> ## Documentation Index
> Fetch the complete documentation index at: https://docs.luxalgo.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Premium & Discount Zones

<img src="https://mintcdn.com/luxalgo/-_VCBHd2xJR0PihX/public/images/lux-pa/zones/settings.png?fit=max&auto=format&n=-_VCBHd2xJR0PihX&q=85&s=cacd01006f039f6b5b2a61fffdb896bd" alt="" width="417" height="410" data-path="public/images/lux-pa/zones/settings.png" />

Premium & Discount zones highlight three specific price areas, one upper area (premium), one central area (equilibrium), and one lower area (discount).

<img src="https://mintcdn.com/luxalgo/-_VCBHd2xJR0PihX/public/images/lux-pa/zones/premium-discount.png?fit=max&auto=format&n=-_VCBHd2xJR0PihX&q=85&s=eb731b7f1fdf0e0fe56bbeff8031483b" alt="" width="1682" height="818" data-path="public/images/lux-pa/zones/premium-discount.png" />

These areas can be used to know when an event is occurring at a premium, discount, or within an equilibrium zone.

<Note>
  If a condition indicative of an uptrend occur within a discount zone then it would have an higher chance of being the cause of a reversal, this also applies for a condition indicative of a downtrend occurring within the premium zone.
</Note>

Additionally, each area can be used as a support or resistance.