ICT FOR DUMMIES | Premium and Discount EP. 8

ICT for Dummies episode 8 explains premium and discount ranges using Fibonacci retracement, showing how buying in discount and selling in premium improves risk-to-reward.

Key Takeaways

Use the Fibonacci retracement between swing high and low to define premium (above 0.5) and discount (below 0.5) zones.
Short from premium and long from discount to optimize risk-to-reward.
Wait for price to rebalance toward equilibrium before entering trades in an impulsive move.
Combine premium/discount analysis with other concepts like liquidity and fair value gaps for confirmation.

What the video covers

The video introduces premium and discount as a framework for entering trades at favorable prices, analogous to buying goods on sale.
The Fibonacci retracement tool is used to mark the range between a swing high and swing low, with the 0.5 level defined as equilibrium.
Price above equilibrium is considered premium and below it discount; shorts are preferred from premium and longs from discount.
Price is described as always either seeking liquidity or rebalancing ranges, and strong impulsive moves often require a rebalance before continuation.
A risk-to-reward tool illustrates that entries at equilibrium yield roughly 1:1 risk-to-reward, improving the deeper price moves into premium or discount.
Shorting before price reaches equilibrium produces negative risk-to-reward and should be avoided.
Multiple dealing ranges and time frames (e.g., AM session, 15-minute range) can be layered to refine bias and entry points.
Premium and discount concepts should be combined with other ICT concepts such as fair value gaps and liquidity rather than used in isolation.
The presenter notes that stronger reactions occur when price rebalances ranges and taps into significant period opens.
The video closes by promoting mentorship applications through the creator's Instagram link.

Chapters

What does the 0.5 Fibonacci level represent in this video?

The 0.5 level is called equilibrium. It divides the range into premium above it and discount below it, and the presenter uses it as the reference point for when shorts or longs become optimal.

Why should a trader avoid shorting before price reaches equilibrium?

The presenter explains that shorting before equilibrium results in negative risk-to-reward, because the entry is not yet in the premium area where the stop-loss distance relative to the target is favorable.

How do premium and discount relate to other ICT concepts in the video?

The video says premium and discount should be paired with other concepts such as liquidity, fair value gaps, and dealing ranges rather than used alone, since they optimize entries and provide confirmation alongside those tools.

Full Transcript — Download SRT & Markdown

Speaker A

Welcome to ICT for Dummies, episode 8. Premium and discount. Premium and discount. Buy low and sell high. Yeah. Keep shorting there at the premium. I'm keeping at the discount, because this is buying low, selling high. It will get you right liquidity and rebalance ranges. That's how you trade this with the premium and discount. You will maybe, probably get laid.

Speaker A

I'm keeping at the discount cuz this is buying low sell she will get you rights liquidity and rebalance ranges.

Speaker A

What? That's a crazy last one. Hey, it's true, bro.

Speaker A

What? That's a crazy last one. Hey, it's true, bro. All right, everyone. So, today for this video, we're going to be going over premium and discount. We're going be going over what these ranges actually mean. I'm sure you've heard the

Speaker A

All right, everyone. So, today for this video, we're going to be going over premium and discount. We're going to be going over what these ranges actually mean. I'm sure you've heard the term used a lot, inside of a premium range or inside of a discount range. So, we'll get into how you can actually use them. It might be a little bit confusing because there's going to be a lot of different ranges, but we're going to get into some examples and, again, show you how to actually use them. The first step is whipping out your Fib retracement tool. This is going to be your best friend when it comes to marking out premium and discount. Blake, show them what that looks like.

Speaker A

into some examples and again show you how to actually use them. The first step is whipping out your fib retracement tool. This is going to be your best friend when it comes to marking out premium and discount. Blake, show them

Speaker A

Oh, they actually did bring my nut sack ointment. My nut sack ointment is here. Be right back.

