Premium & Discount

Premium and discount split a price range — usually a recent swing high to swing low — in half at its midpoint, called equilibrium. The upper half is premium: expensive relative to the range, where traders looking to sell prefer to act. The lower half is discount: cheap relative to the range, where traders looking to buy prefer to act. It's a way of describing where price sits within its recent context, not a level on its own.

Optimal trade entry (OTE)

Optimal trade entry narrows this further to a specific sub-range: the 61.8%–79% Fibonacci retracement zone measured against the move that set the range. It's the deepest part of discount (for a long) or premium (for a short) that a pullback commonly reaches before the prior move resumes — the idea being that a retracement stopping somewhere in that zone still respects the original move's structure, while one that goes further starts to look like the move itself is failing.

Both terms are context, not a trigger — they describe where price is relative to its own recent range, which traders then weigh alongside other structure (a nearby fair value gap, order block, or prior reaction) before deciding whether a level is worth watching closely.