Some liquidity is thicker than others. The best trades hunt the obvious pools — the places the most traders have parked orders.
Named pools worth marking:
- Equal highs / equal lows (EQH / EQL) — two or more highs (or lows) at the same price. They look like a "double top" to the crowd, so stops pile up just beyond. Engineered liquidity, almost begging to be swept.
- Previous day / week high & low (PDH/PDL, PWH/PWL) — reference levels everyone watches.
- Session highs & lows — Asian range, London high/low.
- Trendline liquidity — stops resting under an obvious rising trendline.
Why "obvious" is the point. Liquidity forms because a level is obvious. The more traders who see the same double top and set stops above it, the juicier the pool — and the more likely price pays it a visit.
When you mark a chart, don't just draw support and resistance. Draw the pools: the specific highs and lows where you'd expect stops. Those are the magnets and the traps.