M3 · L2Liquidity & Stop Hunts
Equal Highs and Equal Lows = Liquidity
When price touches the same level twice, retail traders put stops there — making it a target for banks.
What This Means
Equal highs (two or more swing highs at the same price) tell banks exactly where to find buy stops. Equal lows tell banks where sell stops are clustered. These levels are called Buy Side Liquidity (BSL) above price and Sell Side Liquidity (SSL) below price. Banks hunt these before making their real move.
Visual
The Rule
Equal highs = buy stops above = bank will sweep it before going down. Equal lows = sell stops below = bank will sweep it before going up.
COPY THIS
Do these steps exactly1
Open any chart and look for two swing highs at the same price level
2
Draw a horizontal line connecting them
Label it 'BSL — Buy Side Liquidity'
3
Now look for two swing lows at the same price
4
Draw a line connecting them
Label it 'SSL — Sell Side Liquidity'
5
Mark your expectation: price will sweep the BSL or SSL before making a significant move in the opposite direction
Common Mistake
Equal highs and equal lows don't always get swept immediately. Sometimes price consolidates for days before the sweep happens.