1. What is the Quasimodo (QML) Pattern in ICT?
The Quasimodo Pattern (QML) is a high-probability reversal pattern used in Inner Circle Trader (ICT) trading.
It is based on a market structure shift, where price creates a series of highs and lows, traps liquidity, and then reverses direction.
Traders use QML to identify key levels of market imbalance where smart money induces liquidity before reversing price.
It is one of the strongest institutional trading concepts because it traps retail traders and follows order flow principles.
2. Key Characteristics of a Quasimodo Pattern in ICT
1. Formation of a Higher High (HH) or Lower Low (LL)
- In a bearish QML, price makes a Higher High (HH) but then drops below the previous Higher Low (HL).
- In a bullish QML, price makes a Lower Low (LL) but then breaks above the previous Lower High (LH).
2. Break in Market Structure (BMS)
- Price violates the previous structure, confirming smart money manipulation.
- This signals a shift in order flow and a potential trend reversal.
3. Liquidity Grab (Stop Hunt)
Market makers often push price above the previous high (or below the low) to trigger stop-losses before reversing.
4. Rejection from an Order Block or Supply/Demand Zone
The best QML setups occur when price returns to a key Order Block, Fair Value Gap (FVG), or Supply/Demand Zone.
3. Types of Quasimodo Patterns in ICT Trading
1. Bearish Quasimodo (QML) – Trend Reversal to the Downside
A bearish QML occurs when the price forms:
✅ Higher High (HH) → Breaks Below Higher Low (HL) → Creates a Lower Low (LL)
✅ Pulls Back to the Quasimodo Level → Drops Lower
📌 Example of Bearish QML (EUR/USD 4H Chart)
- EUR/USD forms a Higher High at 1.1050 (trapping breakout traders).
- Drops below the previous Higher Low (1.1000), confirming a market structure shift.
- Price retraces to the QML level (1.1025), rejecting a bearish Order Block.
- Short trade entry at 1.1025 with SL above 1.1050 and TP at 1.0950 (previous liquidity pool).
✅ Outcome: Price reverses and drops, completing the bearish setup.
2. Bullish Quasimodo (QML) – Trend Reversal to the Upside
A bullish QML occurs when the price forms:
✅ Lower Low (LL) → Breaks Above Lower High (LH) → Creates a Higher High (HH)
✅ Pulls Back to the Quasimodo Level → Moves Higher
📌 Example of Bullish QML (GBP/USD 1H Chart)
- GBP/USD makes a Lower Low at 1.2550, trapping sellers.
- Breaks above the previous Lower High (1.2600), shifting market structure.
- Retraces to the QML level at 1.2575 (a bullish Order Block).
- Long trade entry at 1.2575 with SL below 1.2550 and TP at 1.2650 (next liquidity pool).
✅ Outcome: Price moves up strongly, hitting the target.
4. How to Trade the Quasimodo Pattern in ICT
Step 1: Identify the Market Structure Shift
- Look for a Higher High (HH) followed by a Lower Low (LL) for a bearish setup.
- Look for a Lower Low (LL) followed by a Higher High (HH) for a bullish setup.
Step 2: Mark the Quasimodo Level (QML)
The QML is the last retracement level before the market structure break.
Step 3: Wait for Price to Retrace to the QML
- Look for a Bearish Order Block (for shorts) or a Bullish Order Block (for longs).
- Confirm the retracement using Fair Value Gaps (FVGs) or Liquidity Zones.
Step 4: Look for Entry Confirmation
- Use lower timeframe confirmations like a rejection candle, breaker block, or Wyckoff distribution.
Step 5: Place Your Stop Loss and Take Profit
- Stop Loss (SL): Above the previous HH (for shorts) or below the previous LL (for longs).
- Take Profit (TP): At the next liquidity level or Fair Value Gap (FVG).
5. Why the Quasimodo Pattern Works So Well?
✔ It traps retail traders who enter on breakouts.
✔ It follows Smart Money’s market structure shift.
✔ It aligns with liquidity grabs and Order Blocks.
✔ It offers high reward-to-risk trade setups.
6. Final Thoughts on the Quasimodo (QML) Pattern in ICT
The Quasimodo Pattern is one of the most powerful reversal setups in ICT trading. It helps traders identify institutional shifts in market structure, offering high-probability entry points.
By combining QML with Order Blocks, Fair Value Gaps, and Liquidity Concepts, traders can maximize their edge in the forex and stock markets.
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