Core Concepts
ICT Premium and Discount: Dealing Range Explained
Premium and discount are terms used in ICT education to describe where price sits within a defined dealing range. The framework can organize directional ideas and preferred entry areas.
Define the dealing range
A dealing range needs an objective high and low. Its midpoint or equilibrium divides the range into upper and lower halves.
Premium and discount
The upper portion is commonly called premium and the lower portion discount. Some ICT traders use the distinction to prefer short ideas in premium and long ideas in discount when other conditions align.
Equilibrium is not a signal
The midpoint is a reference level, not proof that price will reverse there. A strong trend can continue through equilibrium.
Test the full rule
Specify range selection, directional filter, entry condition, stop and target. Compare results with and without the premium/discount filter.
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