Points of Interest (POI)/
Equal Lows (EQL)
TL;DR
Equal Lows (EQL) is a formation where price tests the exact same support level twice. Below it, Stop Loss orders from long positions accumulate — forming a pool of Sell Side Liquidity (SSL) that Smart Money must sweep before any sustained move higher.
How It Works
- 1
Price drops to level X, creating Swing Low 1 (SL1), then rebounds — not enough momentum to continue lower.
- 2
Market retraces upward, building a local high that becomes the future take-profit target after entry.
- 3
Price drops again toward X, creating Swing Low 2 (SL2) at the same or marginally higher level — the Equal Lows formation is now confirmed.
- 4
Below level X, Stop Losses from long positions accumulate — this is Sell Side Liquidity (SSL), a liquidity pool clearly visible to Smart Money.
- 5
Smart Money initiates a brief move below EQL (stop hunt), sweeping all available liquidity in the cluster.
- 6
After collecting SSL, a strong bullish candle (Displacement) appears — price closes decisively above EQL, signaling the end of the manipulation phase.
When the system detects an EQL formation, the algorithm evaluates the depth of accumulated liquidity, sweep volume, and the Premium/Discount context of the internal range. The Displacement candle closing above the EQL level confirms the end of the liquidity grab. LiquidMind uses this confirmation as a structural signal within its POI analysis pipeline.