Video summary

Premium & Discount: Cara Menentukan Area Entry yang Lebih Akurat | ICT Trading

Main summary

Key takeaways

Educational

Main ideas / lessons

  • The video explains how to use Premium and Discount zones (from ICT / Smart Money Concepts) to judge whether price is in a “better” area to buy or sell, based on Fibonacci levels.
  • Premium/Discount zones require first setting up Fibonacci correctly.
  • The method is used alongside market structure + liquidity to avoid entering at poor locations.
  • Overall workflow:
  1. Identify the relevant daily dealing range (using swing high/low concepts).
  2. Draw Fibonacci between them (with the key midpoint at 0.5).
  3. Interpret where price interacts with premium (sell area) vs discount (buy area).
  4. On lower timeframes, wait for confirmation (e.g., rejection/displacement/order-block-type references such as CISD).
  5. Enter with a defined stop-loss and choose a realistic target (RR often ~2 for intraday).

Step-by-step methodology

1) Set up Fibonacci for Premium/Discount

  • Open Fibonacci settings in your platform (often in “style” settings).
  • Set levels as described by the speaker:
    • Turn on/use levels including 0, 0.5, and 1
    • The key midpoint is 0.5 (the midpoint between boundaries).
  • For teaching premium/discount, use 0.5 as the “middle / equilibrium” reference (50%).

2) Determine the dealing range (daily range / reference box)

  • Identify the dealing range using:
    • Upper boundary: BSL
    • Lower boundary: SSL
  • These come from the swing high / swing low that act as the reference.
  • The video emphasizes focusing on the price “inside the box” defined by those levels.

3) Define Premium vs Discount zones using Fibonacci

After drawing Fibonacci:

  • Below 0.5 = Discount zone
  • Above 0.5 = Premium zone

Trading direction logic:

  • For a long (buy): price ideally should be in the Discount zone (below 0.5).
  • For a short (sell): price ideally should be in the Premium zone (above 0.5).

4) Choose the correct liquidity / FG (fair-group / liquidity pool)

  • The speaker warns that when there is “a lot of liquidity” (many FGs at similar areas), you may be unsure which is valid.

  • Rule given:

    • For a buy: choose the FG located below 0.5 (within discount).
    • For a sell: choose the FG located above 0.5 (within premium).

  • Conceptual goal: trade the interaction that matches the premium/discount bias, not the closest-looking one.

5) Wait for confirmation on a lower timeframe (entry refinement)

  • Even after price moves into the intended zone, you don’t enter immediately.
  • Move to a lower timeframe (examples mentioned: 30 minutes, then 5 minutes or 3 minutes).
  • Look for a confirmation setup such as:
    • rejection candle / block
    • displacement
    • CISD event

Common sequence described:

  • Liquidity is tapped (swap/reach liquidity),
  • followed by rejection/displacement showing directional intent,
  • then price forms the entry reference (FG / CISD / order-block-like area).

6) Entry, stop-loss, and target (risk/reward)

  • Entry example logic:

    • Enter when the confirmation/structure appears on the lower timeframe.
    • Set SL near the tail of the identified liquidity/FG reference (tail of FG).

  • Targeting:

    • Use nearby liquidity levels on the chart.
    • The speaker also references targeting context around 0.5/equilibrium areas.

  • RR guidance for intraday:

    • The speaker prefers around ~2 RR intraday.
    • Mentions some traders use higher/larger variations, but avoids overly long RR intraday.

Examples shown in the video

Example 1 (Short / US30)

  • Price formed structure consistent with a bearish continuation setup (speaker references concepts like MSS / break of structure).
  • Determine:
    • BSL (upper) and SSL (lower) to draw the dealing range.
  • Identify liquidity pools (multiple FGs), then choose the valid one based on zone:
    • Premium interaction is emphasized for the sell.
  • Confirmation:
    • On 30 minutes: identify liquidity interaction + rejection candle/block.
    • On 5 minutes: use the relevant rejection block and reference CISD + displacement/structure behavior.
  • Entry:
    • Enter after confirmation; SL at tail of FG.
  • Target:
    • Aim for nearby liquidity; speaker notes 2 RR is most practical intraday.

Example 2 (Long setup / alternative “nglong”)

  • Price formed market structure implying an SSL present (long bias).
  • Determine dealing range:
    • Focus on the correct box area between BSL and SSL.
  • When multiple FGs exist:
    • Ignore the one unlikely to bounce effectively (speaker says probability is low).
    • Prefer the FG aligned with discount zone (below 0.5).
  • Confirmation:
    • On 30 minutes: wait for a rejection block type confirmation.
    • On 3 minutes: look for CISD event and displacement.
  • Entry:
    • Use the standard entry approach referencing displacement + FG/CISD confirmation.
  • Targeting:
    • Use a quick liquidity-based move.
    • Speaker mentions 30-minute targeting is sometimes “too far” for quick intraday trading.

Key conclusions

  • Premium/discount zones are meant to improve entry location accuracy, not act as a standalone direct trading trigger.
  • Success depends on applying:
    • Liquidity
    • Market structure
    • Lower timeframe confirmation setups
  • Fibonacci premium/discount is mainly useful for:
    • Bias and confirmation (especially when using 1H/30M for bias, and then 1H/30M or lower for confirmation/entry).
  • The method is positioned as a complement to the broader ICT Smart Money Concepts toolkit.

Speakers / sources featured

  • Trader Blueprint (speaker: “I’m T brin / T Blueprint”)
  • ICT Trading / ICT Smart Money Concept (context/source of concepts, not a separate video author)
  • Trader Blueprint’s YouTube channel (mentioned for subscription)
  • Trader Blueprint’s Instagram (mentioned for follow)

Original video