Premium/discount

Indicators

• Price
• High
• Low

Premium/discount

equilibrium ±5 % · 10 · 10

• In discount
• In premium
• At equilibrium
• Position %
• Range high
• Range low
• Equilibrium

This is how the node looks on the board: inputs on the left, outputs on the right.

Where the price sits in the swing range. Splits the range between the last swing high and the last swing low: in the upper half the price is expensive (premium), in the lower half cheap (discount), around the middle at equilibrium. Many traders prefer to buy in discount and sell in premium. If the price rises above the swing high, the range grows with it; a new swing sets it anew. The node reports which zone the price closes in and gives its position in percent. Example: “in discount” with AND in front of a bullish order block lets only returns in the cheap half through.

What it looks like

• Premium
• Equilibrium
• Discount
• in discount

BTC/USDT candles in the range of the last swings: at the top the highest high since the last confirmed swing high, at the bottom the lowest low since the last swing low. The upper half is premium, the lower half discount, with the equilibrium from 45 to 55 % in between. If the price rises above the high, the range grows with it; a new swing sets it anew, which is why the areas jump.

Setting it in the chart

In the properties, a chart shows the last 150 candles and on top of them what the node finds with your settings; dotted or dashed is what it did not know yet at that time. Drag the edges of the equilibrium at the right edge. Drag the ends of the bracket at the latest swing to change “Candles before” and “Candles after”; at its right end the swing is confirmed. The top line shows the state at the last candle, and the chart follows every setting right away.

More under Smart money and Chart above the price.

Settings

The settings appear on the right under “Properties” once you click the node on the board. Below each field you find the same explanation as here.

Equilibrium ±

Default: 5 % · from 0 to 45 %

How wide the equilibrium around the middle is, in percent of the range. 5 means 45 to 55 %: below is discount, above is premium. With 0 the middle splits the range exactly, with 25 only the lower and upper quarter count.

Candles before

Default: 10 · from 1 to 100, whole number

How many candles before a high must all be lower, before a low higher. With more candles only clearer turning points count.

Candles after

Default: 10 · from 1 to 100, whole number

How many candles after a high must not rise above it before it counts as a swing. Only then does it count here, that many candles later; with fewer candles it counts sooner, but smaller turning points count too.

Example

RSI below 30, but only when the price also sits in the discount of the last swing range, its cheap half.

How to connect the nodes:

1. Candle (Price) → Premium/discount (Price)
2. Candle (High) → Premium/discount (High)
3. Candle (Low) → Premium/discount (Low)
4. Candle (Price) → RSI (Value)
5. RSI (RSI) → Compare (Value)
6. Compare (true/false) → AND (Signal 1)
7. Premium/discount (In discount) → AND (Signal 2)
8. AND (all true) → Telegram (Trigger)

On the board it reads: equilibrium ±5 % · 10 · 10

Chain as JSON

To try it, copy it and paste it in the editor under “Import”. Importing creates a new chain.

premium-discount.json

{
  "name": "Example: Premium/discount",
  "version": 1,
  "nodes": [
    { "id": "c1", "type": "core.candle", "position": { "x": 40, "y": 40 }, "settings": { "pair": "BTC/USDT", "timeframe": "1h" } },
    { "id": "d1", "type": "core.premium-discount", "position": { "x": 260, "y": 40 }, "settings": {} },
    { "id": "r1", "type": "core.rsi", "position": { "x": 260, "y": 170 }, "settings": { "length": 14 } },
    { "id": "k1", "type": "core.compare", "position": { "x": 480, "y": 40 }, "settings": { "operator": "below", "value": 30 } },
    { "id": "a1", "type": "core.and", "position": { "x": 700, "y": 40 }, "settings": {} },
    { "id": "t1", "type": "core.telegram", "position": { "x": 920, "y": 40 }, "settings": {} }
  ],
  "edges": [
    { "from": "c1.close", "to": "d1.close" },
    { "from": "c1.high", "to": "d1.high" },
    { "from": "c1.low", "to": "d1.low" },
    { "from": "c1.close", "to": "r1.in" },
    { "from": "r1.out", "to": "k1.in" },
    { "from": "k1.out", "to": "a1.in0" },
    { "from": "d1.discount", "to": "a1.in1" },
    { "from": "a1.out", "to": "t1.in" }
  ]
}

Inputs and outputs

Only matching types connect: number series to number series (round pin), signal to signal (square), message to message (diamond).

Direction	Pin	Type	Note
Input	Price	Number series	required
Input	High	Number series	required
Input	Low	Number series	required
Output	In discount	Signal (true/false)	–
Output	In premium	Signal (true/false)	–
Output	At equilibrium	Signal (true/false)	–
Output	Position %	Number series	in percent
Output	Range high	Number series	appears in messages as a price, e.g. “$81,616”
Output	Range low	Number series	appears in messages as a price, e.g. “$81,616”
Output	Equilibrium	Number series	appears in messages as a price, e.g. “$81,616”

Good to know

• In messages the values are called “position in range 10 · 10”, “range high 10 · 10”, “range low 10 · 10”, “equilibrium 10 · 10”.
• Warm-up with the default settings: 520 candles (this many extra candles are loaded by the replay before the value is reliable).
• Search also finds it under: premium, discount, equilibrium, range, dealing range, cheap, expensive, ote, smart money, smc.

Technical details

High: highest high since the last confirmed swing high, low: lowest low since the last confirmed swing low, each at most 500 candles back. Position = (close − low) / (high − low) × 100. Discount: position below 50 − equilibrium, premium: above 50 + equilibrium, otherwise equilibrium.

• Type in the chain: core.premium-discount · Version 1.0.0 · Category key ind
• Settings in the chain: band (Equilibrium ±), left (Candles before), right (Candles after)
• Pins in the chain: Input close, high, low · Output discount, premium, equilibrium, position, top, bottom, middle
• Reference tests in the manifest: 1 (with fixed price data: 500 candles of 1h)
• How a node is built