Equal Highs And Lows As Liquidity Targets
A 1-minute lesson from the MarketPro academy, one of 22 in smart money concepts.
When price prints two or more swing highs (or lows) at nearly the same level, it creates a visually obvious "double top" or "double bottom" style pattern that smart money concepts treat primarily as a liquidity pool rather than a reversal signal on its own. Traders naturally place stop losses just beyond equal highs or lows, and breakout traders often place entry orders in the same spot.
When price prints two or more swing highs (or lows) at nearly the same level, it creates a visually obvious "double top" or "double bottom" style pattern that smart money concepts treat primarily as a liquidity pool rather than a reversal signal on its own.
Why Equal Levels Attract Attention
Traders naturally place stop losses just beyond equal highs or lows, and breakout traders often place entry orders in the same spot. That clustering of orders makes the level an attractive target for price to reach, since a move through it can trigger a burst of orders that fuels further movement in that direction.
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