Most traders lose money for one simple reason: They buy expensive and sell cheap.
Smart money does the opposite.
They don’t care about indicators.They don’t care about hype.They care about location.
If you don’t know whether price is in premium or discount, you’re gambling.
🔴 Premium Zone = Danger Zone
Price is in premium when:
It’s near range highsIt’s near resistanceIt already ran hardEveryone is bullish
This is where:
❌ Breakouts fail
❌ Risk is high
❌ Reward is poor
❌ Retail FOMOs
❌ Smart money distributes
Retail buys strength.
Institutions sell into that strength.
That’s why tops feel euphoric and bottoms feel terrifying.
🟢 Discount Zone = Opportunity Zone
Price is in discount when:
It’s near range lowsIt’s near supportIt pulled back deeplyEveryone is scared or bored
This is where:
✅ Risk is low
✅ Reward is high
✅ Smart money accumulates
✅ Weak hands sell
✅ Long-term positions are built
Smart money buys fear. Retail sells fear.
Every cycle. Same story.
⚖️The Middle = Chop Zone
The middle of a range:
Has no edgeNo asymmetryNo liquidityNo emotion
This is where:
❌ Traders get chopped
❌ Stops get hit
❌ Fees stack up
❌ Confidence dies
Pros wait for extremes. Amateurs trade the noise.
🧩 Liquidity + Zones = Edge
Premium & discount zones only work when you understand liquidity:
➡️ Highs = buy stops
➡️ Lows = sell stops
➡️ News = excuse
➡️ Liquidity = target
Sweep highs → premium → rejection = sell
Sweep lows → discount → reversal = buy
No guessing. No hope.
Just structure.
🛡️ Risk Management (Non-Negotiable)
Premium trades:
Small sizeFast exitsTight control
Discount trades:
Bigger patienceBetter R:RClear invalidation
If your entry sucks, your strategy sucks.
🎯 Final Truth
Markets don’t reward prediction. They reward location.
Smart money:
✔️ Buys cheap
✔️ Sells expensive
✔️ Waits for liquidity
Retail:
❌ Chases green
❌ Panics on red
❌ Trades emotion
Stop trading candles. Start trading value. Decode the market or become liquidity.
#smartmoney $BTC $ETH