Smart Money Concepts

Premium & discount

Cheap or expensive?

Take a swing range from its low to its high. The 50% line is equilibrium. Above it is premium (expensive), below it is discount (cheap). In an uptrend, smart money prefers buying in discount; in a downtrend, selling in premium.

Test yourself

In a bullish market, where do you ideally look for buys?

In discount, below 50% of the rangeBuying in discount gives a better price and room to the highs.

Current price is in the top half of the range. It is in…

PremiumAbove the 50% line is premium.

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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.