ICT / SMC Concepts · Lesson 09
Equal Lows
Learn how repeated lows around the same price level can reveal an important area in market structure.
What Are Equal Lows?
Equal Lows happen when price forms a meaningful swing low, and later returns to about the same price area without clearly going below it.
In the framework the source uses, traders may read the repeated low as a bullish or support-related clue. It may mark an area of interest. It does not guarantee a reversal.
Your First Equal Lows
Price declines, rallies away, declines again, then turns higher. Nothing is marked yet.
How to Identify Equal Lows
- Step 1: Find a meaningful swing low.
- Step 2: Wait for price to move away from that low.
- Step 3: Watch price return and form another low near the same level.
Start with the first swing low. Price moves away. Now watch the second decline. If the second low forms near the first, that gives us Equal Lows.
Do the Lows Need to Be Identical?
No. Two lows can still count as approximately equal if one is slightly higher or lower. The goal is not perfect numbers. It is seeing that price tested roughly the same structural area.
Low 1: 100.00. Low 2: 100.08. The same area.
Low 1: 100.00. Low 2: 103.00. A different area.
Would You Classify This as Equal Lows?
Look at both examples. Decide first, then read the answer under the chart.
Not Every Candle Low Counts
The first low should be a meaningful swing low. A random wick inside noisy price should not automatically be labelled as an EQL.
A visible decline, then a visible turn.
A small wick inside noise.
What Might Happen Next?
Equal Lows mark an area where price has struggled to move lower. Several things can happen from there:
Two Possible Outcomes
The same Equal Lows. Two different endings.
Why Are Equal Lows Important?
Repeated lows show that price has tested about the same lower area more than once. In the source framework, traders may use this as a bullish clue, or as evidence of a potential support area.
The source also says Equal Lows are usually used together with other context, and that relying on them alone can lead to losses.
Common Mistakes
Forcing perfect equality
Correction: The lows only need to form around approximately the same area.
Marking every small low
Correction: Focus on meaningful swing lows.
Assuming EQL means automatic reversal
Correction: Price can still break below the lows.
Using EQL as an entry by itself
Correction: Treat it as market information, not certainty.
Knowledge Check
Knowledge check
Check 1
A clear swing low, a rally, then a second low at about the same level. Are these Equal Lows?
Knowledge check
Check 2
The second low is significantly higher than the first. Would this normally be considered Equal Lows?
Knowledge check
Check 3
Do Equal Lows guarantee that price will reverse higher?
Your Turn
Can You Find the Equal Lows?
Three candidate lows are lettered. Nothing else is marked.
Which two lows form the EQL?
How to find Equal Lows
- Step 1: Find a clear swing low.
- Step 2: Wait for price to move away.
- Step 3: Watch price return.
- Step 4: Compare the new low with the first.
- Step 5: If they are around the same area, mark EQL.
Where Can Equal Lows Appear?
On many timeframes. The source notes that shorter timeframes may suit intraday traders, while hourly or daily charts can suit traders looking at broader moves. No single timeframe is best for everyone.
What You Learned
- Equal Lows are two meaningful lows around the same price area.
- The lows do not need to be perfectly identical.
- The first low should be a meaningful swing low.
- EQLs may highlight potential support or an important structural area.
- Equal Lows do not guarantee a bullish reversal.
SWING LOW + RETEST NEAR SAME LOW = EQUAL LOWS. An area of interest, not a guaranteed reversal.
+ RETEST NEAR SAME LOW
= EQUAL LOWS
= AREA OF INTEREST
≠ GUARANTEED REVERSAL