Premium / Discount and Equilibrium

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Buy in the lower half (discount) of a range and sell in the upper half (premium).

How it works

Take a reference range (swing, previous day, week). The 50% level is equilibrium. Below it is 'discount' (institutional buying), above it 'premium' (selling). ICT models only buy in discount and sell in premium of the relevant range.

Step-by-step rules

1. Draw the range of the dominant swing.
2. Mark the 50%.
3. Look for buys only below 50% and sells only above it.

Open in the interactive tool →

Related strategies

Power of Three (PO3 / AMD) · Fair Value Gap (FVG) – retest · Order Block (OB) · PDH/PDL liquidity sweep (Turtle Soup) · ICT Silver Bullet · ICT 2022 model (Sweep + MSS + FVG) · Optimal Trade Entry (OTE 62–79%) · Judas Swing

Educational content. No strategy guarantees profits and past performance does not guarantee future results.