Up and under price pattern

Quoting rmchokku

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Is the following trade just a stopped out trade or something wrong in analysis?

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Quoting Inthebox

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{quote} i am no expert but where was your exact entry? 1. first time back 2. second time back because at 1 was not a bottom apex as 2 was lower than 1. 3. qm - bottom apex at 1 or 2 all three had 1:1 move. {image}

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Quoting rmchokku

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{quote} Thanks. I would have placed the entry @ the first return. The zone got violated/potentially stopped out if there was a tight SL. I agree, the second one gave a good move. However, if a QM zone (area between previous swing high/low to current high/low) is violated, do we still take an entry?

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Quoting Inthebox

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{quote} a QM looks like a head and shoulders pattern but with different entry criteria. the head needs to be at the apex (highest/lowest) point with left and right shoulders (entry at right shoulder). it would be 'ideal' with all the 3 entries taking profit at the resistance zone. {image}

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Quoting Garrus

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{quote} This is not exactly shoulders and head pattern... tis is more s&d trading I think.

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Quoting Inthebox

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{quote} not exactly but think in term of head and shoulders as it is more easily recognizable. but with left and right shoulders at around the same level. https://www.icmarkets.com/blog/quasimodo-pattern/

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Quoting rmchokku

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{quote} Thanks ucnobi. I take your point that key level at higher timeframe is taken as a reference point. Do you consider higher timeframe trend when trading QMs?

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Quoting Inthebox

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so strictly speaking point 3 is the only valid QM entry. if you have further interest, just google search what does "first time back", "second time back" means.

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Quoting rmchokku

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{quote} Some confusion, those were just entry points (1,2,3). My QM is to the left where the green rectangle area starts. You could see price made lower low and higher high, also broke previous market swing high (QM pattern). Entry is now being made when price is returning to the zone using limit order.

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Quoting Inthebox

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{quote} you mentioned that your entry was at point 1, then i would say that that's not a QM. reason is point 1 had gone below the head level even by 1 pip making a lower low, there was no right shoulder set up. which would bring to another problem for using limit order if there's only small range between the left shoulder and head, while price had already took a long time to travel up and came down rather sharply in 1/3 or 1/4 of the time taken going up. then the supposed right shoulder overshot the head level which would invalidate the QM set up....

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Quoting rmchokku

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{quote} I don't use Head & Shoulders since I believe there is a subtle difference between QM & H/S. QM expects explosive move from the zone (head area). Moreover, if range of QM zone is small, its better from R/R standpoint. In this chart, the space between Low and Lower Low is marked as a bullish QM zone. The setup would like this: https://www.tradingview.com/x/VheAq3Vk/ Price didn't retrace back to the QM level immediately (not necessary too) but came back to it after 10 days.

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Quoting Inthebox

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{quote} ok i had stated my case and will just accept that we trade different methodology in qualifying the term QM. i trade the blue zone. my focus is at the right shoulder. once the highest point which is the apex head gets violated, qm set up is invalidated. but if price comes down from the head level, i call that double top. no further discussion needed. {image}

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Quoting tommydoginti

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Just like to share my analysis using the QM strategy from last week to now. Please feel free to point out if you think I am doing it correct or wrong. I probably have missed quite a few opportunities as I was not checking the chart often. I am setting the TP very low, towards the High/Low of the small pullback between the two peaks of QM. I know the general rule is to target the pull back after the QM pattern. EURUSD M15: Win-0, Loss-3, Pending Order-1 I found some very clear EU but so far got stopped out 3/3 .... The second opportunity...

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Quoting rmchokku

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{quote} I'm not highly experienced trading QMs but my thoughts on your charts; EUR/USD: https://www.tradingview.com/x/ItqtoIEt/ 1) The zone is yet to be reached, looks crowded and tested to me but unsure 2) Good setup. Entry could be fine tuned in lower timeframe since the QM zone looks big 3) Tested zone 4) Setup lacks strength of move down GBPUSD: looks good. I would have marked the QM Zone as wick to wick, ended up missing the trade and incurred a stop hit. I struggle on QM zone marking because we never know from where its likely to...

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Quoting rmchokku

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Need some help. I understand the concept of QM and few trades punched in the past. However, i would like to get your feedback on the following: a) What filters can be applied to select quality trades instead of entering at every QM? b) QM in a smaller timeframe will look like an engulfing candle in higher timeframe. However, it will result in lot of stop-out trades if we take such engulfing candle trades (using the wicks) blindly. I attempted to automate backtesting using engulfing pattern but outcomes are not positive. How do we scan for QM? Is...

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