Equal Highs / Equal Lows

What Are Equal Highs and Equal Lows

Equal Highs (EQH) and Equal Lows (EQL) are levels where price has formed two or more swing highs or swing lows at virtually the same price. These levels act as liquidity magnets because retail traders place breakout orders and stop losses at these points, creating a massive pool of liquidity that institutions will look to capture.

How to Identify Them

1. Look for two or more swing highs that touch the same price level (or very close to it).
2. Look for two or more swing lows that touch the same price level.
3. The more times price touches the level without breaking it, the more liquidity accumulates.
4. They are especially visible on the 1H, 4H, and Daily timeframes.
5. They resemble “double tops” or “double bottoms” from classical analysis, but carry a very different interpretation.

How to Use Them in Trading

• EQH/EQL are liquidity traps, not support/resistance. They will be swept.
• Do not place stop losses just below equal lows or above equal highs.
• Wait for a sweep of these levels and look for a reversal (CHoCH + OB) as your entry.
• In a bullish context, EQL will be swept to fuel long entries. In a bearish context, EQH will be swept to fuel short entries.

Difference from Classical Support/Resistance

Classical analysis says: “if price touches a level many times, it is strong support.” SMC says: “if price touches a level many times, it is accumulating liquidity to break it.” This shift in perspective is fundamental to understanding institutional order flow.