Automatic Premium and Discount ICT Indicator MT4
Automatic Premium and Discount ICT Indicator MT4
The Automatic Premium and Discount ICT Indicator MT4 is a crucial ICT tool in MetaTrader 4, designed to help traders easily spot Premium and Discount zones within market trends.
This indicator automatically detects Swing Highs and Swing Lows, mapping out Premium and Discount zones based on market movements. A "P" marker appears at highs, signaling Premium levels, while a "D" marker under lows represents Discount areas. Clicking these markers activates highlighted regions—pink for Premium and blue for Discount—including a reference 50% midpoint level for trade analysis.
Indicator Specification Table
Here’s a breakdown of the Automatic Premium and Discount Indicator’s core features:
Category | ICT - Liquidity - Levels & Zones |
Platform | MetaTrader 4 |
Skill Level | Advanced |
Trading Type | Reversal - Continuation |
Timeframe | Multi-timeframe |
Trading Style | Scalping - Intraday |
Market | All markets |
Premium and Discount Indicator Overview
This indicator constructs a structured box divided into Premium (pink) and Discount (blue) zones. In an uptrend, the Premium Zone extends from the start of the trend to 50%, offering an area for potential buy trades. Conversely, in a downtrend, these zones operate inversely, helping traders identify selling opportunities.
Buy Trade Setup
For example, in a 30-minute GBP/USD chart, selecting the “D” marker at a swing low initiates the visualization of Premium and Discount zones. The tool then maps out the swing’s movement, marking the Premium Zone (pink area), which can act as an ideal entry point if the price retraces.
Sell Trade Setup
In a 30-minute Binance Coin (BNB) chart, the indicator utilizes Swing Highs and Lows to define Premium and Discount zones. A retracement into the pink Premium Zone often signals a potential sell trade opportunity.
Automatic Premium and Discount Indicator Settings
The following settings allow traders to fine-tune the indicator:
- Small Swing: Activates analysis for minor swings.
- Big Swing: Focuses on major swing points.
- Opposite Color: Adjusts the color of the zigzag pattern for better visualization.
Conclusion
The Automatic Premium and Discount ICT Indicator MT4 provides a structured way to analyze price movements by identifying key swing levels and generating a zigzag pattern. It marks Premium and Discount zones, helping traders recognize potential entry and exit points.
This liquidity-based MetaTrader 4 indicator pinpoints the 50% retracement zone, assisting traders in capitalizing on price reversals in both uptrends and downtrends.