Premium, Discount and Equilibrium Zones from Confirmed Swing Structure
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Edo Premium Discount answers one question: inside the range price is moving in, is it trading expensive or cheap? It takes the current dealing range, defined by the most recent confirmed swing high and swing low, and splits it into three zones: premium, the upper half of the range, shaded red; discount, the lower half, shaded teal; and equilibrium, the central band around the 50% midpoint, shaded grey. A dashed line marks the exact 50% level, and a compact panel shows the current zone, the position of price in the range as a percentage, and the range high and low. Above 100% or below 0%, price has left the range: it is breaking out, not expensive or cheap, until the next confirmed swing redraws the range. The terms come from Smart Money Concepts; the indicator tells you where price sits, not which side to trade.
Edo Premium Discount allows full configuration of Swing Profile (Scalper, 5 bars each side; Swing, 10, the default, ideal for 4H and daily; or Long Term, 21, for weekly and wide horizons), Equilibrium Band (default 5.0% of range, half-width, so the band spans 45-55%), Extend Right (default 10 bars) and Zone Opacity (default 88), plus panel position (default Top Right) and panel size (default Small). Three alerts are available: price entered Premium, price entered Discount, and price entered Equilibrium.
Trading involves risk. This indicator is an analysis tool and does not constitute financial advice, investment recommendations, or trading signals. The user is solely responsible for their trading decisions.
