Inside a range, where you enter is not neutral. Buying near the low of the range and buying near its high are different trades even with the same stop distance, because one has the whole range above it and the other has almost none. The idea comes from Smart Money Concepts: accumulate cheap, distribute expensive. What this indicator adds is that it draws the line for you and keeps it updated as new swing highs and lows are confirmed.
The dealing range: two confirmed swings
Everything rests on the range, and the range rests on two points: the most recent confirmed swing high and the most recent confirmed swing low. Confirmed is the important word. A swing is only a swing once the bars to its right have closed without breaking it, which is why the range is fixed rather than redrawn every tick. It also means the range you see is always slightly behind the market, and that is the price of not repainting.
Premium, discount and the band in between
With a high and a low, the midpoint follows. Above it, price is in premium: the expensive half, shaded red, the side where distribution tends to happen. Below it, discount: the cheap half, shaded teal. Around the midpoint there is a third band, equilibrium, grey, spanning 45 to 55 per cent of the range by default. That band exists because the midpoint is a line, not a wall, and a price two ticks above it is not meaningfully expensive.
Position in the range, as a percentage
The zone tells you which half. The percentage tells you how far. A price at 51 per cent and a price at 94 per cent are both in premium, and they are not remotely the same situation: one is a coin flip away from equilibrium, the other is pressed against the top of the range with very little room left. The panel shows that number continuously, which is what turns a three-colour chart into a reading you can act on.
Swing profiles: how big a range you are measuring
The profile decides how many bars on each side a pivot needs in order to count. Scalper uses five, so the range redraws often and follows minor swings — useful intraday. Swing uses ten and is the default, sized for four-hour and daily charts. Long Term uses twenty-one and only moves when a major swing forms, which gives a stable background range. The same chart can be in premium on one profile and in discount on another, and both readings are correct: they are measuring different ranges.
The panel: zone, position and the two edges
The panel condenses the read into four rows: the current zone, the position as a percentage, and the two prices that define the range. Those last two matter more than they look. They are the levels the whole reading depends on, and knowing exactly where they sit tells you when the range is about to be replaced by a new one.