Speaker A

premium discount and just give you an analogy for like real life. For example, when you're at the store and you want to buy something, right, you want to buy it in at a discount for example, right, for PB Premium, you want to be getting in on

Speaker A

So, first things first, guys, I just want to explain to you why this is actually important: premium and discount. I'll give you an analogy from real life. For example, when you're at the store and you want to buy something, you want to buy it at a discount, for example. For a premium, you want to be getting in on those sales. When we have 25% off for National Women's Day, for celebrating, you know, Patrick, we want to be getting in during times like that.

Speaker A

You do not want to be getting in at a premium when prices are, you know, inflated or, you know, when prices are raised. No, no, no. Don't don't join the Discord at a discount. That's when we get all you damn brain rodders who who

Speaker A

You do not want to be getting in at a premium when prices are inflated, or when prices have been raised. No, no, no. Don't join the Discord at a discount. That's when we get all you damn brain rodents who just don't even care to learn. All you care about is some sort of, like, signal. Some of you just join the Discord and you signal, and you don't even really care about my feelings. I'm there to teach you, bro. Real talk, I just want to change your life, and all you care about is, "Yo, VB, when's the next discount?" Not everything's about a discount. They always ask when the next signal is coming out. They never ask how the signaler is doing.

Speaker A

I'm there to teach you, bro. Like real [ __ ] I just I just want to like change your life and stuff and like all you care about is like, "Yo, VB, like when's like the next discount?" Like not not

Speaker A

I mean, again, guys, for example, if you're in the store, you want to be buying eggs when they're on discount, not when it's premium, not when the prices are inflated. That's essentially the whole reasoning behind premium and discount. You want to be getting in on the market at a good price. So with this lesson, we're really going to show you how to utilize the Fibonacci tool as effectively as possible. What this is going to do is optimize your entries. If you're longing from a premium or you're shorting from a discount, it's not going to be as optimal as if you're longing from the discount or shorting from the premium.

Speaker A

buying eggs when they're on a discount, not when it's premium, not when the prices are inflated. That's essentially the whole reasoning behind premium and discount, right? You want to be getting in on the market at a good price. So

Speaker A

So, let's show you guys where premium and discount actually lie. For example, in this trading leg, we have a very obvious impulsive swing high and a swing low. Let's say in this scenario that we are bearish, and we're going to draw our Fib tool from the swing high all the way down toward this swing low. Really quick, if you want to look at the Fib retracement, I just have 0.5 here and one. Now, if I want to be shorting, I want to see price trade into equilibrium of this range. This is called equilibrium. The 0.5 is called equilibrium in this bearish scenario.

Speaker A

discount, it's not going to be as optimal as if you're longing from the discount or shorting from the premium.

Speaker A

Anything here is considered discount. Anything here is considered premium. So if we're shorting, we want to be in premium. Now, like we've said before, and we say this all the time, price is always doing one of two things. What is that? It is either seeking liquidity or rebalancing ranges. So, like Blake mentioned, when you have these super impulsive moves, for example, this very strong bearish order flow that leaves little to no retracement, if you want to short, you at least want to see a rebalance of this range before you take shorts lower. You want to be shorting from the premium of this range. You want to be shorting once equilibrium has been hit and that range has been rebalanced. The main point of premium and discount, guys, all comes down to risk-to-reward.

Speaker A

going to be drawing out our fib tool from the swing high all the way down here towards this swing low. Now, really quick, if you guys want to just look at the fib retracement, I just have 0.5 here and one. Now if I want to be

Speaker A

So if I bring out my risk-to-reward tool, you can see here that at exactly equilibrium, this will give me a 1:1 risk-to-reward from the buy-side liquidity to the sell-side liquidity. As we get deeper into the premium of this range, the better my risk-to-reward will be. As you see, as we keep going deeper into this range, the better my risk-to-reward becomes. This is going to be really helpful for you to actually get better risk-to-reward on your trades, because you do not want to be shorting, for example, here, when price hasn't even reached equilibrium of this range, because your risk-to-reward will be negative, and that is not good.

Speaker A

Anything here is considered discount. Anything here is considered premium. Right? So if we're shorting, we want to be in premium. Now, like we've said before, and we say this all the time, price is always doing one of two things.

