OPEN-SOURCE SCRIPT
Premium / Discount Screener for Range today with VWAP
Premium / 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!
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!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.