WickCheck / Trading school / Premium and discount
Premium and discountIntermediate
The upper half of a price range is premium (expensive), the lower half is discount (cheap).
Simplified illustration, not real market data.
What it means
Take a dealing range from a swing low to a swing high. Above the 50% level is premium, below is discount. The rule of thumb: buy in discount, sell in premium.
WickCheck can test this directly: 'buy in discount, sell in premium'.
How to spot it
- Draw a Fibonacci tool from the swing low to the swing high and look at the 50% line.
Common mistakes
- Choosing the range after the fact so every trade looks like it was in discount.
Related terms
EquilibriumThe 50% level of a dealing range, the line between premium and discount.…Optimal trade entryAn entry zone at the 62% to 79% retracement of a swing, with 70.5% as the common…Dealing rangeThe range between a clear swing high and swing low that price is currently tradi…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.