Smart Money Concepts

Premium and Discount Zones

Definition

Using the Fibonacci retracement (50% level or equilibrium) to divide a price range into premium (above 50%) and discount (below 50%) zones. Smart money buys in discount and sells in premium.

Example

After a bullish BOS, waiting for price to retrace into the discount zone below the 50% Fib level before entering long.

Explore More

Learn Trading with SignalPro

518 trading terms, 311 lessons, and AI-powered signals — all free to start.

Download Free