Equal highs & lows
Too clean to be safe
Two or more highs at almost the same price look like solid resistance, so many traders put stops just above them. To large players, equal highs and equal lows are targets, not walls.
Test yourself
Price made two highs at the same level. Where is liquidity resting?
Just above the equal highsStops and breakout orders pile up just above equal highs.
Price made two lows at the same level. Where is liquidity resting?
Just below the equal lowsBuyers' stops sit just below equal lows.
Why are equal highs called "too clean"?
Obvious levels attract stops, which makes them a magnet for priceThe more obvious the level, the more orders rest there.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.