Premium vs discount

Order Blocks & Premium/Discount

Splitting the range in half

Split any trading range in half. The top 50% is premium, expensive relative to the range. The bottom 50% is discount, cheap relative to the range. The midpoint itself is equilibrium.

Buy cheap, sell expensive

The basic rule of thumb: look to buy from discount and look to sell from premium. Buying in premium means paying up near the expensive end of the range, a worse average price.

The zones reset with the range

Premium and discount aren't fixed labels, they update every time the range itself changes. A new swing high or low resets where the 50% equilibrium line actually sits.