269# Premium–Discount Reversal & Breakout System

Joy22 2025

This strategy is designed for traders who want to combine market structure, premium/discount logic, and dynamic support/resistance for precise entries on MT4.
It works on any timeframe from 1 minute and higher, and can be applied to forex, gold (XAUUSD), or indices.

By using the indicators Support and Resistance Zone V2, LuxAlgo Premium and Discount Zone, and Run Median, this method identifies high-probability reversal and continuation areas where price tends to react strongly. The main goal is to buy low in the Discount Zone and sell high in the Premium Zone, while confirming direction with the Run Median trend line.

Indicators Used

1. Support and Resistance Zone V2 – identifies dynamic supply and demand zones.

2. LuxAlgo Premium and Discount Zone – highlights overbought (Premium), oversold (Discount), and neutral (Equilibrium) areas.

3. Run Median (default settings) – acts as a dynamic trend filter and moving average.

Timeframe

• 1 Minute (M1) and higher (M5, M15, M30).

  Best results are often seen on M5–M30 with XAUUSD or major pairs.

Strategy Concept

The strategy looks for reversals or trend continuations when price moves between Premium, Discount, and Equilibrium zones, with confluence from Support/Resistance levels and Run Median direction.

BUY SETUP (from Discount Zone)

Conditions

1. Price enters the Discount Zone (green LuxAlgo area).

2. A Support Zone (Support & Resistance Zone V2) overlaps or is near the Discount Zone.

3. A bullish candle closes above the Run Median.

4. (Optional) Price breaks a minor resistance or forms a higher high.

Entry

• Enter Buy at the candle close above the Run Median.

Stop Loss

• Below the nearest support or Discount Zone low.

Take Profit

• TP1: Equilibrium Zone.

  TP2: Premium Zone or next Resistance area.

  Optionally trail stop along the Run Median.

SELL SETUP (from Premium Zone)

Conditions

1. Price enters the Premium Zone (red LuxAlgo area).

2. A Resistance Zone (Support & Resistance Zone V2) overlaps or is near the Premium Zone.

3. A bearish candle closes below the Run Median.

4. (Optional) Price breaks a minor support or forms a lower low.

Entry

• Enter Sell at the candle close below the Run Median.

Stop Loss

• Above the nearest resistance or Premium Zone high.

Take Profit

• TP1: Equilibrium Zone.

  TP2: Discount Zone or next Support area.

  Optionally trail stop along the Run Median.

Submit by Maximo Trader 19/12/2012

Time Frame 15 min or higher.

Currency pairs:any.

Metatrader Indicators:

T3 Dragon 2( 2, 4,2,5);

All pivot;

MACD (13, 27,1),

MACD with EMA (6, 60,1,7).

Long Entry

T3 Dragon Blue confirmed by MACD (13,27,1)>0 and MACD (MACD with EMA)>0,0002.

Short Entry

T3 Dragon Red confirmed by MACD (13,27,1)<0 and MACD (MACD with EMA)<0,0002.

Exit position

options:

In the pictures Forex Scalping with T3 Dragon 2 in action.

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