The Quasimodo (QM) is a great piece of PA and you can see them everywhere, but they produce fantastic results when combined with other basic forms of technical analysis.
It's very simple and helps you find significance to certain zones. It's where you look to take a reversal entry.
Let's get some simple to digest pictures to show them.
Here's where you look for a QM to short:
And to long:
And some real life practical examples:
Here is where I had marked to take a short on BTCUSD. We have a valid QM setup within a big supply zone (this is where you need to be looking for these QMs). However, I looked past the fact that it had already been invalidated as you can see in the yellow circle. Notice the reaction to it though.
Here is where I should have taken the trade, closer to the limit of supply zone (MPL, as I have written about before)
Again, look at the reaction. Practically pinpoint, as the other one was too.
Sometimes, it takes a while for a left shoulder to be hit, and it could be days, weeks or months before it is, but it will remain active. Let's look at this forex setup:
Sorry for the feint lines. As we can see though, there's a level where a lot of people will look to take a short from which can easily be faked, with the left shoulder of the QM a little bit higher.
These are nothing to do with "head and shoulders" patterns.