EQH and EQL
Two or three highs at the same height. A flat line is an open invitation — and someone always comes for it.
EQH and EQL — what it is?
EQH means two or more highs at the same level. EQL is the same thing for lows. In classical terms it is a double or triple top and bottom.
A flat level reads the same way to every participant. That is why stops pile up beyond it: above EQH sit the sellers' stops, below EQL the buyers'.
The flatter the extremes look, the denser the cluster and the higher the odds price goes to collect it. Equal highs are not resistance, they are a signpost.
EQH and EQL — how it is built?
Extremes count as equal when they differ by a small fraction of the daily range. An exact match is not required — what matters is that the level reads as flat to the eye, because that is how the crowd reads it.
EQH and EQL — common mistakes
Trading a bounce off equal highs.
Placing your stop right behind them.
Demanding an exact match to the tick.
Treating an EQH sweep as a reversal without confirmation from structure.
Related to
Glossary
- equal highs
- two or more highs at the same level. Orders pile up under and above them.
- equal lows
- the mirror construction.
- Triple top
- three highs at the same level.
- range
- movement inside a horizontal corridor with no clear direction.
- resistance
- a level price has previously bounced down from.
- tick
- a single change in price.