SMC Term — Concept
What is PD Array?
Premium and Discount Array
PD Array — Premium and Discount Array
📚 Smart Money Concepts
📈 Forex & XAUUSD
🆓 Free Education
The PD Array (Premium and Discount Array) is a framework for understanding where in a price range to buy or sell. Premium zones sit above the 50% equilibrium of a range and are ideal for selling. Discount zones sit below the 50% equilibrium and are ideal for buying. The PD Array also includes a hierarchy of SMC levels: OB, FVG, Breaker, Mitigation Block, Rejection Block, IFVG, and Void — ordered from strongest to weakest.
How to Trade PD Array
Identify the current range: find the most recent swing high and swing low. Calculate the 50% equilibrium level. Price above 50% = premium (look to sell). Price below 50% = discount (look to buy). Then layer your POI analysis: look for OBs and FVGs in the discount zone for longs, and in the premium zone for shorts. Avoid buying at premium or selling at discount.
Real Example — XAUUSD
Example: XAUUSD sweeps from 3200 (low) to 3400 (high). Equilibrium = 3300. At 3250 you are in discount — look for bullish OBs and FVGs to go long. At 3360 you are in premium — look for bearish OBs and FVGs to go short. Avoid longs at 3370 or shorts at 3230.
Related SMC Terms
Frequently Asked Questions
What is the PD Array in SMC trading?
The PD Array (Premium and Discount Array) is a framework that divides any price range into premium (above 50% equilibrium) and discount (below 50%). In SMC, traders buy in discount zones and sell in premium zones for better value entries. The array also ranks POI types from most powerful (OB) to least powerful (Void).
How do you calculate the equilibrium level?
Equilibrium is the 50% midpoint of any significant price range. Identify the most recent major swing high and swing low, then calculate the midpoint: (High + Low) / 2. Price above this midpoint is premium, below is discount. You can use the TradingNX Fibonacci Calculator — the 0.5 level marks equilibrium.
What is the PD Array hierarchy?
From strongest to weakest: Order Block (OB), Fair Value Gap (FVG), Breaker Block, Mitigation Block, Rejection Block, Inverse Fair Value Gap (IFVG), and Void. Order Blocks and FVGs in the discount zone are the highest-probability long setups. Breakers and IFVGs provide strong but slightly lower confidence entries.
Ready to apply PD Array in your trading?
Use TradingNX free tools — live dashboard, calculators, trade journal and full SMC glossary.