ICT Equilibrium (EQ) Explained

What is Equilibrium in ICT?

The 50% midpoint of a defined dealing range, separating premium from discount.

Definition of Equilibrium

EQ = (range high + range low) / 2.

How to identify Equilibrium

Mark the selected range high/low and calculate the midpoint; reassess only when the range changes.

Bullish Equilibrium example

price below EQ is in discount and may be considered for long setups.

Bearish Equilibrium example

price above EQ is in premium and may be considered for shorts.

Equilibrium chart examples

Practical trading example

For a 100–120 range, EQ is 110; prices below 110 are discount and above 110 premium.

Common mistakes and important notes

EQ is a relative midpoint, not a fair-value estimate or guaranteed reversal level.

Related ICT concepts

Part of Market Structure. New to ICT? Start with the beginner guide.