RQF Pattern Sequence¶
The Range Qualification Framework (RQF) is a systematic approach to identifying high-probability reversal setups using ICT concepts.
The Complete Sequence¶
┌────────────────────────────────────────────────────────────────────────────┐
│ RQF BULLISH SETUP (LONG) │
└────────────────────────────────────────────────────────────────────────────┘
UPTREND BoS SWEEP MSS
│ │ │ │
▼ ▼ ▼ ▼
═════════════
BoS ────▶ Price breaks BELOW swing low
═════════════
│
▼
┌───┐
│ S │ ────▶ Wick BELOW BoS, closes ABOVE (Sweep)
└───┘
│
│ ◄──── TH (Trigger High) = Highest high since BoS
│
═════════════
MSS ────▶ Price breaks ABOVE TH (reversal confirmed)
═════════════
│
┌────┴────┐
│ Discount│
│ Zone │ ────▶ Entry zone (0.0 to 0.382 Fib)
│ + OB │
└─────────┘
Stage 1: Break of Structure (BoS)¶
What it is: Price breaks a significant swing point, indicating potential trend change.
For Bullish Setup (Long):
- Price breaks below a swing low
- This is a bearish BoS in an uptrend
- Indicates possible reversal setup forming
HH
╱ ╲
╱ ╲
HL ╲
╲
╲
════════════╳══════════════ BoS Level (broken swing low)
╲
LL ← New low after BoS
State Transition
rqfBullState: 0 → 1
Now looking for sweep.
Stage 2: Sweep (Liquidity Grab)¶
What it is: Price wicks beyond the BoS level but closes back above/below it.
Characteristics:
- Wick extends beyond the level (grabs liquidity)
- Close returns inside (trap completed)
- Labels: S1, S2, S3... (multiple sweeps possible)
════════════════════════════ BoS Level
│
│
│ ← Wick BELOW level
┌──┴──┐
│ │
│ S1 │ ← Close ABOVE level
│ │
└─────┘
State Transition
rqfBullState: 1 → 2
Now tracking Trigger High (TH) and looking for MSS.
Trigger High (TH)¶
After a sweep, we identify the Trigger High - the highest point between the BoS bar and the sweep bar.
TH ──────────────────── Highest high since BoS
╱│╲
╱ │ ╲
╱ │ ╲
╱ │ ╲
═════╪═════════════════════ BoS Level
│ │
│ ┌───┴───┐
│ │ S1 │
│ └───────┘
│
BoS Bar
Stage 3: Market Structure Shift (MSS)¶
What it is: Price breaks above the Trigger High, confirming the reversal.
Confirmation:
- Close above TH (for bullish MSS)
- This shifts market structure from bearish to bullish
- Fibonacci levels are drawn
══════════════════════ MSS (breaks TH)
╱
╱
TH ──────╱───────────────
╱ ╱
╱ ╱
╱ ╱
════════════════════════════ BoS Level
│
┌───┴───┐
│ S1 │
└───────┘
State Transition
rqfBullState: 2 → 3
Fibonacci drawn, looking for entry in discount zone.
Stage 4: Entry Zone¶
What it is: Price retraces to the discount zone with OB/FVG confluence.
