Learn Market Structure The Series: Premium and area discounts.
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Hallo Steemians How are you? I hope everything will be fine.
It's been a long time since I did an update on the study market structure edition because there are things that have really, really kept me busy for more than a week.
Instead of lingering, we will immediately discuss the latest material, a continuation of the previous material.
In this session, we will discuss premium and discount areas as an area for us to trade.
Knowing the premium and discount areas will, of course, really help us find a good entry point, especially when combined with some of the previous material for a high probability of entry.
In a trading area that is formed from a market structure, it turns out that there are premium and discount areas.
This area is used to look for entry opportunities. As the name suggests, the premium area is used for selling areas and the discount area for purchases.
Both of these functionalities can be used in the derivatives market or the spot market.
To find out and identify the premium area, we have to use the Fibonacci retracement.
By using Fibonacci, it will be easier for us to see a premium area in the market structure.
For the premium area, the use of Fibonacci is pulled from the 100 level from top to bottom.
meaning that we draw Fibonacci from the upper swing point to the lower swing point, as shown in the following figure.
This indicates that the supply level is at a premium level and is suitable as an entry point for a short market.
Looking for area discounts is the same as looking for demand in the market structure.
Usually, this is used by traders to look for levels when making purchases.
Looking for the discount area level by pulling Fibonacci tools is, of course, the opposite of looking for the premium area level.
The use of Fibonacci levels is withdrawn from level 100 by bringing the swing point to the top of the swing point.
You can see in the image below that there is a discount area that is at Fibonacci levels 78 to 88, which is right in the demand area.
This makes the area a discount area to make purchases.
Conclusion |
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knowing the premium and discount areas can provide additional confirmation to our analysis in seeing market structure movements.
Of course, the use of premium and discount areas will be very good if combined with supply and demand areas so that the probability is higher from our analysis.
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Aku pas nyoba pakai Fibonacci masih bingung. Kenapa garis yang keluar saat kupakai kelihatannya beda gitu ya. 🤦
Oalah, aku lupa kasih setingannya 😅
Sek tak kirim via tele
Pantesan beda 😱
Arigatogizaimasu 🙏
Thank you, friend!
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This is an interesting post but from my knowledge of Fibonacci tool, your tool for a containing so much noise.
Is that how it should be?
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Thank You.
this is because I use a lot of important levels on fibonnaci.
thanks for the feedback guys.