Timeline
- Liquidity formed: local low 100.1 (left shoulder)
- Structural high 100.3 confirmed
- Price took out the liquidity beyond the left shoulder
- Head 100 confirmed
- CHoCH: close above the structural high 100.3. Quasimodo confirmed
- Price is approaching QML
- Price is approaching QML
- Price entered the QML zone
- Idea cancelled: Close below the head (100.0)
Why this setup was found
First the market formed a local low 100.1 (left shoulder). Stop orders piled up below it, that is, liquidity.
Then price took that liquidity: the head reached 100, which is 0.09000 (0.28 ATR) below the left shoulder.
Then price closed above the previous structural high 100.3 (close 100.4). This is a bullish CHoCH: a change of market character.
The left shoulder zone (100.1–100.2) 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 (63% 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.