Automatic Premium and Discount Indicator in MT4 Download - Free - [TFlab]

The Automatic Premium and Discount Indicator is one of the ICT indicators in MetaTrader 4 that displays Premium and Discount zones in the simplest way possible.

This indicator considers Swing Highs and Swing Lows to draw Premium and Discount zones on the trend. 

The "P" label on the highs represents Premium, and the "D" label below the lows represents Discount. By clicking these labels, Premium and Discount zones with pink and blue colors and the 50% line are displayed.

Indicator Specifications Table

The following table reviews the specifications and features of the Automatic Premium and Discount Indicator.

Premium and Discount Indicator Overview

The indicator creates a box that includes two distinct zones the Premium Zone (pink area) and the Discount Zone (blue area). In an uptrend, the Premium Zone forms from the trend’s starting point up to 50%, providing a strategic area for buy trades, while in a downtrend, the zones function in the same way but in reverse.

Buy Trade Setup

Based on the GBP/USD 30-minute chart analysis, clicking on the "D" label at the low of an upward leg will create Premium and Discount zones.

The indicator considers the starting point of the swing up to 50% as the "Premium" area. The pink zone is an ideal entry point for buy trades if the trend retraces.

Sell Trade Setup

According to the 30-minute Binance Coin (BNB) chart, Premium and Discount zones are determined based on Swing Highs and Swing Lows.

If the price returns to the pink zone (Premium area), this retracement can be considered an opportunity for entering sell trades.

Settings of the Automatic Premium and Discount Indicator

The following settings apply to the "Automatic Premium and Discount" indicator:

• Small Swing: Enables minor swing analysis
• Big Swing: Enables major swing analysis
• Opposite Color: Defines the color of the zigzag line

Conclusion

The Automatic Premium and Discount Indicator displays uptrends and downtrends by creating a zigzag line. This indicator analyzes swings and provides a visual representation of Premium and Discount zones by placing "P" and "D" labels.

This MetaTrader 4 liquidity indicator considers the starting point of a trend up to 50% as the Premium zone, offering traders opportunities for buy and sell positions.