Premium/Discount Zones with Confirmation Signals

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📌 Indicator Description: Premium/Discount Zones with Confirmed Signals

This indicator identifies dynamic Premium, Discount, and Equilibrium zones based on recent swing highs and lows, helping traders visualize where price is considered expensive, cheap, or fair value. It’s designed for Smart Money Concepts (SMC), ICT-style trading, and anyone who values precision in zone-based analysis.

🔍 Key Features

Swing-Based Zones: Automatically detects swing highs/lows over a customizable lookback period (default: 48 bars — equivalent to 2 days on a 1-hour chart).

Premium & Discount Levels: Define overbought and oversold zones using percentage inputs (default: 25%).

Equilibrium Band (middle): Highlights the no-trade value zone with adjustable width (default: 5%).

Signal Engine: Generates trade signals based on two styles:

Bounce: Reversal signals when price reacts to a zone and confirms direction.

Breakout: Continuation signals when price breaks through a zone with momentum.

Trade Type Selector: Choose between Bounce, Breakout, or Both from the input menu.

Signal Filtering: Limits signals to one per direction at a time to reduce noise.

Visual Styling: Toggle between colored or monochrome themes for clean charting.

🧠 How It Works

Buy signals appear when price confirms strength from the discount zone or breaks above the premium zone.

Sell signals appear when price confirms weakness from the premium zone or breaks below the discount zone.

All signals include a built-in 3-bar confirmation delay to reduce false triggers.

🎯 Ideal For

Traders using SMC, ICT, or price action strategies

Zone-based scalping, swing trading, or intraday setups

Visualizing market structure and value areas with clarity

I hope you find this useful — and wish you Happy Trades!

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Versionshinweise

*** UPDATE ***

The Premium/Discount Zones with Confirmed Signals indicator just got even better — you can now set up alerts to be notified instantly when a new BUY or SELL signal appears.

Whether you're trading bounce setups, breakout momentum, or both, the alert system will keep you in sync with price action — no need to stare at the chart all day.

vorgestern

Versionshinweise

⚙️ My Favorite Settings These are the values I personally use for optimal zone clarity and signal reliability:

Swing Length: 48 (captures 2 days of price action on a 1-hour chart)

Premium Zone (%): 0.25

Discount Zone (%): 0.25

Equilibrium Width (%): 0.05

Trade Type: Breakout

Style: Colored

This setup gives me clean, actionable breakout signals while keeping the chart visually intuitive.