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3.1 - Premium & Discount Zones Definition
Premium Zone : It is the region above the 30% level of a certain swing move .Discount Zone : It is the region below the 30% level of a certain swing move .
3.2 - Determining Premium & Discount Zones
You can determine the Premium & Discount zones of any certain swing move using the Fibonacci Retracement tool by marking the following levels: (0, 0.3, 0.618, 0.786, 1) .
You can find the Fibonacci Retracement tool in all charting programs. You can read more about Fibonacci Retracement at: https://www.investopedia.com/terms/f/fibonacciretracement.asp
3.3 - Considerations
When considering short positions, it is optimal to take entries from the premium zone .
When considering long positions, it is optimal to take entries from the discount zone .
Ideally, an optimal trade entry (OTE) is considered between the 61.8% and 78.6% of the move.
