> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/statistics/ohlc-expansion-map/premium-and-discount.md).

# 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`.


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