as a higher high followed by a lower low.
In a downtrend, it shows as a lower low followed by a higher high.
Depending on the prevailing market trend, the QML pattern comes in two main types:
1. Bullish QML (Quasimodo) Pattern
The bullish QML forms at the end of a bearish trend, typically at a key support level.
During a downtrend, prices create a series of lower highs and lower lows. However, when the market reaches a critical support area and breaks the previous lower high by forming a higher high, the structure shifts. This new sequence of a lower low followed by a higher high forms the bullish QML pattern.
A Bullish QML pattern signals a potential price reversal from a downtrend to an uptrend.
Steps to Trade the Bullish QML Pattern:
Identify the second-to-last low and the most recent low before the QML pattern forms.
Mark the zone between these two lows — this is your QML area.
Within this zone, look for signs such as imbalances, demand zones, or FTR (Failure to Return) levels.
Enter a buy trade when the price revisits this zone, or wait for confirmation like a Market Structure Shift on a lower time frame.
Set your stop-loss just below the most recent low (QML low) and aim for the last high (QML high) as your take-profit target.
2. Bearish QML (Quasimodo) Pattern
During an uptrend, the market typically creates a series of higher highs and higher lows. When the price hits a significant resistance level and then drops to form a lower low—breaking below the prior higher low—it establishes what is known as a bullish QML (Quasimodo) formation.
(II) Bearish QML
This chart pattern signals a possible shift from an uptrend to a downtrend.
Steps to Trade a Bearish QML Pattern:
Identify the second-to-last high and the most recent high before the QML formation.
Mark the zone between these two highs (the QML zone).
Check for imbalances, supply zones, or Failed to Return (FTR) levels within this zone.
Enter a sell trade when the price revisits this zone, or wait for confirmation such as a market structure break on a lower time frame.
Set your stop-loss above the last high (QML high) and aim for the last low (QML low) as your take-profit target.
Basis of the QML Pattern
The QML pattern is rooted in the concept of a Change of Character (CHOCH). This occurs when the market shifts direction, breaking a previous lower high in a downtrend or higher low in an uptrend—an idea central to smart money trading strategies.
However, a QML setup can sometimes signal a price reversal before a CHOCH actually takes place. This happens because not every high or low qualifies as a structural point, meaning the QML can form without breaking a major structural high or low.
Why the QML Pattern Matters
This pattern is valuable to traders because it highlights possible trend reversals at significant price zones, giving them a better chance of entering high-probability trades.
Time Frame Applicability
While the QML pattern can be spotted on any time frame, it is generally more reliable when seen on higher time frame support or resistance levels.
How Traders Apply the QML Pattern
Day traders often use the QML to predict reversals from key areas—such as higher time frame supply and demand zones or notable support and resistance points—helping them pinpoint potential market turning points.
The Quasimodo (QML) is a reversal chart pattern that, when formed at a significant higher time frame support or resistance level, can signal a potential trend change.
This pattern is commonly used by day traders to anticipate price reversals from important levels such as supply and demand zones or major support and resistance areas.
The QML pattern is identified by a shift in market structure:
In an uptrend, it appears as a higher high followed by a lower low.
In a downtrend, it shows as a lower low followed by a higher high.
Depending on the prevailing market trend, the QML pattern comes in two main types:
1. Bullish QML (Quasimodo) Pattern
The bullish QML forms at the end of a bearish trend, typically at a key support level.
During a downtrend, prices create a series of lower highs and lower lows. However, when the market reaches a critical support area and breaks the previous lower high by forming a higher high, the structure shifts. This new sequence of a lower low followed by a higher high forms the bullish QML pattern.
A Bullish QML pattern signals a potential price reversal from a downtrend to an uptrend.Steps to Trade the Bullish QML Pattern:
Identify the second-to-last low and the most recent low before the QML pattern forms.
Mark the zone between these two lows — this is your QML area.
Within this zone, look for signs such as imbalances, demand zones, or FTR (Failure to Return) levels.
Enter a buy trade when the price revisits this zone, or wait for confirmation like a Market Structure Shift on a lower time frame.
Set your stop-loss just below the most recent low (QML low) and aim for the last high (QML high) as your take-profit target.
2. Bearish QML (Quasimodo) PatternDuring an uptrend, the market typically creates a series of higher highs and higher lows. When the price hits a significant resistance level and then drops to form a lower low—breaking below the prior higher low—it establishes what is known as a bullish QML (Quasimodo) formation.
(II) Bearish QMLThis chart pattern signals a possible shift from an uptrend to a downtrend.
Steps to Trade a Bearish QML Pattern:
Identify the second-to-last high and the most recent high before the QML formation.
Mark the zone between these two highs (the QML zone).
Check for imbalances, supply zones, or Failed to Return (FTR) levels within this zone.
Enter a sell trade when the price revisits this zone, or wait for confirmation such as a market structure break on a lower time frame.
Set your stop-loss above the last high (QML high) and aim for the last low (QML low) as your take-profit target.
Basis of the QML PatternThe QML pattern is rooted in the concept of a Change of Character (CHOCH). This occurs when the market shifts direction, breaking a previous lower high in a downtrend or higher low in an uptrend—an idea central to smart money trading strategies.
However, a QML setup can sometimes signal a price reversal before a CHOCH actually takes place. This happens because not every high or low qualifies as a structural point, meaning the QML can form without breaking a major structural high or low.
Why the QML Pattern Matters
This pattern is valuable to traders because it highlights possible trend reversals at significant price zones, giving them a better chance of entering high-probability trades.
Time Frame Applicability
While the QML pattern can be spotted on any time frame, it is generally more reliable when seen on higher time frame support or resistance levels.
How Traders Apply the QML Pattern
Day traders often use the QML to predict reversals from key areas—such as higher time frame supply and demand zones or notable support and resistance points—helping them pinpoint potential market turning points.