In this THREAD I will explain “Premium vs Discount Zones”
1. BSL and SSL
2. Premium and Discount Zones
3. How to trade using Fibonacci
4. Fibonacci Retracement
5. Fibonacci Extension
🧵(1/8)
1. BSL and SSL
2. Premium and Discount Zones
3. How to trade using Fibonacci
4. Fibonacci Retracement
5. Fibonacci Extension
🧵(1/8)
1. BSL and SSL
Discount and Premium zones are based off Range Low to Range High.
To identify them, look where the recent Sellside Liquidity and Buyside Liquidity retests.
Discount and Premium zones are based off Range Low to Range High.
To identify them, look where the recent Sellside Liquidity and Buyside Liquidity retests.
2. Premium and Discount Zones
Using Fibonacci or Gann box, we can identify the UPPER and LOWER part of the range.
The Upper 50% is called "Premium"
The Lower 50% is called "Discount"
Using Fibonacci or Gann box, we can identify the UPPER and LOWER part of the range.
The Upper 50% is called "Premium"
The Lower 50% is called "Discount"
2.1 Bullish Price Action
If the Market Structure is BULLISH, we wanna BUY inside the Discount Zone.
Look for Confluences inside the Discount Zone:
- FVG and IFVG
- BPR
- OB
If the Market Structure is BULLISH, we wanna BUY inside the Discount Zone.
Look for Confluences inside the Discount Zone:
- FVG and IFVG
- BPR
- OB
2.2 Bearish Price Action
If the Market Structure is BEARISH, we wanna SELL inside the Premium Zone.
Look for Confluences inside the Premium Zone:
- FVG and iFVG
- BPR
- OB
If the Market Structure is BEARISH, we wanna SELL inside the Premium Zone.
Look for Confluences inside the Premium Zone:
- FVG and iFVG
- BPR
- OB
3. How to trade using Fibonacci
- Identify the high and low points: Find the significant high and low points.
- Identify the Fibonacci retracement levels: The levels are 23.6%, 38.2%, 50%, 61.8%, and 100%
- Look for potential support and resistance levels: Fibonacci levels
- Identify the high and low points: Find the significant high and low points.
- Identify the Fibonacci retracement levels: The levels are 23.6%, 38.2%, 50%, 61.8%, and 100%
- Look for potential support and resistance levels: Fibonacci levels
4. Fibonacci Retracement
Is used to identify horizontal lines, which indicate areas of support or resistance.
The most commonly used Fibonacci retracement levels are 38.2%, 50%, and 61.8%
If price retraces and reaches one of these levels, enter a LONG or SHORT position.
Is used to identify horizontal lines, which indicate areas of support or resistance.
The most commonly used Fibonacci retracement levels are 38.2%, 50%, and 61.8%
If price retraces and reaches one of these levels, enter a LONG or SHORT position.
5. Fibonacci Extension
Fibonacci extensions are used to establish profit targets or estimate how far a price may travel after a pullback is finished.
Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%
Fibonacci extensions are used to establish profit targets or estimate how far a price may travel after a pullback is finished.
Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%
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