Timeline
- Liquidity formed: local high 0.2753 (left shoulder)
- Structural low 0.2724 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 0.2756 confirmed
- CHoCH: close below the structural low 0.2724. Quasimodo confirmed
- Price is approaching QML
- Price is approaching QML
- Price entered the QML zone
- Idea cancelled: Close above the head (0.2756)
Why this setup was found
First the market formed a local high 0.2753 (left shoulder). Stop orders piled up above it, that is, liquidity.
Then price took that liquidity: the head reached 0.2756, which is 0.0003000 (0.25 ATR) above the left shoulder.
Then price closed below the previous structural low 0.2724 (close 0.2721). This is a bearish CHoCH: a change of market character.
The left shoulder zone (0.2746–0.2753) became the QML level: price often returns here before continuing the move.
There were equal highs nearby: they were what price hunted.
Structure on 15m: bullish (against this idea).
Structure on 1h: bullish (against this idea).
On the break candle aggressive sellers dominated (64% of volume).
There was no absorption on the candle that returned to QML.
Result: the idea was cancelled.
This is a scenario built from market data, not a guarantee of the result.