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, from 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
An entry can be structurally fine and still be badly placed: buying deep in premium or selling deep in discount. Checking premium and discount before every entry makes you ask where you are buying or selling, not only whether the pattern is there.
NQ example ILLUSTRATION
NQ's morning range is 15,200 to 15,320. A long signal at 15,305 sits deep in premium, 15 points from the range high. The same signal at 15,230 sits in discount, with 90 points to the range high.