Speaker A

Now we can mark out this bullish leg, bottom to top, and as you can see, we now have the premium and the discount marked out. So if we want to take longs, ideally this is not the area we want to be longing in. Why? Because we are very premium right now. You would want to see price rebalance this range, which means at least trading up until equilibrium, and now this imbalance has been corrected, and longs are going to be far more optimal, and you're going to get better risk-to-reward, because we are discounted now. So obviously, if you're longing near equilibrium, you're going to get at least a 1:1 back to this high. Like Blake said, the deeper you go into this range, into the discount for longs, the better your risk-to-reward is going to be. I will say it a million times: all these concepts and everything we teach you, you don't just use them individually. You pair them with everything else we've taught you.

Speaker A

at least want to see a rebalance of this range before you take shorts lower. You want to be shorting from the premium of this range. You want to be shorting once equilibrium has been hit and that range has been rebalanced. And the main point

Speaker A

But this is very important to know, because it's going to optimize your entries. It's going to optimize your RR. It's going to help you avoid getting stop-hunted, and it's going to allow you to achieve more consistent trading results.

Speaker A

liquidity. And as we get deeper into the premium of this range, the better my risk-to-reward will be. And as you see, as we keep going deeper into this range, the better my risk-to-reward becomes. So this is going to be really helpful for

Speaker A

So let's pair this with something like fair value gaps. If we want to be longing a fair value gap of this bullish leg, ideally we wouldn't want to long the one that's premium all the way up here, because we're obviously not going to get good risk-to-reward. And chances are that price won't reject this premium bullish fair value gap like it will reject this discounted bullish fair value gap. Why is that? Because if you're going to be longing this fair value gap up here, this range has yet to be rebalanced. Ideally, you'd want to wait for the range to get rebalanced. If you're going to enter off a fair value gap, you'd want it to be the discounted one if you're going to enter long. This is going to have a way higher probability of actually being respected and then trading to the desired levels.

Speaker A

can mark out this bullish leg bottom to top and as you can see here we now have the premium and the discount marked out.

Speaker A

Again, guys, this might get a little bit confusing, because there are going to be ranges inside of ranges. For example, here we have the dealing range we just had, but once this swing gets made, we're going to have another dealing range right here. So we're going to get into some examples on how to actually draw out your ranges correctly so you don't just get lost, because this is a very confusing ICT concept that I feel like a lot of people get mixed up on: where do I draw my ranges? We're going to go into some examples right now to hopefully clear things up.

Speaker A

now this imbalance has been corrected and now longs are going to be far more optimal and you're going to get better risk-reward because we are discounted now so obviously if you're longing near equilibrium you're going to get at least

Speaker A

So again, guys, with this concept, you want to be utilizing it with other confluences. As we talked about in our liquidity video, we had a sweep here of this liquidity right here. Nice little sell-side

Speaker A

million times all these concepts and everything we teach you, you don't just use them individually. You pair them with everything else we've taught you.

Speaker A

But this is very important to know because this is going to optimize your entries. It's going to optimize your RR.

Speaker A

It's going to help you avoid getting stop rated and it's going to allow you to achieve more consistent trading results. So, let's pair this with something like fair value gaps, right?

Speaker A

If we want to be longing a fair value gap of this bullish leg, ideally we wouldn't want to long the one that's premium all the way here because we're obviously not going to get good riskreward. And chances are that price

Speaker A

won't reject this premium bullish for value gap like it will reject this discounted bullish or value gap. Why is that? Because if you're going to be longing this fair value gap up here, this range has still yet to be

Speaker A

rebalanced. Ideally, you'd want to wait for the range to get rebalanced. If you're going to enter off a fair value gap, you'd want it to be the discounted one if you're going to enter long. This is going to have a way higher

Speaker A

probability of actually being respected and then trading to the desired levels. Now again guys, this might get a little bit confusing because obviously there's going to be ranges inside of ranges. For example, here we have this dealing range

Speaker A

that we just had, but then also once this swing gets made, we're going to be having another dealing range right here.

