Premium and Discount divide a price range at its 50% mid-point: above the mid is a premium (expensive) zone, below is a discount (cheap) zone. Smart Money traders prefer to buy in discount and sell in premium.
How traders use it
- Buy in the discount half, sell in the premium half.
- The 50% mid-point (equilibrium) is the pivot.
- Combine with order blocks inside the favoured zone.
See it in dtcharts
Mark order blocks, gaps and liquidity on the chart in the dtcharts terminal with the drawing tools and Smart Money module.