Liquidity sweeps and swing failure (SFP): PDH, PDL, Asia and equal highs

Every obvious high or low has orders resting beyond it: stop losses from traders on one side and breakout orders from traders on the other. That pool of orders is liquidity. Large players need it to fill big positions, so price is drawn to it.

• PDH and PDL: yesterday’s high and low, watched by everyone.
• Asia high and low: the quiet overnight range that London likes to run.
• EQH and EQL: equal highs or lows, double tops and bottoms that hold a lot of stops.

RTC draws PDH and PDL in gold and adds a tick when a level is swept. A sweep that closes back inside the previous day range is often the start of the day’s real move.

In the Asia session gold usually moves in a tight range. London often opens by running one side of it, triggering the stops, and then turns. RTC marks the Asia high and low (ASH, ASL) on M5, M15 and H1.

Equal highs or lows look like strong resistance or support to most traders, so they put their stops just beyond them. That makes them a target. RTC marks them in green as EQH and EQL.

A swing failure (SFP) is the sweep itself: a wick through a swing high or low that closes back inside. The stops were taken but the break failed. RTC marks each one with a red cross.

1. Find the liquidityPDH, PDL, Asia, EQH or EQL.
2. Wait for the sweepA wick beyond the level.
3. Check the closeIt must close back inside.
4. Wait for a shiftA CHoCH in the other direction.
5. Use a zoneEnter at an order block or gap left by the shift, with the stop beyond the sweep.