Learn PD Arrays
Premium/Discount arrays, also known as PD arrays, are very valuable assets in the toolbox of all successful ICT/SMC traders. In conjunction with other ICT concepts, PD arrays can help you to determine bias in the markets. In this article, we will explore the fundamentals of ICT PD Arrays, their significance in trading analysis, and how you can utilize them to enhance your trading strategies. Let's get started!
PD arrays are drawn from the top to the bottom of a dealing range, which encompasses the highs and lows formed when both buy-side and sell-side liquidity are taken. To identify the dealing range, simply drag the Fibonacci retracement tool across the range and take note of the 50% level. This level acts as the equilibrium point within the PD Array.
Within PD Arrays, premium levels occur when the price trades above the equilibrium point, suggesting potential selling pressure. On the other hand, discount levels manifest when the price trades below the equilibrium, indicating potential buying pressure. These premium and discount levels act as key reference points in determining market bias.
PD Arrays serve as confirmation tools, reinforcing other trading signals or patterns you may utilize in your analysis. When PD Array levels align with other indicators, it adds an extra layer of confluence to your trade entries. By incorporating PD Arrays into your analysis, you can improve the accuracy of your trading performance.
By effectively understanding and applying PD Arrays, you gain valuable insights into the dealing range and the dynamics of buy-side and sell-side liquidity. This enhanced understanding allows you to make more informed trading decisions and identify high-probability trade setups. PD Arrays add an additional dimension to your analysis, providing valuable confluence and improving your overall trading performance.
PD Arrays are fundamental tools for ICT/SMC traders. By recognizing the significance of dealing ranges, equilibrium levels, and premium and discount levels, you can gain a clearer view of market bias and identify higher probability trade opportunities. PD arrays are one of many tools that will aid you on your journey as a trader!