Most traders learn to chase direction; the pros learn to buy “cheap,” sell “expensive,” and let the wider trend do the heavy lifting.
That simple idea sits at the core of the Discount & Premium strategy inside today’s Smart-Money-Concepts (SMC) playbook.
1. What are Premium and Discount zones?
Premium zone: The top 50 % of a swing. Price is considered “expensive,” so it’s a great place to stalk shorts in a bearish bias.
Discount zone: The bottom 50 % of a swing. Price is “cheap,” making it a prime hunting ground for longs in a bullish bias.
Smart money refines those halves with Fibonacci ratios like 0.618 and 0.786, levels where big players historically build positions.
2. Why I stopped drawing Fibs by hand
I used to drag Fib tools across every impulse leg, and two problems kept popping up:
I’d mis-click the swing or forget to update the range.
My chart turned into spaghetti during fast markets.
Fibonacci Mystery fixes both. Drop it on the chart, and it:
Auto-detects meaningful swing highs/lows.
Paints clear 0.50, 0.618, 0.786, and 0.886 bands, no guessing.
Self-updates when a new impulse appears, so zones stay relevant.
Result: I spend more time planning trades and less time measuring swings. 😅
3. Indicators that pair nicely with Discount/Premium logic
| Objective | NT8 Indicator | How it helps |
|---|
| Draw accurate Premium/Discount bands | Fibonacci Mystery | Automatic swings, dynamic Fib zones, zero chart clutter |
| Predict future support and resistance zones | Sky Fibomoku | See Fibonacci retracement levels plotted before the price even forms |
The Discount & Premium concept is nothing new—institutions have anchored around “fair value” for decades. The edge comes from seeing those zones instantly and acting only when price is truly cheap or expensive relative to the last impulse.
With Fibonacci Mystery doing the drawing (and a couple of confirmation tools doing the filtering), you can focus on execution, not measurement.
Ready to try it?
Reply to this post or contact me here: https://flora.renkokings.com/