Fibonacci Zones¶
After MSS, we draw Fib from the Sweep Low (0.0) to the range High (1.0):
| Zone | Fib Range | Meaning | Action |
|---|---|---|---|
| Discount | 0.0 - 0.382 | Deep retracement | BUY |
| Auction | 0.382 - 0.618 | Fair value | Wait |
| Premium | 0.618 - 1.0 | Shallow retracement | Risky |
1.0 ┌─────────────────────┐ HH (range high)
│ PREMIUM │ ← Avoid for longs
0.786├────────────────────┤
│ │
0.618├────────────────────┤
│ AUCTION │ ← Wait
0.5 ├────────────────────┤
│ │
0.382├────────────────────┤
│ DISCOUNT │ ← ENTRY ZONE
0.236├────────────────────┤
│ ┌────────┐ │
0.0 └────│ OB │──────┘ Sweep Low
└────────┘
Confluence Factors¶
Entry is strongest when multiple factors align:
- Price in discount zone (0.0 - 0.382)
- Order Block present
- Fair Value Gap overlap
- Higher timeframe agrees
- NY AM session
Entry Signal
When price enters discount zone with OB or FVG confluence:
"▲ LONG" signal appears
Bearish Setup (Short)¶
The bearish setup is the mirror image:
| Stage | Bullish (Long) | Bearish (Short) |
|---|---|---|
| BoS | Break below swing low | Break above swing high |
| Sweep | Wick below, close above | Wick above, close below |
| MSS | Break above TH | Break below TL |
| Entry | Discount zone (bottom) | Premium zone (top) |
┌────────────────────────────────────────────────────────────────────────────┐
│ RQF BEARISH SETUP (SHORT) │
└────────────────────────────────────────────────────────────────────────────┘
DOWNTREND BoS SWEEP MSS
│ │ │ │
▼ ▼ ▼ ▼
═════════════
BoS ────▶ Price breaks ABOVE swing high
═════════════
│
▲
┌───┐
│ S │ ────▶ Wick ABOVE BoS, closes BELOW (Sweep)
└───┘
│
│ ◄──── TL (Trigger Low) = Lowest low since BoS
│
═════════════
MSS ────▶ Price breaks BELOW TL (reversal confirmed)
═════════════
│
┌────┴────┐
│ Premium │
│ Zone │ ────▶ Entry zone (0.618 to 1.0 Fib)
│ + OB │
└─────────┘
Failed Sweeps¶
Not every sweep leads to MSS. When a new sweep occurs before MSS:
- Previous sweep labeled as f1, f2... (failed)
- New sweep becomes S(n+1)
- Trigger High recalculated
════════════════════════════ BoS Level
│ │
┌───┴───┐ ┌───┴───┐
│ f1 │ │ S2 │ ← S1 became f1, new sweep is S2
└───────┘ └───────┘
Failed MSS
Multiple failed sweeps indicate strong liquidity - MSS may not occur.
Invalidation¶
Full Invalidation¶
Setup is completely invalid when:
- Price closes beyond the 0.0 level (sweep extreme)
- Example: New low below sweep low (bullish setup fails)
Partial Invalidation¶
Setup is partially invalid when:
- Price crosses sweep level without proper MSS
- State resets to 1 (BoS still valid)
Real Chart Example¶
┌─────────────────────────────────────────────────────────────────┐
│ ▲ │
│ ╱───╱ │
│ ┌───────────┐╱ │
│ TH ─────────────▶│ │ │
│ ╱ │ MSS │ │
│ ╱ └───────────┘ │
│ ╱╲ ╱ │ │
│ ╱ ╲ ╱ │ │
│ ╱ ╲ ╱ ┌────┴────┐ │
│ ╱ ╲ ╱ │ DISCOUNT│ │
│ HH HL╲ ╱ │ + OB │◀── ENTRY │
│ ╲ ╱ └─────────┘ │
├═══════════╳════════════════════════════════════════ BoS ══════┤
│ ╲ │
│ ╲ │
│ ┌──┴──┐ │
│ │ S1 │◀── Sweep (wick below, close above) │
│ └─────┘ │
└─────────────────────────────────────────────────────────────────┘
Summary¶
| Step | What to Look For | Indicator Shows |
|---|---|---|
| 1. BoS | Price breaks swing point | "BoS" line + label |
| 2. Sweep | Wick beyond, close inside | "S1" label |
| 3. MSS | Break trigger level | "MSS" line + label |
| 4. Entry | Price in zone + confluence | "▲ LONG" or "▼ SHORT" |
Practice
Use TradingView's Bar Replay to practice identifying these sequences in real-time.