Split a dealing range at its 50% level: above is premium (favor sells), below is discount (favor buys). It keeps entries on the better side of value.
How to identify it
- Define a clear swing high and swing low
- Mark the 50% equilibrium
- Look for longs in discount and shorts in premium
Entry
Buy reactions in discount during bullish structure (or sell premium in bearish structure).
Stop loss
Beyond the range extreme.
Target
The opposite side of the range.
Invalidation
Structure breaks against the bias while in the zone.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your premium / discount trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.