Within a dealing range, prices above the 50% midpoint are called "premium" and prices below it "discount". It is a relative location, not a valuation.
How traders use it: Some traders only look for longs in discount and shorts in premium of the current range, so they are not buying after most of a move has happened.
Common mistake: Believing discount means price must go up. Strong trends can stay in premium or discount for a long time.
Related: Equilibrium (50% level) · Dealing range · Confluence
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.