What is a Quasimodo Pattern? A Quasimodo Pattern is a chart pattern traders look for to predict possible price reversals in the market:
- Bullish Quasimodo: Signals a possible price increase (buying opportunity). - Bearish Quasimodo: Signals a potential price decrease (selling opportunity).
How the Script Works 1. Bullish Quasimodo: - Checks if the price pattern shows signs of a potential upward movement: - The current low price is higher than a previous price point (suggesting fair value gap). - The previous candle closed higher than it opened (bullish candle). - The candle before that closed lower than it opened (bearish candle).
2. Bearish Quasimodo: - Looks for signs of a downward movement: - The current high price is lower than a previous price point (suggesting fair value gap). - The previous candle closed lower than it opened (bearish candle). - The candle before that closed higher than it opened (bullish candle).
Visual Indicators - Yellow Candles: Indicate a bullish Quasimodo pattern. - Pink Candles: Indicate a bearish Quasimodo pattern.
Alerts If a Quasimodo pattern is detected, the script sends an alert: - The alert says: "A Quasimodo Pattern has appeared!"
Purpose Traders can use this tool to quickly spot potential trend changes without manually analyzing every chart, saving time and improving decision-making for trades.