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Equal Highs / Lows Liquidity Runthe pool you can see

Evidence: ModerateIntermediatePrice Action · Liquidity

When two or three highs form at almost the same price, a visible pool of liquidity builds above them — the stop of everyone who sold there, plus every breakout buy order.

The setup: price runs that pool with a wick and closes back below it. The trade is the reversal.

The difference from the previous-session sweep is where the level comes from. There it was external — yesterday's high. Here the current price action built it itself, and its signature, the equal highs, is visible on the chart.

Category
Price Action · Liquidity
Timeframe
M5 primary · M15 context
Suitable pairs
AUDUSD · EURUSD · GBPUSD · USDJPY
Session
London and New York
Indicators / tools
A horizontal level with a tolerance band · ATR(14)

Valid setup

S24 · EQUAL HIGHS LIQUIDITY RUN → REVERSAL — VALID SETUP AUDUSD · M5 · equal highs are the clearest visible signature of resting stop orders SHORT 0.66043 0.66105 0.66166 0.66227 0.66288 0.66349 0.66411 EQUAL HIGHS — tolerance band ≈ 0.35 × ATR ENTRY on the close back below SL above the run +2R reference 1R +2R 1 2 3 4 5 6 7 ①②③ Three highs within a tight tolerance. Every trader who shorted those highs has a stop just above them — and every breakout buyer has an order there too. That is a liquidity pool you can actually see. ④ The RUN: price trades through the pool, wick only ⑤ Close back below the equal-highs level — the pool has been consumed and price did not stay up there ⑥ Entry ⑦ Target: the low that created the pool 0.66313 0.66296 0.66272 0.66190 liquidity run

Exact rules

Entry

  • Identify two or three highs that sit within a tolerance band of 0.35 × ATR.
  • The equal-highs level is the average of those highs — or the highest of them.
  • Run: an M5 candle whose high goes above the level but whose close comes back below it.
  • Confirmation: the next candle also closes below the level.
  • Sell at the close of the confirmation candle. Mirror the rule for equal lows.

Stop loss

  • 0.15 × ATR(14) above the high of the run candle.
  • If price closes above that high, the pool funded a continuation rather than a reversal.
  • Risk 0.5% per trade.

Take profit / exit

  • TP1 = a 50% retracement of the swing that built the pool.
  • TP2 = the low that created the pool — the lowest low between those equal highs.
  • A minimum of 1:2 measured to the run candle's high.

Build Equal Highs / Lows Liquidity Run

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Trading carries risk and most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade. The chart is an illustration of the rules on constructed candles — it is not a record of a trade and not a backtest.