Premium vs Discount: ICT for Futures Explained
TL;DR
Premium vs Discount — Equilibrium & the OTE. Take the dealing range from swing low to swing high.
“Premium vs Discount — Equilibrium & the OTE. Take the dealing range from swing low to swing high.”Click to post on X ▸
Where this fits in the Confluence Method
This lesson lives in the Stack step of the Confluence Method, where you confirm price action and structure, a key level and a trigger before a setup qualifies as a trade.
Read the full method ▸Full transcript
2 sections0:00Welcome back. Premium versus discount — never pay retail for your entries. Take the dealing range from swing low to swing high. The midpoint is equilibrium, the fifty percent level. Above it is premium, where you look to sell; below it is discount, where you look to buy. The optimal trade entry, the OTE, sits deep in discount around the sixty-two to seventy-nine percent retracement.
0:31Buy the discount, sell the premium, and let the OTE time your entry. Next: displacement.
