All language subtitles for 6. premium vs discount

going to be high probability
and we're just stacking more

actual real world as we dive
into the charts so with that

the countertrend pullback is
going to work in our favor okay

apply this you know into our
trading plans and into the

have kind of saved down the the
the drawings and that you have

marking out your swing highs
and lows and we can now go and

apply this and go and have a
look and see how this can

I should say so we are now
bullish right we're in line

internal lower height so maybe
this is where you want to get

maybe up into premium prices
because we are pro trend we can

we get that minor break of
structure as soon as we get the

and more yeah we're just
stacking more and more

discount prices but once prices
pulled all the way back into

it's valid to do that. You have
to work out what's in your

in the discount prices once we
get below the the equilibrium

most probable and this is
another tool that we can use,

thinking about these concepts
and how we're actually going to

goes deeper okay so anywhere
within discount prices is

zone here is going to increase
the probability of us not

confluence in our favour we're
trying to you know tilt those

and look at how we can apply to
the charts hopefully you guys

discount of this internal leg
and now if we're getting long

trade management but this is
you know the I just want you

this leg as well, right? You've
had now two essentially you

said that we've gone through
the theory now so we'll next go

the premium up here but then we
also have the premium and

done from the previous lesson
on the markups new charts

draw on again is then mark this
leg out so the internal leg

yeah do whatever works for you
it makes my sense but I just

on and so forth. So at this
point, this would still be in

again see how here what the
difference between the

puzzle okay and you can start
to see now how our price can be

equilibrium or potentially
further right then once we come

the discount right and we're
then get the of character that

price is bullish and then we
don't just buy right as soon as

here instead of just targeting
you know just this high or

trading plan but at the moment,
I'm just talking about what is

that is now in favor of the
swing trade of the swing trend

movement down and now what I
want to do is I don't want to

downside now just give me a bit
more confirmation we're seeing

change of character why is it
not high probability do to do

so there's some of the things
that you can be thinking about

going to increase your strike
rate, what is going to be the

wait for that to pull back to
the premium and that again is

the premium versus discount to
really do that for us. Okay, so

the premium of the swing leg
and again, you can mark out

discount of this single leg as
well okay so again just to

price of the of the internal
leg the expenses expensive

equilibrium and potentially
further into the discount okay

have the leg and you're waiting
for the pull back and you

swing range now we wait for the
price to pull back into the

the premium of the swing leg
okay so we're in the premium

part of the whole swing leg and
we are now in the premium part

with the overall bullish trend
so now we have the internal

bearish order flow kick in this
potentially could be that third

is we want to price to pull
into the premium of this prior

structure making that high high
we're in the discount of that

start to trade that pullback
whilst we were a above this red

in down into the discount of
the overall swing leg we wait

right so if we were with the
swing trend coming down and

countertrend trade is that you
know we're going to just target

never took out the last high
right so this starts to go down

either the most recent week low
or at least down into the

we're in the premium of this
internal leg and we're also in

right once we get down to the
discount anywhere within this

first sign that we get that
change of character that the

right that this substructure
leg essentially so price is

discount anywhere above the red
line is premium so essentially

of a number of different ways
can really really help us and

you know we get that lower low
and price maybe pulling back

I'm getting a little bit ahead
of myself here talking about

this week swing high and
potentially further right so

still be high probability to
look for those countertrend

just applying this very very
very simple tool but in in kind

prices whilst we're still
within the premium it's not the

the red line just represents
the 50% the halfway point that

the word not opaque right I
always get that mixed up just

lower highs and buy higher lows
okay if you want to do that

bullish market anywhere below
the red line is going to be

probability to assume where
that pullback is going to end

going to increase your
probability. Now, don't get me

guess a minimalistic way of
drawing it I'll just quickly

what we can also target is for
price to come down to the

line right anywhere within this
section of price action it can

then hold this with a lot more
confidence and try and target

expect a pullback don't we
where is it going to be highest

is the equilibrium so when
we're in this bullish market

I've put that down to
completely down to zero so it's

for that change of character to
go in our favor to show that

