Timeline
- Liquidity formed: local low 0.5075 (left shoulder)
- Structural high 0.5246 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 0.4887 confirmed
- CHoCH: close above the structural high 0.5246. Quasimodo confirmed
- Price entered the QML zone
- Idea cancelled: Close below the head (0.4887)
Why this setup was found
First the market formed a local low 0.5075 (left shoulder). Stop orders piled up below it, that is, liquidity.
Then price took that liquidity: the head reached 0.4887, which is 0.01877 (1.82 ATR) below the left shoulder.
Then price closed above the previous structural high 0.5246 (close 0.5268). This is a bullish CHoCH: a change of market character.
The left shoulder zone (0.5075–0.5085) 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: bearish (against this idea).
On the break candle aggressive buyers dominated (51% 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.