Premium / Discount Screener for Range today with VWAPPremium / Discount Screener – Today’s Range Midpoint + VWAP Deviation
This open-source overlay indicator is a clean, real-time visual screener that shows whether current price is trading at a **premium** (overvalued relative to today's range + VWAP) or **discount** (undervalued), helping traders quickly assess intraday location bias.
Core Concept
Intraday traders often use the developing daily range and VWAP as reference points for value:
- Price significantly above the midpoint of today's high/low → premium zone → potential mean-reversion sells or overextended rallies
- Price significantly below the midpoint → discount zone → potential mean-reversion buys or oversold bounces
- VWAP deviation adds context (institutional fair value proxy)
This script combines both references and flags extreme deviations with color-coded labels and background tint.
How It Works
1. Tracks today's high/low (resets at new day)
2. Calculates midpoint = (Today's High + Today's Low) / 2
3. Tracks session VWAP (hlc3-based, resets daily)
4. Computes two deviation percentages:
- Distance from midpoint (%)
- Distance from VWAP (%)
5. Classifies status based on user-defined threshold (default 0.5% from midpoint):
- Premium (red): close > midpoint + threshold
- Discount (green): close < midpoint – threshold
- Fair/Neutral (gray): within threshold band
Visual Output
- Last-bar label (toggleable) showing:
- Status: PREMIUM / DISCOUNT / FAIR
- % distance from midpoint
- % distance from VWAP
- Background tint:
- Light red → premium zone
- Light green → discount zone
- No tint → neutral/fair
Why this is useful
- Provides instant visual context for bias without needing complex zone drawing
- Helps filter entries: e.g., look for longs in discount + bullish structure, shorts in premium + bearish structure
- VWAP deviation adds institutional reference — price far from VWAP often signals exhaustion or absorption
- Lightweight and non-repainting — ideal for fast decision-making on lower timeframes
How to Use
- Best on **5m–1h timeframes** for intraday trading (forex majors, indices, gold, futures, high-volume stocks)
- Recommended symbols: EURUSD, GBPUSD, XAUUSD, NAS100, ES1!, NQ1!, SPY
- Typical workflow:
1. Wait for price to reach deep discount/premium zone
2. Confirm with price action, structure (BOS/CHOCH), or order blocks
3. Avoid trading near "Fair" zone unless strong catalyst/breakout
- Tune threshold:
- Lower (0.2–0.4%) for very volatile instruments (crypto, gold)
- Higher (0.6–1.0%) for less volatile pairs (EURUSD, major indices)
Inputs
- Show Premium/Discount Label: toggle last-bar text label
- Alert Threshold % from Midpoint: default 0.5% (sensitivity for premium/discount classification)
Publishing Recommendation
- Publish with a clean chart (e.g., 15m–1h XAUUSD, EURUSD or NQ during active session)
- Show a period where price moves into premium and discount zones (label + background tint visible)
- No extra indicators/drawings needed for basic use
This is a simple, educational location bias tool — fully open-source. It highlights relative value zones — not trade signals. Trading involves significant risk of loss. Use discretion and proper risk management.
Feedback welcome — especially suggestions for adding PD high/low lines or session open!
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