Speaker A

So, we're going to get into some examples on how to actually draw out your ranges correctly so you don't just get lost because this is a very confusing ICT concept that I feel like a lot of people get mixed up with like

Speaker A

where do I draw our ranges? But we're going to go into some examples right now to hopefully clear things up. So, again guys, with this concept, you want to be utilizing it with other confluences, right? So, as we talked about in our

Speaker A

liquidity video, right, we had a sweep here of this liquidity right here. Nice little sellside sweep. What do we notice? We got above guys some nice buyside liquidity. We have buy side liquidity resting here and we also have

Speaker A

that low resistance liquidity as a liquidity pool. So obviously once we've identified that we have that sellside sweep on the higher time frame and we swept that 15-minute low. Now we have this impulse leg on the one minute time

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frame, right? We clearly have very strong bullish reaction here after that sellside sweep. And now we can mark out this range top to bottom. Right? So here we have equilibrium resting which is going to be the 0.5. So, ideally, I'd

Speaker A

want to be longing from a retracement into at least equilibrium. But something I do want to say is that we don't necessarily need to be in the trade at discount. As long as we know that this range has been rebalanced, we should be

Speaker A

okay to be longing. So, if you're feeling confident enough with price where you're telling yourself, okay, this range has been rebalanced. I have all the bullish confluence I need to be longing and we're in this discount. This range has gotten rebalanced as well. You

Speaker A

know, this is looking good for longs. I'll enter off here. But sometimes you might want to wait for a little bit of structure. So, you'll probably wait for a reaction off of equilibrium and maybe once you get that reaction, you're like,

Speaker A

"Okay, I'll take longs from here, stop loss at this swing low, and then I'll target all this." Right? So, what I'm trying to get at here is you don't necessarily need to be in the trade at discount, but you do want to see that

Speaker A

range get rebalanced before you enter long. But before price truly enters bullish order flow, you're going to notice that it's going to want to rebalance this range, which you can see right here. It taps into equilibrium. It hits this discounted fair value gap. And

Speaker A

then what happens after we get that delivery higher, right? And we go ahead and run all these levels that we have marked out. So this is why understanding how to use this fib retracement tool is really important because if you are able

Speaker A

to mark out premiums and discounts of legs, then you're going to optimize your entry. But before we even go about executing on the lower time frame, we also still want to be analyzing if these ranges are being rebalanced on the

Speaker A

higher time frame. So right now we're on the five-minute chart. We were previously on the one minute chart. If we mark out this leg right here on the five-minute chart, you can clearly see that price goes ahead, trades higher

Speaker A

really impulsively, and then before it continues higher and breaks this high once again, what do we get? We get that rebalance to equilibrium. Why is this important? Because the same things that you want to see on the lower time frame,

Speaker A

you want to see on the higher time frame. Same things you want to see on the higher time frame, you want to see on the lower time frame. It's all fractal. You want to be able to apply it

Speaker A

across all time frames. So, if you're seeing a range get rebalanced in the higher time frame, what's it going to help you do? It's going to help you determine your bias. It's going to help you go about your next draw on

Speaker A

liquidity. And you can see this is literally constantly happening. We get this strong move up, price rebalances, hits equilibrium, goes up higher. What do we get here? Price moves up, rebounds this range, goes up higher. Do you get

Speaker A

what I'm trying to say? Now, there's always going to be a stronger reaction when price is rebalancing these ranges and tapping into these significant period rays. So, hopefully you guys see what I'm trying to get at here, right?

Speaker A

Price usually needs to rebalance these ranges before it can continue in the direction that it wants to. So now that we know that the higher time frame leg is rebalanced, we don't really have to worry about price trading lower here. We

Speaker A

just want to pair these exact same confluences on the lower time frame so we can execute properly. So we know the higher time frame got rebalanced, right?

