Equal High/Low (EQH/EQL) [AlgoAlpha]

OVERVIEW
This script detects and visualizes Equal High (EQH) and Equal Low (EQL) zones—key liquidity areas where price has previously stalled or reversed. These levels often attract institutional interest due to the liquidity buildup around them. The indicator is built to highlight such zones using dynamic thresholding, overbought/oversold RSI filtering, and adaptive mitigation logic to manage zone relevance over time.

CONCEPTS
Equal Highs/Lows are price points where the market has repeatedly failed to break past a certain high or low, hinting at areas where stop orders and pending interest may be concentrated. These areas are often prime targets for liquidity grabs or reversals. By combining this with RSI filtering, the script avoids false signals during neutral conditions and instead focuses on zones where market pressure is more directional.

FEATURES

1. Detection Logic: The script identifies EQH and EQL zones by comparing the similarity between recent highs or lows with a dynamic volatility threshold. The `tolerance` input allows users to control how strict this comparison is.
   
2. RSI Filtering: If enabled, it only creates zones when RSI is significantly overbought or oversold (based on the `state_thresh` input). This helps ensure zones form only in meaningful market conditions.
   
3. Zone Display: Bullish (EQL) zones are shown in grey, while bearish (EQH) zones are in blue. Two horizontal lines mark the zone using wick and body extremes, and a filled area visualizes the zone between them.
   
4. Zone Management: Zones automatically extend with price until they’re invalidated. You can choose whether a zone is removed based on wick or body sweeps and whether it requires one or two candle confirmations. Zones also expire after a customizable number of bars.
   
   
   
5. Alerts: Four alert conditions are built in—when a new EQH/EQL is formed and when one is mitigated—making it easy to integrate into alert-based workflows.
   

USAGE
Equal highs/lows can be used as liquidity markers, either as entry points or as take-profit targets.



This tool is ideal for liquidity-based strategies and helps traders map out possible reversal or sweep zones that often precede aggressive moves.