Wick

Equal highs & lows

Liquidity & Stop Hunts

Two touches, one target

Two or more highs printing at nearly the same price look like a ceiling. To smart money it reads differently: a stacked, easy-to-calculate pool of buy-stops sitting just above that exact price.

Triple tops are bait, not walls

The market loves round numbers of touches. A third touch of the same high often isn't the level finally failing. It's the spot with the fattest liquidity pool, primed for one clean sweep before reversing.

Near enough counts as equal

You don't need textbook-perfect equal highs. Two closes within a few ticks of each other still draw the same behavior. The market rounds to 'close enough' when it hunts, it doesn't need pixel-perfect matches.

Check yourself

Why do equal highs attract MORE stops than a single, unrepeated high?

  1. Every retest convinces more breakout traders to place buy-stops on the identical line correct
  2. They don't, one high is the same as three
  3. Equal highs always have lower volume

Each retest reinforces the level as resistance, recruiting fresh buy-stops from traders betting on the breakout.

Learn this properly

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