Premium Discount Zones Indicator
- Indicadores
- Versão: 1.0
Author: Ahmed Sobhy Aisha
Description:
The Premium & Discount Zones indicator is a Smart Money Concept (SMC) tool designed for forex, indices, and crypto traders. It identifies premium (expensive) and discount (cheap) areas on the chart based on a manually drawn trendline, helping traders find high-probability supply and demand zones.
How It Works:
Simply draw a trendline on your chart and name it "00". The indicator automatically reads the trendline's two anchor points and divides the price range into two equal halves:
- Premium Zone (top half) — The upper 50% of the range where price is considered "expensive." This is the ideal area for finding sell entries or taking profit on short positions.
- Discount Zone (bottom half) — The lower 50% of the range where price is considered "cheap." This is the ideal area for finding buy entries or taking profit on long positions.
- Equilibrium Line (50%) — The exact midpoint separating premium from discount. Price crossing this line signals a shift in market structure.
Key Features:
- Customizable Trendline — Set any trendline name via the input settings (default: "00")
- Adjustable Box Extension — Control how far the zones extend to the right using the ExtendFactor multiplier
- Fibonacci Levels Overlay — Display key Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, 76.4%) inside the zones. Choose between specific levels (38.2, 50, 61.8) or all standard levels.
- Fully Customizable Colors — Set your own colors for premium zones, discount zones, equilibrium line, and Fibonacci levels
- Clean Chart Display — All objects are hidden from the object list and placed in the background for a clutter-free chart
- Works on All Timeframes — M1 to Monthly, any instrument
How to Use:
- Attach the indicator to your chart
- Draw a trendline using the MT4 trendline tool
- Right-click the trendline → Properties → Name it "00"
- The indicator will automatically display the premium and discount zones
- Adjust the Extend Factor to control how far the zones extend
- Enable Fibonacci levels to identify precise entry points within each zone
- Look for price reactions at the zone boundaries and the equilibrium line
