Premium and discount are smart-money labels for where price sits inside a defined range (commonly the leg from the most recent swing low to the most recent swing high). The upper portion is 'premium' (overvalued, bias to sell), the lower portion is 'discount' (undervalued, bias to buy), and a narrow band around the 50% mark is 'equilibrium'.
A common parameterisation is the top 5% / bottom 5% / middle 5% of the range — strict thresholds that keep the labels useful. Some setups use larger bands (e.g. upper third / lower third), but the principle is the same: only buy in discount, only sell in premium, treat equilibrium as no-trade.
The framework is essentially the Fibonacci retracement 38.2 / 50 / 61.8 reframed for SMC traders, with the directional bias coming from the larger-timeframe trend.
Formule
range = swing_high − swing_low premium zone = top 5% of range equilibrium = middle 5% of range discount zone = bottom 5% of range
Exemple
Swing low 49,000, swing high 52,000. Range = 3,000. Premium zone ≥ 51,850; discount zone ≤ 49,150; equilibrium ≈ 50,425–50,575.
Comment Noon Barbari utilise Premium / discount / equilibrium
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Premium / discount in noonbarbari →Termes liés
- Structure de marché
Order block
The last opposite-direction candle before a break of structure, used as a supply/demand zone.
- Structure de marché
Fair value gap (FVG)
A three-bar price imbalance where the wicks of bars t and t-2 fail to overlap.
- Structure de marché
Swing high
A local peak: a bar whose high is higher than the N bars on each side.
- Structure de marché
Swing low
A local trough: a bar whose low is lower than the N bars on each side.