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Premium & Discount
Where price sits within a range: above the midpoint is premium (favoring sells), below is discount (favoring buys).
What it is
Take any dealing range — a swing low to a swing high. The 50% level splits it: prices above equilibrium are 'premium', below are 'discount'. The concept forces you to ask whether you're buying expensive or selling cheap relative to the active range.
Why it matters
Most losing entries are structurally fine but positionally terrible — buying deep in premium or selling deep in discount. This one filter removes a whole class of bad trades.
NQ example REAL SCENARIO
NQ's morning range is 15,200–15,320. A long signal fires at 15,305 — deep premium. The same signal at 15,230 (discount) is the same pattern with three times the room to run.