Premium & Discount Zones (HuntsPip)

Premium & Discount Zones (HuntsPip) maps the current swing range into premium, discount, and equilibrium levels based on market structure detected on a configurable timeframe. It enables traders to identify optimal entry areas by highlighting where price is trading relative to the 50% equilibrium line, with premium zones signaling potential sell opportunities and discount zones indicating favorable buy setups within the context of the prevailing trend.


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█ CONCEPTS

In price action analysis, the range between a swing high and swing low can be divided into zones relative to the midpoint. The upper half of the range - above the 50% level - is referred to as the premium zone, while the lower half is the discount zone. The midpoint itself is known as equilibrium.

Some traders use these zones as a framework for trade direction. In a bullish trend, the idea is that price pulling back into the discount zone may offer more favorable entries, while in a bearish trend, rallies into the premium zone may be considered areas to look for short opportunities. The equilibrium level serves as a reference point dividing the two halves. These concepts are commonly used in Smart Money Concepts (SMC) and ICT-style analysis as a way to contextualize where price sits within the current structural range.


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█ WHAT IT DOES

This tool identifies the active swing high and swing low using market structure analysis on a user-selected timeframe, then draws three horizontal lines across the chart: one at the swing high (premium), one at the swing low (discount), and one at the midpoint (equilibrium). Each line is color-coded and extends forward from the current price area, with optional labels identifying each level.

The swing range updates automatically as new structure forms. The tool uses the same break-of-structure logic as a standalone market structure indicator - detecting swing highs and swing lows on the chosen timeframe and tracking when price breaks beyond them to determine trend direction. The premium and discount levels always reflect the most recent structural range.

A status message appears in the bottom-right corner of the chart. When no valid structure has formed yet, it displays a waiting message. If the selected timeframe is lower than the chart timeframe, an error message is shown instead.


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█ FEATURES AND USAGE

PREMIUM AND DISCOUNT

• Timeframe - Sets the timeframe used for swing detection. Must be equal to or higher than the chart timeframe. Using a higher timeframe produces wider structural ranges that update less frequently.
  
  
• Type - Controls how strictly a break of structure is confirmed.
    - Conservative - Requires a candle close beyond the swing level.
    - Aggressive - Triggers on any high or low beyond the swing level, including wicks.
  
  
• Premium / Equilibrium / Discount Colors - Three color pickers controlling the colors for the premium line, equilibrium line, and discount line respectively.
  
  
• Screen Top-up Color - Controls the text color used for the status message in the bottom-right corner of the chart.
  
  
• Label - Toggles the Premium, Equilibrium, and Discount text labels on or off.
  
  
• Size - Controls the size of the labels and the status message text.
    - Tiny, Small, Normal, or Large.
  
  
• Line Width - Controls the thickness of the three zone lines. Range: 1-5.
  
  
• Line Extend - Controls how far forward the lines extend beyond the current bar. Max: 200 bars. Increase this to keep the levels visible further to the right of the chart.
  

This tool works on any instrument and any timeframe, provided the selected structure timeframe is equal to or higher than the chart timeframe. It pairs well with market structure or order block indicators to add context about where price sits within the current range. These zones are best used as a directional filter or confluence layer alongside other analysis, not as standalone entry triggers.