in the live market and you may
have a lot of drawings and and

right starting to apply all of
those concepts that we know

right below the EQ as soon as
we start to go above the EQ and

internal lows why is this a
weak internal low because it

pobability skills in our favour
as much as possible and yeah

target this week low or
potentially down to the

back and it won't go all the
way up to premium, right? And

that well what do we expect
after a break of structure we

then you wanted to play the the
pullback right you wanted to

bit messy but I don't want that
to be messy I want to see price

going to be higher probability
anywhere within this section

bullish market ideally you
want to only be selling whilst

and then we can use other
concepts right like weak

leg right so price pulls back
up to form that lower high now

summarize if you're going to
play countertrend shorts in a

wrong, plenty of time as price
will just pull a little bit

draw mine in the live market
it's just a bit more of a I

we are in the premium of the
swing leg and then once you

want to sell that lower high
remember our job is to sell

prices of the swing leg and now
this is kind of stacking more

it's much lower probability to
be buying that countertrend

aggressive with your trade
there okay so if you are

together and just piecing them
together as sort of one big

and we're short that can be our
first target at minimum but

you know what pairs you are
trading and you will gain that

premium pricing and then
obviously if we were bearish

at the moment currently the way
that I draw it on my charts but

a bit fractal here so we have
you know all of this is within

action I want to see what's
going on so yeah this is just

here but you just have to
manage your expectations that

about to go right so that's the
general idea behind that. So if

of this high and this low then
the countertrend longs are

going to take that countertrend
short in this case and play

will mark out the 50% level of
your range and then anywhere

bit opaque as well and then
here yeah just basically have

it may just be a short move
right and it might not go the

increase your strike rate in
catching the true swing high

premium you can look to take
countertrend shorts on the idea

getting involved in those full
signals prematurely so it can

and then you basically use that
as your premium versus discount

as you can see here we get the
of character the signals that

with experience but as a very
very general rule a blanket

whole way so you can get in and
out and be a bit more

we kind of take this theory
just one little last step

class you are trading no matter
what individual instrument you

and you can draw it between the
low and the high and then that

buy this pullback up here right
let's say that this is the EQ

are trading this theory will
always hold water that the

see that there will be times
where price will not pull back

going to have that higher
probability of catching the low

premium okay so if price is
bullish in this case we we are

something that you need to test
yourself you need to collect

we're in the gray section right
whilst we're still in the

rule that would apply to
everything no matter what asset

zero the one and the nought. 5
but all I have showing in terms

further now the way I've kind
of drawn the premium at

essentially of what you want to
do which is identify the price

completely opaque or
translucent I guess would be

that pullback it's high
probability to do it whilst

right we know that this is the
equilibrium and we're expecting

of the color is the the red
line there just got a little

data on it will obviously
defeat depending on your style

little bit more in a bit when
we go on the charts but this is

that price is going to want to
pull back to at least the

that will actually go right
because you can still buy up

and then stacking those in your
favor to to catch those largest

it a very very thin line grey
but I don't have the background

just sell here straight away
but we want to what do what

right and then all you do is
get your Fibonacci tool your

getting in too early where it
goes up a little bit and then

right so then what we can do is
what I've done here I'll just

right the swing trend so that
gives us that first signal that

swing leg and then you are
playing within this swing range

and into the discount pricing
exact same thing here right

your probability of actually
catching the move that

want you now to stand that
obviously when we're in a

it's just the exact same thing
again but kind of like fractal

discount tool here is
essentially how I personally

swing moves is to wait for
price to come down in here

in a swing bullish trend right
it's best you don't have to

discount anywhere above you'll
be buying or selling in the

before you buy now you don't
have to do that right you will

this discount level the theory
is is you're going to improve

right but it's better in terms
of increasing your probability

high probability if we're
looking to to buy is to wait

signal we then get that bearish
change of character right and

look to get short here and at
minimum target you know the

bit and it will continue going
on so we'll talk about this a

now we're in the premium price
of this leg right that's where

other concepts that we'll be
using later it can get a little

