Points of Interest (POI)/
Equal Highs (EQH)
TL;DR
Equal Highs (EQH) is a formation where price tests the exact same resistance level twice. Above it, Stop Loss orders from short positions accumulate — forming a pool of Buy Side Liquidity (BSL) that Smart Money must sweep before any sustained move lower.
How It Works
- 1
Price rises to level X, creating Swing High 1 (SH1), then pulls back — not enough momentum to continue higher.
- 2
Market retraces downward, building a local low that becomes the future take-profit target after entry.
- 3
Price rises again toward X, creating Swing High 2 (SH2) at the same or marginally lower level — the Equal Highs formation is now confirmed.
- 4
Above level X, Stop Losses from short positions accumulate — this is Buy Side Liquidity (BSL), a liquidity pool clearly visible to Smart Money.
- 5
Smart Money initiates a brief push above EQH (stop hunt), sweeping all available liquidity above the cluster.
- 6
After collecting BSL, a strong bearish candle (Displacement) appears — price closes decisively below EQH, signaling the end of the manipulation phase.
When the system detects an EQH formation, the algorithm evaluates the depth of accumulated liquidity above both highs, sweep volume, and the Premium/Discount context of the internal range. The BSL sweep typically manifests as a single wick candle that breaches the equal highs before aggressively closing back below. LiquidMind watches for the Displacement candle to reclaim below the EQH level as confirmation, then sets the SL above the sweep wick and TP at the nearest FVG or Order Block below the EQH zone.