Timeline
- Liquidity formed: local low 0.4294 (left shoulder)
- Structural high 0.4389 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 0.4201 confirmed
- CHoCH: close above the structural high 0.4389. Quasimodo confirmed
- Price is approaching QML
- Price entered the QML zone
- Idea cancelled: Close below the head (0.4201)
Why this setup was found
First the market formed a local low 0.4294 (left shoulder). Stop orders piled up below it, that is, liquidity.
Then price took that liquidity: the head reached 0.4201, which is 0.009360 (0.84 ATR) below the left shoulder.
Then price closed above the previous structural high 0.4389 (close 0.4404). This is a bullish CHoCH: a change of market character.
The left shoulder zone (0.4294–0.4315) became the QML level: price often returns here before continuing the move.
There were equal lows nearby: they were what price hunted.
Structure on 1h: bullish (supports the idea).
On the break candle aggressive buyers dominated (67% 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.