This video explains a trading strategy called "PreMarketDesign," focusing on identifying ranges, using Fibonacci tools for market equilibrium, and understanding premium vs. discount zones. The speaker emphasizes the importance of a direction model to avoid losses and offers insights into trading psychology and capital preservation.
The speaker defines a "bearish range" not just as a downtrend, but as a situation where a downtrend has shifted into a temporary uptrend. This means that while the overall direction might have been down, price has broken a high, corrected, confirmed, and then continued upwards, establishing a new range where both buyers and sellers are active. If price had simply continued downwards without breaking a high, it would still be considered a downtrend.
The key Fibonacci levels mentioned for identifying premium and discount zones are:
The speaker also refers to the 50% level as part of the equilibrium within these ranges.
