Premium is the upper half of the current range, discount the lower one. The midpoint divides them, with a narrow band of equilibrium around it. All of this is built on one specific range, not on an arbitrary piece of chart.
How the range is built
The starting point is the swing structure's current direction.
In an uptrend the start is the strong low: the low the leg that broke structure upward set off from. The end is the highest high after it. In a downtrend it mirrors: the strong high and the lowest low after it.
So there is exactly one range and it updates itself: structure breaks, the strong low changes, the start moves, and every boundary is recomputed.
The boundaries inside
The midpoint — exactly half the range. Above it is premium, below it discount.
Equilibrium — the band from 47.5% to 52.5% of the range. While price is inside it, the position is called equilibrium rather than premium or discount: declaring a side within two tenths of a percent of the middle would be a precision that is not there.
OTE — the retracement band from 61.8% to 79% of the range, measured back from its end. For an up range that is the stretch below the high, for a down range the stretch above the low.
What "price is in premium" means
Exactly one thing: the last close is above the midpoint of the current range. It is a fact about position, like a mark on a ruler.
Position by itself does not make anything cheap or expensive "in fairness" — the markup holds no model of fair value. There is a segment and a point on it.
A provisional end
The range carries a flag: its end counts as provisional when it falls within the last three bars. Until the episode matures, the highest high may not be the final one, and the boundaries will shift.
What the markup does not claim
Neither premium, nor discount, nor OTE is a signal, and none of them says where price will go. The range describes a move already made and shows which part of it price currently sits in.