# Premium & Discount

<figure><img src="/files/wjWqoajnJuXg27n4izBR" alt=""><figcaption></figcaption></figure>

The **Premium & Discount** display mode is a simplified visual framework that allows traders to quickly identify whether price is in a "Buy Zone" or a "Sell Zone" relative to its historical expansion behavior.

### How it Works

Instead of showing multiple Resistance and Support zones, this mode collapses the levels into two primary blocks:

#### 1. Premium Zone (Blue/User-Defined)

* **Definition:** The area starting from the **Resistance 1** (Manipulation) area up to the **Resistance 2** (Distribution) extreme.
* **Logic:** When price enters this zone, it is historically "expensive" relative to its open. Institutional algorithms often look to distribute (sell) here.
* **Trading Action:** Look for bearish reversals (MSS, FVG closure, Sweeps) to target the Open or the Discount zone.

#### 2. Discount Zone (Green/User-Defined)

* **Definition:** The area starting from the **Support 1** (Manipulation) area down to the **Support 2** (Distribution) extreme.
* **Logic:** When price enters this zone, it is historically "cheap" relative to its open. Institutional algorithms often look to accumulate (buy) here.
* **Trading Action:** Look for bullish reversals (MSS, FVG closure, Sweeps) to target the Open or the Premium zone.

### Why use this mode?

* **Clarity:** Reduces chart clutter by focusing only on the high-probability institutional interest areas.
* **Bias Confirmation:** If your higher-timeframe bias is bullish, you should wait for price to reach the **Discount** zone before looking for entries.
* **Targeting:** Use the opposing zone as a primary take-profit area for expansion trades.

### Settings

You can customize the colors for both Premium and Discount zones in the **Settings** group under `Display Mode`.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.candelacharts.com/statistics/ohlc-expansion-map/premium-and-discount.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.