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Does the Concept of Premium and Discount Break Down in Trend Regimes?

Earl Christian

In hyper-trending markets driven by central bank policy or major macroeconomic shifts, price consolidates sideways near the swing highs rather than pulling back to equilibrium. Traders who strictly demand a 50 percent discount before buying miss entire multi-week moves. Should you abandon discount zone rules when a strong momentum trend is confirmed?

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  • Earl ChristianOP

    Why does waiting for price to return to the 50 percent Fibonacci discount zone keep you out of the strongest trends of the year?

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