Introduction
The Illusion of Resistance
Retail traders see Equal Highs
and think “strong resistance.”
Smart Money sees something very different:
resting liquidity, untouched stop losses,
and a future target waiting to be taken.
📍 Equal Highs aren’t barriers, they’re magnets.
What Are Equal Highs?
The Definition:
📊 Equal Highs occur when price forms two or more highs
at the same level, creating a clean, flat line on the chart.
They represent:
- Uncollected buy-side liquidity
- Clustered stop losses
- A future sweep zone
- A level Smart Money will target
💬 In simple terms:
Equal Highs = liquidity waiting to be taken.
📍 The cleaner the highs,
the more likely price will attack them.
Why Equal Highs Matter
Equal Highs help traders identify:
- Where liquidity is resting
- Where Smart Money will target next
- Potential manipulation points
- High-probability sweep zones
- Future displacement opportunities
💡 Equal Highs don’t reject price, they attract it.
How Smart Traders Use Equal Highs
1️⃣ Mark Equal Highs as liquidity zones
2️⃣ Wait for the sweep, don’t preempt it
3️⃣ Look for displacement after the attack
4️⃣ Identify the imbalance left behind
5️⃣ Enter on mitigation, not the breakout
📍 Equal Highs give clues,
displacement gives confirmation.
Example
Sweep → Displacement
Price forms two Equal Highs during Asia.
London open pushes up
and takes the highs by a few pips.
Breakout buyers enter.
Stops get triggered.
Smart Money fills sell orders.
Then a sharp bearish displacement confirms the intention.
A clean FVG forms,
mitigation follows,
and delivery begins downward.
💬 The Equal Highs weren’t a ceiling,
they were bait.
The Do Nots
Common Mistakes Traders Make
❌ Treating Equal Highs as resistance
❌ Buying the breakout
❌ Trading before the sweep
❌ Ignoring displacement confirmation
❌ Not journaling liquidity behaviors
💬 If you trade Equal Highs incorrectly,
you become the liquidity.
Final Thoughts
Equal Highs aren’t protective levels,
they’re targets.
Smart Money uses them to gather fuel,
trap retail traders,
and create clean entries for displacement.
If you understand Equal Highs,
you understand liquidity,
and if you understand liquidity,
you understand the market.