Quasimodo Pattern Structure By EmirTradeHub

The Quasimodo Pattern Structure indicator identifies bullish and bearish Quasimodo (Over/Under) market structure patterns and automatically generates a complete trade management framework including entry zones, stop losses, and multi-stage take-profit levels. This tool helps traders visualize structural reversals and automate the detection of price action reaction zones.

Usage

The Usage section describes how the script can be used, examples should be provided in this section. This tool functions by scanning for specific pivot-based structural shifts. When a pattern is confirmed, the script draws a price path (A-B-C-D) and projects a horizontal Entry level based on the "A" pivot.

Traders can use the indicator to:

• Identify Reversals: Spot Bearish Quasimodo patterns (Higher High followed by a Lower Low) or Bullish Quasimodo patterns (Lower Low followed by a Higher High).
• Automate Trade Planning: Once the D point is confirmed, the script monitors the retracement to the Entry level.
• Monitor Trade Progress: The script tracks whether the price reaches the Entry zone, hits the Stop Level (based on point C), or reaches Take Profit 1 and 2.
• Filter Expired Patterns: If the price fails to return to the Entry level within the user-defined "Entry Timeout Bars" period, the pattern is labeled "Expired" and deactivated.

Details

The script utilizes a ZigZag logic based on pivot highs and lows to define the market structure. The construction of the patterns follows these rules:

• Bearish Quasimodo: Consists of a series where the structure creates a peak (A), a valley (B), a higher peak (C), and finally a lower valley (D) that breaks the previous valley (B).
• Bullish Quasimodo: Consists of a valley (A), a peak (B), a lower valley (C), and finally a higher peak (D) that breaks the previous peak (B).
• Entry Logic: The Entry is strictly the price level of pivot A. Trade management lines (Stop/TP) only become active once the price touches this entry zone.
• Confirmation Delay: Because the script relies on pivot points, signals appear only after the "Right Bars" confirmation period has passed, ensuring the structural points are valid pivots.

Settings

ZigZag Settings

• Left Bars: Number of bars to the left required to detect a pivot.
• Right Bars: Number of bars to the right required to confirm a pivot (higher values increase lag but improve reliability).

Other Settings

• Quasimodo Mode: Filter to show only Bullish, only Bearish, or Both pattern types.
• Entry Timeout Bars: The maximum duration (in bars) the script will wait for the price to return to the Entry level before invalidating the pattern.

Visual Settings (Grouped)

• Position Entry: Customize Entry line color, width, text size, and candle label size.
• Stop Visual: Adjust the color, width, and text size for the Stop Level line (Point C).
• Take Profit: Configure the appearance of the TP-1 and TP-2 lines.
• Trade Result: Change the size of labels that report trade outcomes (e.g., "Stopped out", "Take Profit Hit").

FAQ

How does the indicator determine the Stop Loss? The Stop Level is dynamically placed at the price of pivot point C, which represents the most recent structural extreme before the reversal shift.

Why did a pattern disappear or show as "Expired"? A pattern expires if the price does not return to the Entry level (Pivot A) within the "Entry Timeout Bars" limit set in the settings. This prevents trading stale structures.

How can I get access to the Quasimodo Pattern Structure? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.