Market Structure & Liquidity · Entry 35 of 71

What Is a Dealing Range?

Evaluating swing high and swing low boundaries

Core Definition

A Dealing Range refers to the price range between a significant swing high and swing low that traders use to analyze market positioning. It helps identify whether price is trading in premium or discount relative to the current range.

Key Mechanics

1. The high and low of a major move form the boundaries of the dealing range.
2. The 50% equilibrium level divides the range into premium and discount zones.
3. Price above equilibrium is considered premium (expensive), while price below it is considered discount (cheap).

Execution Strategy

Traders often look for buying opportunities in discount and selling opportunities in premium. Understanding the dealing range helps traders align their entries with the overall market structure.