Timeline
- Liquidity formed: local high 257.7 (left shoulder)
- Structural low 255.7 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 258.3 confirmed
- BOS: close below the structural low 255.7. Quasimodo confirmed
- Price is approaching QML
- Price is approaching QML
- Price is approaching QML
- Price entered the QML zone
- Idea cancelled: Close above the head (258.3)
Why this setup was found
First the market formed a local high 257.7 (left shoulder). Stop orders piled up above it, that is, liquidity.
Then price took that liquidity: the head reached 258.3, which is 0.6700 (0.42 ATR) above the left shoulder.
Then price closed below the previous structural low 255.7 (close 254.4). This is a bearish BOS: a break of structure.
The left shoulder zone (257.2–257.7) became the QML level: price often returns here before continuing the move.
An already touched bearish order block overlaps QML by 100%: big players already built positions in this zone.
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.