What it looks like
Two swing lows (each a low with higher lows either side) within a few points of each other, separated by a bounce. On gold that might be two lows within 1 to 2 points on a 15 minute chart; on US30, within 10 to 20 points. Both lows are visible to anyone looking at the chart, which is what makes them matter.
What it means
Traders who buy near equal lows usually place their stops just below them, and breakout sellers place orders there too. That cluster of orders is liquidity: a place where large orders can be filled. Price is often drawn down to it before deciding direction. So equal lows are better read as a target for the next push down than as a reliable floor.
How to trade it
- 1
Mark the equal lows and treat the area just below them as a target, not a floor.
- 2
Confirmation: price trades below the lows and then a candle closes back above them (the snap back).
- 3
Entry: buy on that close back above the level.
- 4
Stop: below the lowest point of the sweep. Example on gold: equal lows at 4,020, a sweep to 4,014, a close at 4,023. Buy at 4,023, stop at 4,012, an 11 point risk.
- 5
Target: the high between the two lows, or the next level above.
Price closes below the equal lows and stays there, with following candles unable to get back above.
Where it works best
On 5 minute to 1 hour charts on gold and indices, especially near session opens when stops are commonly run.
WickSpeak marks equal lows automatically and names them on the candles that made them. The note explains what they are, how traders handle the sweep and that a close below the level that holds proves the idea wrong. In Playbook you can use it as a condition in a play, alone or alongside other patterns and indicators (any of the 146 patterns can be a condition), and backtest it on past candles with your own costs.
Common mistakes
- Buying at the equal lows themselves as if they were solid support.
- Selling the first break below them, which is often the sweep that traps sellers.
- Marking lows that are not really equal, so the stop pool is spread out rather than clustered.
Related patterns
Questions traders ask
What do equal lows mean in trading?
Two lows at almost the same price. Stops tend to gather just below them, so they act as a magnet for price rather than a dependable floor.
Are equal lows support?
They can hold, but they are often swept first. Many traders wait for price to dip below them and close back above before buying.
What is the difference between equal lows and a double bottom?
The shape is the same. A double bottom is traded on a close above the bounce between the lows; equal lows are traded as liquidity, with the trade on the snap back after a sweep.
When do equal lows stop working?
When price closes below them and stays there. That means the stops were taken and sellers kept control, so the snap back did not happen.