The toolkit can return zones with different utilities to the user. These includes:
- Premium & Discount zones
- Accumulation/Distribution zones
Each one is covered below.
Premium & Discount
Premium & Discount zones highlight three specific price areas, one upper area (premium), one central area (equilibrium), and one lower area (discount).
These areas can be used to know when an event is occuring at a premium, discount, or within an equilibrium zone. Additionaly each area can be used as a support or resistance.
A percentage is displayed on the right side of premium and discount zones, indicatig how close the price is to each zone as a percentage.
Accumulations and distributions are two distinct phases of the market model described by Wyckoff.
The accumulation phase preceed a markup phase, with this phase occuring once price break up the accumulation zone. The distribution on the other hand phase preceed a markdown phase, with this phase occuring once price break down the distribution zone.
The toolkit highlight accumulation phases in red and distribution phases in blue. Additionaly a neutral phase is highlighted in grey, indicating indecision.
Underlying shorter term trends within the zones are highlighted by a Zig Zag by default, returning swing points with several application such as constructing support or resistance levels. This can be disabled from the settings by toggling off Show Consolidation Zig-Zag.