Yes, a stop hunt above Equal Highs is a very common event in Price Action Trading. When price reaches a level multiple times and forms nearly identical highs, many traders place buy stop orders above that area, while short sellers often keep their stop losses there. Large market participants understand that significant liquidity exists above these Equal Highs, making it an attractive zone for a liquidity sweep.
During a stop hunt, price may break above the Equal Highs and create the appearance of a strong bullish breakout. This often encourages more traders to enter long positions, expecting further upside. However, once the liquidity above the highs has been collected, price can quickly reverse back below the level. If the breakout lacks strong follow-through, volume remains weak, or candles close with long upper wicks, it may indicate that the move was a liquidity grab rather than a genuine breakout.
For this reason, Equal Highs should be viewed not only as breakout levels but also as important liquidity zones in Price Action Analysis. If price breaks above the highs, holds the level on a retest, and buyers continue showing strength, the breakout may be valid. However, if price quickly returns inside the previous range, there is a strong possibility that the move was simply a stop hunt designed to collect liquidity and trap breakout traders.
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