Automatic Premium and Discount Indicator in MT5 Download - Free - [TFlab]

The Automatic Premium and Discount Indicator, designed based on the ICT trading style, enables traders to identify Premium and Discount zones in major swings.

This indicator marks the "P" and "D" labels at Swing Highs and Swing Lows to define Premium and Discount areas.

Clicking on the "P" and "D" labels generates colored boxes on the price chart, visually displaying overbought and oversold zones. Through the settings panel, users can configure the indicator to analyze major and minor swings.

Indicator Specifications Table

The following table outlines the features and specifications of the Premium and Discount Indicator:

Buy Trade Setup

Analyzing the 5-minute Cardano (ADA) chart, clicking the "D" label generates Premium and Discount zones throughout the swing.

As shown in the image, the indicator marks the area from the start of the move up to 50% as the Premium zone, making a retracement into this region a strong Buy entry opportunity.

Sell Trade Setup

Based on the 15-minute AUD/USD chart, clicking the "P" label creates the Premium and Discount zones. The indicator identifies Swing Highs and Swing Lows and marks the first 50% of the move as the Premium area.

Retracing into the Premium zone in this scenario signals a favorable opportunity to enter Sell trades.

Indicator Settings

The following settings apply to the Premium and Discount Indicators:

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

Conclusion

The Automatic Premium and Discount Indicator identifies uptrends and downtrends by generating a zigzag pattern, marking Swing Highs and Lows, and automatically plotting Premium and Discount zones.

This MetaTrader 5 ICT Indicator considers the first 50% of a swing in the Premium area, offering traders clear buy-and-sell trade zones.

"P" and "D" labels are clickable, allowing users to directly generate overbought and oversold areas on the chart.