continues the next run up in
towards this high so just got

lower you are buying right
within the swing range you're

short now you've seen enough
confluence and then you can

know those those two minor
breaks of structure to the

the high low maybe in place but
it turns out to be a full

the swing around may be over
and the pullback is starting we

show you the setting so exact
same thing again right just the

of this internal leg right so
we pull back into expenses

price to pull back below the EQ
at some point it's a discount

shorts so we get that minor
break of structure that kind of

high most high probability area
to be buying but if we want to

equilibrium point so the
equilibrium point is

so it's a simple line
essentially just so when you're

colors showing so this is why
it would be like that right but

probability in our favor that
going short here and playing

then you can just draw it up to
the swing high there so that's

working for me see okay anyway
but if we were looking for

kind of really see this concept
of how it pays out so obviously

right you could be looking for
don't know why that's not

probably see the reason why we
use this tool is because it's

premium pricing this is where
price is at higher levels and

when that change of character
occurs because we are in the

of trading how aggressive you
are how conservative you are

then see that change of
character in favor of the trend

to the equilibrium or the
discount it will back a little

the equilibrium you're
essentially buying at a

little bit in our favor but
then it ends up not working we

some very simple instructions
over here on the left hand side

up here right this is the leg
of price action that whole

week lows the internal week
lows or target the equilibrium

get a change of character and
we pull back so as you can

getting long from down here
right then your price runs a

for price to come down into
those discount prices right so

action but anyway we'll talk
about that in a little bit when

halfway point we are now
anywhere in the discount level

short because at any point
right that lower high could be

essentially the 50% level it's
the halfway point between the

how I recommend you kind of
draw it and then you can keep

equilibrium but ideally the
discount pricing okay and then

low forming right so if you
wait for price to come down to

the price leg so essentially
this this whole swing leg run

the levels as well and then you
can play around with the

doesn't really matter you'll
see how we use this in a second

we go below that equilibrium
level once we go below the

you only want zero one and
nought. 5 and then I tend to

character in our favor and then
we get this little pullback

except I have applied this
premium and discount range tool

low and the high and the idea
is that at the halfway point

the higher up in the leg right
this is going to be the more

it on the leg of price action
and it kind of keeps your

is premium and expensive prices
so if we look at the previous

of you know the fair value of
the actual price so then once

then we got full signal here so
when we saw that change of

what often happens is price
likes to pull back past the

so the idea is anywhere in this
boo box below the 50% is we

change of character and the
pullback is starting right and

balance between buyers and
seller at that level in terms

example we're looking at right
where we get that first initial

it's at complete fair value is
that the equilibrium there's a

you draw the tool down to the
bottom of the swing low and

a bullish market you mark out
where your current swing low is

it's in the premium prices so
you can if you want to right

so I just have a pre save ten
like this reasonably neutral

charts nice and simple so you
can focus on the actual price

waiting for price to reach
discount right it can prevent

have cheap pricing anywhere
above it in the grey box this

colors now the way you actually
draw this tool is if we are in

rid of these and then you
want to get rid of those and

this here just for the purpose
of the explanation so you can

and your current swing high so
you know what range we are in

we actually hop on the charts
but for now I'm just going to

transparency there right so
that's essentially all you want

which is probably you know a
trading that you've heard

visibility and what not but
essentially all you want is 01

tracement at the start so if
you just add that to your

I'll show you what it will
probably look like change it to

this side menu you will get
something called the fibre

the default settings you'll
have this horrendous thing that

go into your settings and
change this so that only zero

guess price hatching example
that we're just looking at

now you can change the colors
to whatever you want and

and nought. 5 and then make
sure the top half and the

get rid of the trend line and
then get rid of the prices and

high so in fact what I would do
is actually show you how I do

same thing we want to buy low
and we want to sell high right

is ticked get rid of everything
else and then keep the one get

this so if you go over to the
left hand side and you open

then you click that now when
you first drag this out in fact

so this concept is very very
simple it's the exact same I

bottom half are slightly
different colors well even that

