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#3 EQ Setup
A pullback setup within the HTF trend. Internal structure pushes price into premium or discount — beyond the range midpoint — and an internal CHoCH confirms the rejection back toward EQ in the direction of the HTF trend.
EQ (Equilibrium) fires when an internal SFP extends price into premium (above EQ) or discount (below EQ), and an internal CHoCH confirms the move back toward the midpoint — in the direction of the HTF trend.
Price over-extends within the range, gets rejected, and resumes the trend back toward EQ.
Requirements
| 1. | EQ level — active HTF range with a defined equilibrium midpoint (50% of range, the 0.5 Fibonacci level). |
| 2. | i-SFP — Internal SFP. Direction is strict: a bearish i-SFP must wick into premium (above EQ); a bullish i-SFP must wick into discount (below EQ). An i-SFP on the wrong side does not qualify. |
| 3. | Internal CHoCH — confirms the setup while price is still extended. Both the i-SFP and the CHoCH must be on the same side of EQ: both in premium (bearish setup) or both in discount (bullish setup). The CHoCH does not need to cross back through EQ to confirm. |
Example

BTCUSDT 1H / 12H — bearish HTF trend. Internal SFP (red triangle) wicks into premium above EQ. Internal CHoCH confirms. Price resumes bearish trend back toward EQ.
Best For
Range-bound markets oscillating around the EQ midpoint.
Works best on instruments that respect range structure.
INFO
Premium = above EQ — expect selling pressure.
Discount = below EQ — expect buying pressure.
