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Take the most recent significant swing high and low, draw the range, and split it at 50 percent. Above is premium, below is discount. The idea is that in a bullish context you want to buy in discount, and in a bearish context you want to sell in premium. It sounds too basic to matter, but it fixed one of my worst habits: buying breakouts near the top of a range because the candle looked strong. When I applied the filter strictly, a large fraction of my losing longs turned out to be entries in premium. It does not predict direction, it simply keeps the price you pay in context. I also use it to judge whether a pullback is deep enough. A shallow pullback to 30 percent in a strong trend can be fine, but a pullback that fails to reach discount in a bullish structure often leads to chasing. Try tagging your last twenty trades as premium or discount entries and see what the numbers say.

Simple filter, big effect, agreed. The weak point is picking the range: on M5 the swing you choose can flip a price from premium to discount. I anchor the range to the swing that produced the latest H1 break of structure and leave it alone until a new break happens. Otherwise it is too easy to redraw it so the entry you already want sits in discount.