So, in the previous example, we see that high resistance low took out previous lows before, and then created a clear run to the top, which implies a strong rollover.

This in turn entails that it will be a lot more difficult for price to retrace through that strong rollover, as direction is concise.

This might look very complicated, but it’s actually quite simple. Both these low resistance highs and lows don’t have a clear rollover, no clear breaks and continuation of trend. Therefore, they function as targets.

Let’s break it down for a minute. In the dashed arrow, we have the scenario that would have made the rollover clear, breaking previous highs and continuing trend in a strong manner. We have that both on the bullish side and bearish side.

Numerous failed breaks, leaving no signs of clear structure from the pivotal points.

Now, go back to the picture on the previous page and notice how it makes sense to target those areas as liquidity. Since there isn’t a clear one-sided direction yet—no consecutive higher highs and higher lows, nor consecutive lower lows and lower highs—it becomes evident why these areas are targeted.

Common areas of low resistance are double bottom/tops with no clear break of previous structure.