favorites if you haven't
already got it on there and

here which basically just draw
this box from the low to the

to customers a higher price
than which they bought and they

right at low prices and they're
going to want to sell that back

learned about market structure
up until now so the idea behind

thing you know we're we're
running a business and the

products that we are you know
buying selling that we're

will essentially lock in their
profit right so it's exact same

premium and discount is
essentially buy low sell high

looks like this right now what
you want to do is essentially

altogether but in this just
just as one video alone we're

world right a business is going
to want to buy their stock

there's many things that we can
use and we're going to combine

a normal business would run
itself sort of in the real

is the idea of premium versus
discounts so like I was saying

few concepts that we can look
at and introduce that can help

these full signals and
increasing our probability of

those concepts as you probably
guess by the title of the video

of premium discount with
everything that you have

us to potentially stay out of
getting trapped and trading

only trading the moves when
they're actually going to play

plenty of times essentially all
just boils down to you know how

trading is just simply currency
and we want to do the exact

literally just going to look at
how we can introduce the idea

out so essentially increasing
our strike rate now one of

weak swing high right so change
of character I guess is one

starting but sometimes it can
give us full signals so it's

lower highs to form that next
higher high right we get that

pullback may be finished and
this next swing leg may be

may be in place and then that
pro-trend swing move has about

signal that the pullback now
has finished that the high low

be the swing high low and
actually we're likely to pull

this case we form that lower
low lower high lower low lower

internal change of character
and again this may be a a

ending and that a pullback is
starting and that when the

quite a thing quite a few
things that we can do quite a

tool that we can use to help us
identify that swing run is

actually this low is now going
to get run this is not going to

then gives us another signal
and a warning that okay

highs high lows and high highs
is suddenly broken again we get

series of lower highs to give
us that high high so we can use

high lower low and then we get
that break of that series of

that as a signal that
potentially the swing high low

to commence with the first
minimum target of breaking that

change character to the
downside so that series of high

internal change of character
right to the downside which

back deeper right and then we
pull back deeper and then in

is now in place and potentially
we are about to start the next

series of lower lows and lower
highs right with the internal

bullish swing leg to make that
high high okay but as we were

into the market right that some
has stepped in to break this

structure there we get another
change of character as price

a short lived bullish move and
then price can you know again

that lower low so that first
lower low again is that next

initial minor low get broken to
the downside then we get a

structure and then price breaks
up we get that minor break of

highs right showing us that
some bullish intent has come

looking at right sometimes it
can be a full signal it can be

now forms that first high high
again after a series of lower

and reverse and cause a swing
lower low right but we can use

minor lower low and that minor
lower high right that can then

where we see the initial change
of character we see that

this case one of the examples
that we looked at before was

get that minor break of
structure and we see that for

is going to pull back or even
if that's actually going to go

character essentially just one
sort of tool on its own so in

indication of what may be
happening so change of

those those minor structure
breaks and that internal

signal to us that this swing
run is now over and the

what we can do or well we don't
even have to trade it but we

pullback is about to commence
now we never know how far price

next right and if we see
something like this where we

price to pull back before
potentially looking for a trade

can also just use it to
anticipate what's happening

structure changes of character
to sort of give us an

initial change of character
right where we get that first

example and we have the swing
high the swing low and then

structure those substructure
breaks and those minor breaks

another swing high up here
right we don't have to wait for

high and between the swing low
is essentially that internal

but also looking at the breaks
of those minor lows and all of

the internal structure that
stuck between that swing range

changes of character so not
only looking at those major

like that any structure or
price action between the swing

of structure so when we have a
bullish trending market for

call them the more basic
components of market structure

essentially looking at a few
more of the I guess you could

breaks of structure on those
major swing highs as swing lows

In the previous couple of
lessons where we've been

one of the sort of powerful
concepts that we looked at was

really aid us in our analysis.