Technical Definition
The Quasimodo Pattern, also known as the Over and Under pattern, is an advanced reversal structure that forms when price creates a failed higher high in an uptrend or a failed lower low in a downtrend. This failure signals a shift in market structure and highlights areas where smart money transitions from accumulation to distribution or vice versa.
It is a "Head and Shoulders" that is crooked. Price makes a new high (the trap), breaks structure (the shift), and then you enter when it comes back to the shoulder level.
Trend structure failure signals control shift
Market Psychology
Confidence
The market believes the trend will continue. Participation remains strong.
Deception
Price creates a final push (Over) that convinces late traders to enter.
Trap
The market fails to continue and breaks structure (Under). Late participants are trapped.
Reversal
Trapped traders exit, fueling strong momentum in the opposite direction.
Pattern Anatomy
Trend Check
Market is in a clear trend (e.g., Higher Highs/Lows).
The Trap (Over)
Price makes a new High (Liquidity Grab) or Low.
The Shift (Under)
Price breaks the recent structural low/high (Structure Break).
Entry Zone
Price returns to the "Shoulder" level (The Quasimodo Line).
Pattern Rules
Trend
A clear trend must exist.
Break
Price must break structure (create a LL in uptrend).
Deception
A failed Higher High or Lower Low must form.
Level
The Quasimodo level (Shoulder) is the execution zone.
Confirmation
Confirmation strengthens reliability.
Tactical Execution
Sell at Left Shoulder supply
Stop loss above Head
Target recent Low
Signal Confirmation
- Rejection candles at Quasimodo level
- Momentum divergence
- Break of internal structure
- Strong follow-through after entry