Speaker A

We trade into equilibrium. And then we also get that trade back into equilibrium here. And everything is aligning. We're clearly seeing that every time we have a leg up, price goes back, rebalances that range, and then gets a reaction. And we know from here

Speaker A

we are ready for longs, baby. Yeah. And with this guys also is that ranges are always expanding, right? So every time we take out a new swing, your range is constantly expanding. So for example, here we have this swing low and then

Speaker A

this major swing high point. And what you should be looking for underneath equilibrium of this range is liquidity pools or fair value gaps. And in this scenario here, we have both. We have this liquidity pool being the sellside

Speaker A

liquidity and then we have this bullish fair value gap. And that's how we were able to come to that conclusion of that bullish bias on the higher time frame because we expanded this range and we saw that price traded below equilibrium

Speaker A

of this range and then we got our lower time frame entry. Now we're going to get into a bearish example of premium discount. Good one. All right guys, so right here we have a very strong impulsive down move and this was

Speaker A

probably from news, right? So we can mark out the swing high. This is our swing high and then this is our swing low. And this does go lower and as I was saying ranges are always expanding. So you just draw it out a little bit lower.

Speaker A

For now, now that that swing low is put in place, we want to see price trade into premium of this range before entering into any sort of shorts, right?

Speaker A

We want to see price get rebalanced and then we want to see that lower time frame confirmation get out of this to then enter a short. So, I'm going to go down now to the fiveminute. So, as you

Speaker A

guys can see here, we have this bearish fiveminute for value gap sitting at equilibrium of this range, right? So, I want to see this get traded to before entering into a short. You do not want to be shorting, you know, when we're

Speaker A

down here before hitting equilibrium, right? because there's still room for price to move. We still need price to trade into equilibrium. Orders are getting filled here, right? Nobody in the market is entering at this low into discount, right? So once price trades

Speaker A

into this 5minute fer gap, I'm then going to look for that lower time frame structure to get confirmation that we're going to go lower towards this sellside liquidity down here. And from here, price ends up trading back down towards

Speaker A

this sellside liquidity as you can see. And I want you guys to note also to not be marking out every single range that you guys see, right? For example, here in this scenario, if I'm going to be bearish, right, and I'm looking for

Speaker A

shorts down towards this sellside liquidity, I'm not going to be marking out, you know, impulse legs from here to here, right? Because that's not what I'm looking to see price get traded into.

Speaker A

I'm not looking for longs, right? I'm looking for shorts. So, all I'm caring about is this impulse leg here. And then if I'm going to be dropping down to the lower time frame, right, I'm going to be looking for those impulse legs on the

Speaker A

lower time frame. So, we're going to get into a couple more examples now, guys, just to instill this into your brain. So here we've identified another super strong impulsive leg down right we have this very very blatantly voluous juicy

Speaker A

ginormous freaking hey yo okay we know that now since there's a huge imbalance in price it most likely needs to be corrected if it is going to sell off again right but like we said before ranges can be confusing and just because

Speaker A

we hit equilibrium of this doesn't mean that order flow has to flip completely bearish we can always continue to analyze the ranges as we go to see where price truly wants to go so if If we play this out, we see that price trades up

Speaker A

until equilibrium. And naturally, we do get a reaction. But instead of expanding lower, we can see that price actually ends up respecting this newly formed range and continues higher. And notice what price keeps doing, right? If we continue focusing on these new ranges

Speaker A

and these new impulse legs being created, which are now towards the upside and we keep marking them out, what do we realize? Well, we notice that price will continue rebalancing these and then expanding higher. So, we do have a flip in order flow here. This

Speaker A

range itself is getting ran through but at first we did get a reaction from the equilibrium. However, with these new ranges being formed, we are now getting reactions to the upside and these bullish ranges are getting rebalanced and continuing to expand higher. And

Speaker A

this happens nearly all the time, right? Sometimes it's not perfect, but for the most part, you are getting these rebalances pretty frequently before price continues to expand higher. So yeah, guys, I know this might seem like a little bit confusing now, but guys,

Speaker A

trust me, once you start adding this with all of your other confluence like we've taught you, like liquidity sweeps, like for value gaps, right? We're going to get into daily bias and all of that later on, but you guys will slowly start

Speaker A

piecing together all these concepts that we teach you and it will make a lot more sense later on. So if we use something like the fib tool and premiums and discounts and just a simple understanding that ranges naturally need

Speaker A

to get rebalanced almost all the time to continue in the corresponding direction then you can use that to help you determine something like your bias.

