# Premium & Discount Zones (/platform/algos/price-action-concepts/pdzones)



![](/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).

![](/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.