Premium and Discount ICT Indicator MT4
- Indicateurs
- Eda Kaya
- Version: 1.11
- Activations: 10
Premium and Discount PDA ICT Indicator MT4
The Premium and Discount Indicator employs a zigzag pattern to track minor trend movements and determine premium and discount areas. Designed using the ICT trading methodology, this MetaTrader 4 tool assists traders in pinpointing optimal trade entries while efficiently managing Take Profit (TP) and Stop Loss (SL) levels.
Unlike MetaTrader 4’s built-in premium and discount indicators, this version specifically focuses on minor trend formations. The "D" label represents discount zones (lows), while the "P" label marks premium areas (highs). Users can manually draw premium and discount regions by selecting these designated labels.
Premium & Discount Indicator Specifications
The following table outlines the specifications of the Premium and Discount Indicator, including market compatibility, supported timeframes, and trading styles:
Category | ICT - Liquidity - Levels and Zones |
Platform | MetaTrader 4 |
Skill Level | Advanced |
Type of Indicator | Continuation |
Timeframe | Multi-timeframe |
Trading Style | Scalping - Intraday |
Market | All markets |
Overview of the Premium and Discount Indicator
This indicator visually marks premium and discount regions using color-coded boxes. During bullish and bearish trends, the section from the trend’s start to the 50% level is shaded pink, defining the Premium Zone.
Traders often consider this zone as a potential reversal area, making it a favorable entry point during trend movements.
Buying Opportunities in an Uptrend
In a 5-minute GBP/USD chart, the Premium and Discount Indicator identifies key levels using blue and pink boxes. A price pullback to the Premium Zone often signals an ideal buying opportunity as the trend continues to rise.
Selling Opportunities in a Downtrend
In a 15-minute Solana (SOL) analysis, a bearish trend retraces to the Premium Zone, forming a strong sell setup. As shown in the chart below, traders can use this indicator to define premium and discount levels within any minor trend movement.
Indicator Settings
The settings panel for the Premium and Discount Zones Indicator allows traders to customize the appearance of trend markings:
- Opposite Color: Adjusts the zigzag line color for better visibility.
Conclusion
The Premium and Discount Indicator is a vital ICT-based tool for MetaTrader 4, helping traders recognize premium and discount zones within short-term trends.
This indicator leverages color-coded boxes to mark price levels and highlight the 50% retracement area, assisting traders in making precise entry decisions and effectively placing Take Profit (TP) and Stop Loss (SL) levels.