Speaker A

Right? So let's say we mark out this leg top to bottom. We have this really strong leg, this impulsive bearish leg and we're trading AM session. Then we're most likely thinking that for AM session we'd want to see price rebalance this

Speaker A

range. So maybe during AM session we're going to be looking for longs. we're gonna have a bullish bias because we know there's a huge imbalance in this leg and it most likely needs to be corrected. You can mark something out

Speaker A

like this hourly bearish for a value gap. You can anticipate, okay, going into this morning, I probably want to see if I can catch some longs, maybe trade up into this hourly bearish for value gap that's sitting at the premium

Speaker A

of the range. And so, obviously, you can see during AM session, that's exactly what you get. Price goes ahead, rebalances this range. And now if you're trading PM session, you can use that higher time frame analysis with premiums

Speaker A

and discounts to also determine your next bias and your next draw liquidity. So now you know, okay, we're sitting inside this hourly bearish for value gap. It's PM session now. This range has already been rebalanced. Do I really

Speaker A

want to keep looking for longs? Most likely not. And you can see that PM session goes ahead and has a strong reaction down because we rebalance this range. So this is like very vaguely just showing you how you can use this to help

Speaker A

determine your bias. simply analyzing where these imbalances in price are lying, whether we are trading in the premium or discount. And this will help you get a more accurate narrative of price in general. So, we can almost piece this in like three parts, right?

Speaker A

You have like your higher time frame leg. We have this really strong bullish leg. If we're going to be bullish going into the morning and we want to make sure this range is rebalanced. Awesome.

Speaker A

We know that we have this higher time frame leg being rebalanced. Let's consider the green zone to be like the hourly time frame, maybe the 1 hour, the 4 hour. we know that this higher time frame like has gotten rebalanced and we

Speaker A

know that we're getting a reaction from it. So then if we're like looking at relatively lower time frames like the 15minut let's make this like orange then this is most likely the current trading range that we're in of the session and

Speaker A

we'd also want to see this get rebalanced and this get respected if we want to have more confirmation for a bullish bias. So we sort of start off on the higher time frame and we drop down and continue receiving that confirmation

Speaker A

from price action. We know that this higher time frame hourly leg has gotten rebalanced and respected. We get a reaction. Now, if we're looking at like a 15 minute chart, we know that this range has also gotten rebalanced and

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respected. And now, if we go down all the way to like where we're executing, which is mainly going to be on the one to five minute time frame with the way Blake and I trade, we'll mark this out

Speaker A

as yellow. Then, we can get our final confirmation to see if these lower lower time frame ranges are also getting rebalanced. You know, we're probably looking for an entry now. So, we'll have like a bullish for value gap sitting

Speaker A

right here and we want to see, you know, maybe this range get rebalanced, trade into a bullish or value gap, respect that and from there we're locked in for longs and we can anticipate that price will run higher. So, I know this looks

Speaker A

pretty sloppy and it's like all jumbled up together, but you get what I'm trying to say, right? You always want to keep dropping down into the time frames, making sure that everything is truly being respected and building up that

Speaker A

confirmation. And the more confirmation you can build across each time frame, the higher probability that your trade is going to play out. Okay, guys. So, going off what Patrick just said, I'm going to be pairing everything together in an example right here on the chart.

Speaker A

So, on the higher time frame, I'm bullish. So, I'm going to be marking out this swing low here to this swing high, right? And underneath that, what do we see? We have a bullish fair value gap here on the hourly time frame. So for me

Speaker A

to be taking longs, what I want to see price do is for price to trade back into this bullish for valley gap, get some reaction out of that, maybe form that lower time frame confirmation, and then we can get some longs out of there to

Speaker A

target this buy side liquidity. So now I'm going to drop down into the 15-minut time frame and I'm going to wait for this fair value gap to get traded into.

