Look at almost any chart and you will see two highs sitting at nearly the same price, or two lows lined up like a floor. Traders draw a line under them and call it support or resistance. ICT traders call them equal highs (EQH) and equal lows (EQL), and they read them differently: not as a wall that holds, but as a pool of resting orders that price may come to collect.
Why equal levels hold liquidity
When two swing highs form at the same price, many traders place their stop-loss orders just above them. Breakout traders place buy orders there too. That is a lot of orders in one spot. This is the idea behind buy-side and sell-side liquidity: equal highs are buy-side liquidity, equal lows are sell-side liquidity.
The more obvious the level looks, the more orders sit behind it. That is why a clean double top or a triple bottom is often a target for price, not a safe place to trade against.
How the ICC Charts engine finds them
"Equal" is not exact. Prices are rarely identical, so the engine uses a tolerance that scales with volatility:
- It starts from confirmed swing highs (or swing lows).
- Two or more swings on the same side that sit within 0.1 x ATR of each other form a cluster.
- If price raided the level between two swings, the cluster is dropped, because that liquidity is already gone.
Using ATR means the tolerance is wider on a volatile day and tighter on a quiet one. Turn on the Liquidity layer in the terminal and it draws BSL / SSL lines, marks equal highs and lows, and shows swept levels.
What a sweep looks like
A sweep is a raid on the level followed by a quick return. In the engine's default settings, price trades beyond the level and then closes back on the original side within 3 candles. If it keeps closing beyond the level instead, that is not a sweep; that is a run, and the level has simply been broken.
An example on a 15-minute chart (numbers are only an illustration):
- Two highs form at 1.0850 and 1.0852 during the Asian session. They are inside the tolerance, so they are EQH.
- In the London killzone, a candle spikes to 1.0861 and then closes back at 1.0846.
- Stops above the highs were triggered, the level is marked as swept, and the next question is whether price shows a reversal.
How traders use EQH and EQL
As a target
If you are long and a clean EQH sits above, it is a natural place to take profit, or at least to expect a reaction. This ties in with draw on liquidity: price often travels toward the nearest obvious pool.
As a trigger for a reversal idea
After a sweep, many traders wait for confirmation instead of fading it blindly. A typical checklist:
- The sweep happened at a meaningful time, such as a killzone.
- Price shows a market structure shift on a lower time frame, ideally with displacement.
- An entry area appears, such as a fair value gap, with a stop beyond the sweep.
Models such as the Judas swing and turtle soup are built on exactly this raid-then-reverse pattern. The models page lists every model the scanner checks.
Common mistakes
- Trading the break as a signal. A wick through EQH is not a buy. Wait to see whether it closes back or keeps going.
- Putting your stop right at the level. That is where everyone else's stop is. Think about where your idea is wrong, not where the line is.
- Calling everything equal. Two highs far apart on a slow trend are not a pool. Use a tolerance rule, not a feeling.
- Ignoring the trend. In a strong trend, equal levels in the direction of the trend often get run through, not reversed.
- Forgetting the time frame. EQH on a daily chart matters more than a pair of highs on the 1-minute chart.
Practise
Open a chart, switch on the Liquidity layer, and scroll back a week. Mark every EQH / EQL the engine shows, then note which were swept, which were run through, and which were never touched. A few days of this teaches more than any rule. The free Chart Challenge also lets you train on real candles.
Education only. ICC Charts is not affiliated with Inner Circle Trader (Michael J. Huddleston); these ideas are explained in our own words. Equal highs and lows are not signals on their own. Trading involves risk; practise on a demo account first.
Open ICC Charts in your browser, free, with the ICT and VSA layers and the model scanner. Or practise on past charts in the free Chart Challenge game.
Open it on the chart → Play the chart gameNew articles and the daily chart challenge on Telegram → t.me/icccharts
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