Equal Highs (EQHs)

Identification Rules

Learn to spot when price forms two peaks at nearly identical levels.

  • Identify a swing high that is higher than surrounding price action
  • Price must later retest this swing high level
  • Price must reject at or near the swing high level
  • The original swing high must be higher than the candle that retests it

Entry Rules

Discover the optimal timing and price levels to enter EQH trades.

  • Use EQHs for trend bias confirmation, not direct entries
  • Combine with bearish Fair Value Gaps for entry signals
  • Enter short positions only after EQH confirms bearish bias

Stop Rules

Know exactly where to place stops to protect your capital effectively.

  • Place stops above the Equal High level
  • Use conservative stop placement on higher timeframes

Target Rules

Set realistic profit targets based on key support and resistance levels.

  • Target bullish order blocks below
  • Target key support levels
  • Target buy side liquidity areas

Confluence Factors

Additional signals that boost the reliability of your EQH setups.

  • Bearish Fair Value Gaps nearby
  • Bearish Order Blocks in the area
  • Supply zones at the Equal High level
  • Higher timeframe resistance
  • Market structure shift confirmation

Failure Modes

Common scenarios where EQH patterns break down and fail to deliver.

  • False breakout above Equal Highs
  • Consolidation instead of reversal
  • Weak rejection at the level

Common Mistakes

Typical trading errors that reduce EQH success rates and how to avoid them.

  • Using EQHs as direct entry signals
  • Trading without additional confluence
  • Ignoring timeframe context
  • Not waiting for proper rejection