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Mapping Premium, Equilibrium, and Discount Zones Within a Price Range

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Summary

This educational MetaTrader indicator divides a selected price range into three visual areas: an upper Premium zone, a central Equilibrium level, and a lower Discount zone. It also marks the range high and low and can optionally show reference levels at one-quarter and three-quarters of the range. Traders can set the range boundaries manually or let the indicator derive them from the highest high and lowest low over a chosen lookback.

The zones are intended as chart context for manual analysis, rather than entry or exit signals. The document explains the range selection logic and the levels displayed, but provides no trading rules, tested results, or evidence that prices behave differently in each zone. How the range is selected can change the plotted areas, and the text does not specify a preferred lookback or explain how to handle changing ranges. The indicator is therefore a visualization aid, not a directional forecast or a complete strategy.

Key ideas

  • The indicator splits a chosen price range into Premium, Equilibrium, and Discount areas.
  • It identifies the range high and low and can display intermediate reference levels.
  • Range boundaries may be supplied manually or calculated from highs and lows over a lookback period.
  • The zones provide visual context and are not themselves trade signals or forecasts.

Tags

Technical indicators

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.