Month 1 · Lesson 5

Equilibrium Vs. Premium

Selling is not the mirror of buying at EQ — sell from 62% or higher, in premium.

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Everything here is diametrically opposed to equilibrium vs. discount. A premium means price is at a really high level relative to its current trading range — you don't need overbought/oversold indicators to classify it; you just need the current range, and anything above the 50% level starts going into premium.

Selling Rules

Rules

Anchor the fib from the high down to the low of the impulse swing. After a swing low forms (3 candles), watch the 4th candle show willingness to go higher — then wait for the retracement up.
Price must at least touch equilibrium — but 50% alone is not where ICT sells. Other disciplines sell the 50; sell in the 62–79% zone (OTE for sells), at a premium.
If price only reaches EQ and immediately sells off — that's a missed opportunity. Let those price legs go without you.
Only fib pure, clear, discernible swings — if it looks sloppy or questionable, skip it.
Keep re-anchoring to the newest high→low ranges as they form — anchoring to the wrong swing hides the real OTE.

Turtle Soup Sells

When price goes above equilibrium and takes out an old high at the same time — running the stops while in premium — that's really good in terms of probabilities: a turtle soup sell. Target the lows already established in the marketplace: take first profit below the first low, then the next low (aim ~10 pips below a range low, plus a few pips for spread).

Stop-outs happenSometimes it runs right through your OTE and takes your stop — even twice in a row. Do not try to avoid it; it's going to happen. If you're stopped, look for the next old high to be breached while still above 50% — that's the next turtle soup sell scenario.

Key ideaYou don't need a bias — you need to know how to trade inside a range. Ranges are always there, whether the market is trending, consolidating or reversing, and you don't need a breakout to make money. If the market is in a long consolidation, this is your go-to: trade turtle soups, or premium and discount. Professional traders sell at premium prices — you own a car, you don't sell it at a discount. And there's no better place to sell than above an old high, because there are willing buyers right there in the form of buy stops.

Even on the daily chart these setups run 70–100+ pips — this is for those who can't day trade. The concepts are universal across timeframes.