Market Structure & Liquidity · Entry 40 of 71

What Are Equal Highs & Equal Lows?

Retail double tops/bottoms as institutional targets

Core Definition

Equal Highs (EQH) and Equal Lows (EQL) refer to price levels where the market forms two or more highs or lows at nearly the same level. These areas represent massive clusters of liquidity in the market.

Key Characteristics

1. Equal Highs form when price fails to break above a previous high and creates another high at a similar level (retail double top).
2. Equal Lows form when price holds support and creates multiple lows at a similar level (retail double bottom).
3. These levels commonly attract stop-loss orders placed by retail traders who believe the support or resistance is holding. Because many stops accumulate above equal highs and below equal lows, these zones often become primary targets for liquidity grabs.