Ask whether a price is cheap and the honest reply is another question: cheap compared to what? This article puts two answers side by side on a generic chart, with no ticker and no real prices. Edo VWAP Core measures price against value built by volume and time. Edo Premium Discount measures it against the range the swings have drawn. Neither is the correct one; they are measuring different things.
1. Fair value by volume
VWAP Core accumulates the typical price, hlc3, weighted by volume, and starts over at the beginning of each week and each month. The weekly VWAP is blue, the monthly orange, and each carries volume-weighted bands at one and two standard deviations. The reference, weekly by default, sorts every bar into five states: Premium Extreme above +2σ, Premium between +1σ and +2σ, Neutral VWAP inside ±1σ, Discount between −1σ and −2σ, and Discount Extreme below −2σ. The panel adds the σ Dist, how many deviations the close sits from the reference. Because of the reset, the weekly reading on the first bars of a week rests on very little data.
2. Fair value by range
Premium Discount ignores volume and the calendar. It takes the last confirmed swing high and swing low, ten bars on each side on the default Swing profile, and splits the range between them. Above the midpoint is PREMIUM, below it DISCOUNT, and a band around the 50% line is EQUILIBRIUM, 45 to 55% of the range by default. The panel shows the zone, the Position as a percentage of the range, and the Range High and Range Low that define it. The range only changes when a new swing is confirmed, so after a strong move through the top, Position can read above 100% until the next swing high is confirmed.
3. Why they disagree
The two anchors are built differently. The weekly VWAP starts over every week and follows where volume actually traded, so a steady climb inside the week drags it up behind price. The swing range can be much older and much wider, and it lags by construction, because a swing is only confirmed once ten bars have closed on each side of it. So a price that has reached Premium on the weekly VWAP can still sit in DISCOUNT or EQUILIBRIUM of a large range, and a price that has slipped to Discount on the VWAP can still be in the PREMIUM half of a range whose low is far below. Both readings are correct at the same time.
4. Reading the four combinations
When both say cheap, Discount or Discount Extreme on VWAP Core and DISCOUNT on Premium Discount, price is below what volume paid this week and in the lower half of its range: the two references line up. When both say expensive, the same holds on the other side. The mixed cases deserve more attention. Cheap on volume but in PREMIUM of the range describes a dip against this week's value while price still sits high in its range. Expensive on volume but in DISCOUNT of the range describes a fast week that started from low in the larger structure. Neither mixed case is a signal. It tells you which reference the trade depends on, and which one you are choosing to ignore.
5. What neither of them says
Both tools describe location, not direction. Premium is not a sell signal on either of them, and a price can stay expensive while it keeps rising; the VWAP Core guide is explicit that its states are context, not orders. What helps is deciding in advance which reference a trade leans on. A swing trade built around the range fits the premium and discount logic of the range; a trade that has to work this week fits the weekly VWAP. If a longer anchor suits the chart better, the monthly VWAP can drive the states instead, through the Use Weekly VWAP for State Classification input.
