Half a range is expensive, half is cheap, and the quarters either side mark where that becomes obvious. The premium and discount ict indicator finds a confirmed swing high and low, then draws the three lines that split the distance between them into quarters.
This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.
| Platforms | MT4 (.ex4) + MT5 (.ex5) |
|---|---|
| Chart window | Main price chart |
| Plots | 5: Dealing high, Premium 75%, Equilibrium 50%, Discount 25%, Dealing low |
| Alerts | popup, push notification, email, sound |
| Inputs | 8 |
Drawn output, plot by plot
Five lines, all on the price chart.
`Dealing high` traces orange red at width 2.
`Premium 75%` sits below it in the same colour.
`Equilibrium 50%` traces violet through the middle.
`Discount 25%` traces turquoise beneath.
`Dealing low` closes the range in turquoise at width 2.
- Dealing high: line, orange red, width 2
- Premium 75%: line, orange red, width 1
- Equilibrium 50%: line, violet, width 2
- Discount 25%: line, turquoise, width 1
- Dealing low: line, turquoise, width 2
What feeds each plot
Two confirmed swings
`SwingBars` `8` bars either side must fail to beat a bar before it counts. That is a wide window, so the two anchors describe real structure rather than a passing wobble.
How far back it looks
`RangeMaxBars` `500` caps the search. Past that the scan stops, which keeps the range anchored to structure you can still see on the chart.
Splitting the distance
Three fractions of the range. Low plus three quarters gives the premium line, plus a half gives equilibrium, plus a quarter gives discount. Nothing else is computed.
Reading it correctly
Above `Equilibrium 50%` price is in premium.
Below it price is in discount.
The violet line is the one to watch first.
`Premium 75%` and `Discount 25%` mark the outer quarters.
Both dealing lines are the swings themselves.
Every line holds until a new swing confirms.
Alert channels in this build: popup, push notification, email and sound, one message per closed bar.
Price reaching one of the drawn lines is what makes this tool speak, and `EnableAlerts` decides whether it does. `EnablePopup` is on already. The phone, mail and desktop-audio routes behind `SoundFile` all start closed.
Every Premium and Discount ICT Indicator input
Core settings
| Setting | What it does | Default |
|---|---|---|
SwingBars |
Bars either side a swing must beat (confirmation). Bars either side a swing must beat, `8`. | 8 |
Display settings
| Setting | What it does | Default |
|---|---|---|
RangeMaxBars |
How far back to search for the two swings. How far back the search reaches, `500`. | 500 |
Alert settings
| Setting | What it does | Default |
|---|---|---|
EnableAlerts |
Whether the tool speaks at all, `true`. | on |
EnablePopup |
It speaks as a terminal dialog, `true`. | on |
EnablePushNotify |
It reaches a phone too, `false`. | off |
EnableEmail |
It goes out as mail, `false`. | off |
EnableSound |
It plays through the desktop, `false`. | off |
SoundFile |
The clip it plays, `”alert.wav”`. | alert.wav |
Choosing a market
An eight-bar swing rule needs a chart where structure lasts. EURUSD H1 is the reference chart, where a range holds for days. Go faster and the anchors move constantly. Go slower and the range can span a month of trade.
Where it lets you down
A swing confirms eight bars after it printed.
The range jumps when a new swing replaces an old one.
Quarters of a past range predict nothing on their own.
A range built during chop describes chop.
Copy the compiled Premium and Discount ICT Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.
Related on forexmt4systems.com: ICT Style Strategy.
Background reading on the method behind the Premium and Discount ICT Indicator: Minority discount on Wikipedia, Candlesticks And Traditional Chart Analysis at StockCharts ChartSchool.
Download the Premium and Discount ICT Indicator for MT4 and MT5
The zip holds the compiled Premium and Discount ICT Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.
Download this indicator free
Enter your email and the file is yours. You also get the full MT4 and MT5 library.
FAQ
What does SwingBars 8 have to beat?
Eight bars on each side of a candidate. That is a sixteen-bar window in total, so the two anchors are genuinely significant highs and lows rather than small turns, at the cost of confirming eight bars late.
Where does the Equilibrium 50% line sit?
Exactly halfway between the two dealing lines. It is the divider the whole idea rests on: above it price is trading at a premium to the range, below it at a discount.
Why cap the search with RangeMaxBars 500?
Because a range anchored to a swing from two thousand bars ago describes history rather than the market in front of you. Five hundred bars keeps both anchors inside a span you can still scroll to.
What are the Dealing high and Dealing low lines?
The two confirmed swings themselves, drawn as the outer edges of the range. Everything between them is a fraction of the distance those two prices define.
Are results guaranteed?
No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Premium and Discount ICT Indicator as one input. Always backtest before trading live.
Category: this is part of our Smart Money collection. Browse more Smart Money for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.
External references
- For background on this concept, see Minority discount on Wikipedia.
- For broader market context, see Candlesticks And Traditional Chart Analysis at StockCharts ChartSchool.
About the author
Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.
How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.