The Quasimodo Pattern, although complex as it might seem is actually
very simple. This trading pattern is especially powerful because when it
occurs, in most cases, traders will notice a confluence with other
methods of analysis.
For example, when a trader spots a Quasimodo pattern near a support or
resistance level, it increases the confidence of the trader or the
trading probability. Likewise, when trading divergences, when you spot a
Quasimodo pattern, that confluence can be used to trade the divergence
set up with more confidence.
As we can see from the above, the Quasimodo pattern is not a trading
strategy by itself but is more of a confluence pattern that can be used
to confirm a trader‘s bias. Of course, the Quasimodo pattern doesn’t
appear all the time, but when it does, traders can be sure that the
market offers a high probability trade set up. As we can see from the
above, the Quasimodo or Over and Under pattern is a relatively simple
pattern, which when used in conjunction with other trading strategies or
signals offers a great way to increase the probability of a trade set
up.
