Timeline
- Liquidity formed: local low 255.6 (left shoulder)
- Structural high 259.6 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 255 confirmed
- CHoCH: close above the structural high 259.6. Quasimodo confirmed
- Price is approaching QML
- Price is approaching QML
- Price is approaching QML
- Price entered the QML zone
- Idea cancelled: Close below the head (255.0)
Why this setup was found
First the market formed a local low 255.6 (left shoulder). Stop orders piled up below it, that is, liquidity.
Then price took that liquidity: the head reached 255, which is 0.6000 (0.31 ATR) below the left shoulder.
Then price closed above the previous structural high 259.6 (close 260.6). This is a bullish CHoCH: a change of market character.
The left shoulder zone (255.6–257.3) became the QML level: price often returns here before continuing the move.
There were equal lows nearby: they were what price hunted.
Structure on 15m: bearish (against this idea).
Structure on 1h: bullish (supports the idea).
On the break candle the aggressive flow went against the break (48% of volume).
There was absorption on the candle that returned to QML: big volume, aggressive flow against the move and a close with a bounce.
Result: the idea was cancelled.
This is a scenario built from market data, not a guarantee of the result.