BitcoinLong
premium/discount theory explained !!
Updated
hi , im hamid and today im going to discuss an interesting theory with u .
between highs and lows of a major move up or down , u can draw a fibo with 0,0.5 and 1 values . so the top part is premium and the bottom part is discount .
then it all comes to this ; price doesn't want to stay in one of these sides for too long , soooo it slides briefly into the other .
then we come to this other understanding that in a non-volatile market , to go beyond premium , first price hunts the liquidity above premium top border , then hunts the liquidity in discount (sometimes even the liquidity bellow it !) and at last goes higher .
all this works in bearish move too but in different order .
as for now price did the first two liquidity hunting sessions , and now ...
well lets see !!
between highs and lows of a major move up or down , u can draw a fibo with 0,0.5 and 1 values . so the top part is premium and the bottom part is discount .
then it all comes to this ; price doesn't want to stay in one of these sides for too long , soooo it slides briefly into the other .
then we come to this other understanding that in a non-volatile market , to go beyond premium , first price hunts the liquidity above premium top border , then hunts the liquidity in discount (sometimes even the liquidity bellow it !) and at last goes higher .
all this works in bearish move too but in different order .
as for now price did the first two liquidity hunting sessions , and now ...
well lets see !!
Trade active
long activated
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.