Relative Equal Highs/Lows by tncylyvRelative Equal Highs/Lows
Relative Equal Highs/Lows (REH/REL) is a technical analysis utility designed to identify significant liquidity pools based on Smart Money Concepts (SMC). Unlike standard support and resistance tools that look for single touches, this script identifies sequences of swing points that form relatively flat or slightly stepping structures.
These structures typically represent engineered liquidity or inducement levels where stop-losses are clustered. The indicator visualizes these areas and projects the price level that is likely to be targeted by future price action.
Core Concepts
Relative Structure Detection
Markets rarely form perfectly equal double tops or bottoms to the exact tick. This indicator detects "Relative" Equal Highs or Lows by analyzing a sequence of swing points. It looks for a user-defined number of swings (default is 3) that occur within a specific point threshold of each other, forming a trendline liquidity or flat structure.
Validation System (Noise Reduction)
A distinct feature of this script is its validation mechanism. When a potential pattern is detected, it is not drawn immediately. Instead, it enters a "pending" state for a specific number of bars.
• If price immediately breaks the level during this wait period, the pattern is discarded as noise.
• If the level remains unmitigated after the wait period, it is confirmed and drawn on the chart.
This logic helps reduce clutter and false signals caused by immediate volatility.
Standard Data Integrity
The indicator explicitly requests standard ticker data for all calculations. This ensures that even if you are viewing Heikin Ashi, Renko, or other synthetic chart types, the liquidity levels remain accurate to the real market OHLC prices.
Key Features
• Customizable Swing Detection: You can define how many swings are required to form a pattern (e.g., 2 for double tops/bottoms, 3 or more for extended liquidity pools).
• Gap Management: Options to enforce a minimum number of bars between swings to ensure the structure covers a significant timeframe.
• Mitigation Handling: Choose exactly how a level is considered broken (Wick Touch, Candle Close, or Sweep/Rejection).
• Visual Connectors: Optional dotted lines connect the specific pivot points used to derive the level, helping you visualize the structure of the liquidity.
Settings Overview
Pivot Length
Determines the lookback period to define a Swing High or Low. Higher values will identify more significant market structures.
Max Step Difference (Points)
This is the tolerance range allowed between consecutive swing points. Since this calculates based on raw points, this value must be adjusted significantly depending on the asset class (e.g., Forex pairs versus Crypto or Indices) to match the price scale of the instrument.
Required Swings Amount
The number of swing points required to confirm a pattern.
Min Bars Between Swings
Ensures that the detected pivots are distinct and spaced out by a minimum amount of time.
Validation Wait (Bars)
The duration a pattern must survive before being rendered. Increasing this value filters out structures that are immediately swept.
Mitigation Mode
• Wick Touch: The level is mitigated as soon as a wick touches it.
• Close Through: The level is only mitigated if a candle closes beyond it.
• Sweep Reject: The level is mitigated only if price sweeps it but closes back inside the range.
Visualization
Controls the colors, line styles, and line widths for both active and mitigated levels. Connectors can be toggled on or off to show the path of the swing points.
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