The upper and lower halves of a range — you sell premium and buy discount, never the reverse.
Premium and Discount divide any range at its midpoint (50% equilibrium). The upper half is Premium — where selling has the statistical edge. The lower half is Discount — where buying has the edge. The rule is simple: in a bullish context, you only enter longs in Discount; in a bearish context, you only enter shorts in Premium. The overnight midpoint — marked in White at 6:25 AM in the Protocol — is the LA Traders equilibrium line for the session. Above it, you're a seller. Below it, you're a buyer. Context decides.
Most losing trades are good ideas at bad prices. Premium/Discount is the filter that keeps you buying low and selling high — literally.
ON range: 5,828–5,848. Midpoint: 5,838. Price sweeps the high and retraces to 5,841 (still Premium). Short is valid. If it were at 5,836 (Discount), you'd skip the short and look for longs.
Premium and discount tell you where to look for entries. The Protocol says: sell premium, buy discount. If the Reveal is bearish, you short from premium; if bullish, you long from discount.
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