# Liquidity Pools

> Marks equal highs and equal lows – clusters of swing points at nearly the same price where stop orders tend to rest – as labelled boxes.

Updated: 2026-10-25T01:30:08.000Z · https://chartrider.com/docs/indicators/liquidity-pools/

## What you see
One box per cluster, from its first to its last swing, labelled with the price range of the cluster:
- "Equal Highs: … – …" for clusters of swing highs, in Sell Side Color.
- "Equal Lows: … – …" for clusters of swing lows, in Buy Side Color.

A small orange mark at the right edge of each box shows where the cluster was completed. Boxes are not extended beyond that point.

## How it works
The indicator looks for swing highs (and separately swing lows) – candles that stand out against the Swing Period candles around them – and collects consecutive swings whose price stays within Tolerance % of the first one. When Min Touches swings are collected and no candle in between traded beyond the cluster, it is drawn, and the search continues after it. The completing swing only needs the candles before it, so the box appears as soon as that candle has formed.

## How to read it
Equal highs and equal lows are a classic liquidity concept: many traders place stops just beyond such levels, so price is often drawn to them. A run through a cluster followed by a quick move back inside is read as a stop hunt and a possible turn; a clean break with follow-through suggests continuation. More touches and a tighter tolerance mark cleaner, more obvious levels.

## Using it in strategies
Liquidity Pools is a visual tool: it has no outputs for the [Trade Setup](https://chartrider.com/docs/strategies/trade-setup/) or for `use indicator` in [WickScript](https://chartrider.com/docs/wickscript/). For equal highs and lows with outputs – touches, kills and distances – use [REH / REL](https://chartrider.com/docs/indicators/reh-rel/).

## Settings

Open the settings with the slider icon next to the indicator (Indicators, `F3`). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.

### Inputs

| Setting | Type | Default | Description |
|---|---|---|---|
| Swing Period | Number | `5` | How many candles a swing has to stand out against. Larger values use only more prominent swings. (min 2) |
| Tolerance for Equal Highs/Lows (%) | Number | `0.3` | Maximum price difference, in percent of the first swing, for another swing to count as equal. (min 0) |
| Min Touches equal Level | Number | `2` | Number of equal swings needed for a cluster. (min 2) |

### Styles

| Setting | Type | Default | Description |
|---|---|---|---|
| Sell Side Color | Color | `#FF000080` | Color of the equal-high boxes. |
| Buy Side Color | Color | `#00FF0080` | Color of the equal-low boxes. |

## Outputs

This indicator draws on the chart only – it has no values for Trade Setup gates or `use indicator`.