Premium vs Discount Zones

Learn Premium vs Discount Zones — part of our Smart Money Concepts series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

Fibonacci-style range mapping

Inside a defined swing range, SMC divides price into:

  • Discount (lower half) — relatively cheaper; long-bias traders look here.
  • Equilibrium (50%) — midpoint.
  • Premium (upper half) — relatively expensive; short-bias traders look here.
PremiumDiscount 50%

This pairs with position sizing — zone quality does not remove risk.

Further reading on Trading Bite