Splitting a price range at its 50% midpoint defines premium (the upper half, 'expensive') and discount (the lower half, 'cheap'). A common disciplined bias is to look for longs only in the discount zone and shorts only in the premium zone, improving the reward-to-risk of entries. The zones depend on which range you measure.
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FAQ
What is Premium and discount?
Splitting a price range at its 50% midpoint defines premium (the upper half, 'expensive') and discount (the lower half, 'cheap'). A common disciplined bias is to look for longs only in the discount zone and shorts only in the premium zone, improving the reward-to-risk of entries. The zones depend on which range you measure.