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So once this fair value gap gets traded into and we respect it, I'm now on the 15-minut time frame. I'm going to wait for that structure to then validate this bias. I'm going to go down now to this

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5minute time frame to see if we can actually get an entry and if we can get some reaction off of this level. So now I'm going to whip out this fib. I'm going to go from the swing low to the

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swing high and I'm going to wait for price to trade into equilibrium into this fair value gap to then get a trade idea off this. Keep expanding this range here. Keep expanding this. Now that the swing high is put into place. I'm

Speaker A

looking to see price trade below equilibrium of this range. And what do we see here? Well, we have sellside liquidity resting right here as well as we have this bullish fal gap right here in discount. So I want to see price then

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trade lower into this fali gap sweeping out the sellside liquidity and then getting a long towards this buy side liquidity above us. So then price ends up sweeping out this low trading into this bullish for rally gap. We get a

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reaction off this and here I can enter longs with a stop loss at this swing TP at this high for example and maybe you can even leave runners for that buy side liquidity on the hourly time frame and

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then we can play out price here and it ends up smacking all of these take profits. So you want to be marking out your Fibonacci guys for everything on the daily time frame, on the hourly, right? To really get a sense of where

Speaker A

your bias is. And then for your actual entry point, it's going to be really, really helpful in getting that risk-to-reward, right? Because the Fibonacci and equilibrium and premium and discount, it's useful for those two reasons. One is for actual imbalances in

Speaker A

price, right? The market likes to trade towards discount because that's where a lot of buyers are stepping in. and price likes to trade towards premium because that's where a lot of sellers are stepping in right so a lot of orders are

Speaker A

getting filled at those areas and then for us for traders right we want to be using that as an actual entry point for risk-to-reward reasons so understanding the two reasons of why the fib tool and why premium discount is so helpful is

Speaker A

going to help you guys a lot in just your overall trading yeah guys I mean that pretty much wraps up premium and discount I mean like you can really apply this to nearly everything in life so the way you should think about it is

Speaker A

like if you pull up to a party and When you see a girl that you really like, it's almost like longing at a discount.

Speaker A

You want to start, you know, chopping it up with her, sort of getting in nice before that range gets rebalanced, before other people start talking, and it's going to allow you to get that optimal entry. Because if you wait like

Speaker A

too late into the night, then chances are that range has already been rebalanced. Someone already talked to her, someone already got the reps in, and you just missed out on the greatest long opportunity of your life. If you're

Speaker A

not taking advice from us, you're probably never gonna be rich. No, I'm kidding. But seriously, thank you guys so much for watching ICT for Dummies episode 8, premium and discount using Fibonacci. Homework. Homework, guys, is going to be mark out your premium and

Speaker A

discount ranges. Just go into the chart, look at the swing highs, look at the swing lows, mark out your buy side liquidity, mark out that sellside liquidity, and you know, just be marking out your overall ranges, seeing where

Speaker A

price is going to trade towards. Uh, last thing I do want to say, if you are looking for some mentoring from us, we do have applications open for our mentorship right now. Uh, you can apply through like our Instagram bio link.

Speaker A

We'll probably toss it in. We'll toss it in the YouTube description. It is in the YouTube description. When you join our mentorship, if you are more on like the beginner side, we do give you like a whole 20 course video before we get into

Speaker A

the live calls. And those videos will essentially explain every single concept that you need. And then we'll get more into like model breakdown, bias, draw liquidity when the mentorship starts.

Speaker A

And there's a lot of really fun, interactive, and just great community overall in this mentorship. So, if that's something you're interested in, apply. If that's not something you're interested in, keep watching this YouTube series. We're going to keep

Speaker A

releasing banger videos. We're going to explain really everything for free and give you all the sauce you need. But for those of you who do want, I guess, a little bit extra mentoring, some accountability, just overall cool community to learn with, then um link in

Speaker A

description. Check that out. Make sure to subscribe, like, comment, tell me what concept you're looking forward to learning most. Drop that comment below.

Speaker A

Much love, fellas. Peace out, boys.

Topics:ICTpremium and discountFibonacci retracementequilibriumrisk-to-rewardliquidityrange rebalancingsmart money conceptstrading educationforex

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