You currently filter like this:

✔ Only take buys in discount

✔ Only take sells in premium

✔ Avoid mid-range setups

✔ Follow MSS/SMS structure shifts

This works in normal markets, but fails in high-momentum trends, because:

In strong trends, price does NOT return to discount.

It keeps delivering:

50% retracements
SMA retests
Fair Value Gap + SMA reactions
Continuations inside premium / discount

This is normal.

If you wait for deep discount → you miss the entire move.

✅ HOW SMA 100/200 SOLVES THIS

The SMAs give you a dynamic trend discount level instead of a fixed structural discount.

➤ On strong trends, the SMAs act as:

Dynamic support / resistance
Trend continuation zones
Momentum filters
Validation that a premium continuation is valid

This means:

Even if price is in structural premium,
if it’s above SMA 100 and 200 → it is still discounted relative to trend momentum.

🔥 THE SYSTEM YOU SHOULD USE

Here’s the framework:

1️⃣ Multi-Timeframe Trend Confirmation Using SMA 100/200

On Daily or 4H:

Bullish Trend if

Price is above SMA100
SMA100 is above SMA200
Both SMAs sloping upward
Price often bounces from them

📌 This tells you:
Premium at 1H/4H is not real premium — it’s momentum premium. You can buy it.

2️⃣ Trend Continuation Zones on 1H/4H

When trend is strongly up:

Valid 1H / 4H buy zones

SMA100
SMA200
FVG that aligns with an SMA
Breaker / flip zone sitting on an SMA
A shallow retracement (38.2–50%) instead of deep discount

These become your alternative “discount” in strong trends.

3️⃣ NEW ENTRY RULES (SOLVES YOUR PROBLEM)

✔ Rule A: If trend is strong → take the continuation even in premium

Criteria for strong trend:

Above SMA100 & SMA200
SMAs aligned and sloping
No close below SMA100 in last 10–20 candles

When this occurs:

You DO NOT need structural discount.
A premium continuation is valid.

Entry style:

Breaker blocks
FVG alignments
Retests near SMA100
Momentum MSS/SMS on 15m

This is exactly the trades you are missing.

✔ Rule B: Mid-range setups become valid when supported by SMA100/200

Your previous rule:

“Avoid mid-range trades”

This is correct but only when trend is weak.

In strong momentum:

Mid-range = trend continuation zone
because price never returns to extremes.

So instead of avoiding mid-range, you filter it like this:

Mid-range trade is valid if:

Price is ABOVE SMA100/200
It shows bullish MSS/SMS
It forms a continuation pattern (FVG/Breaker/CHoCH)
It aligns with trend momentum

✔ Rule C: Only require premium/discount when trend is weak

When SMAs are:

Flat
Entangled
Price chopping above/below them…
THEN your original rules apply:

Only buy discount → only sell premium.

This avoids range chop.

🔥 Example Workflow For You

You’re on 4H: Determine trend using SMA100/200

→ Strong bullish trend?
Then on 1H:

Ignore structural premium
Look for continuation signals at SMA100
Accept mid-range setups
Target new HH
Use 15m to refine entry

You’re on 4H and SMAs are flat?

→ Follow your old rules strictly
→ Only take discount/premium extremes
→ Avoid mid-range

🎯 CONCLUSION — HOW SMAs HELP YOU

🔵 They help you stop expecting deep discount in strong trends.

🔵 They allow you to take premium continuation trades without fear.

🔵 They validate mid-range setups that are normally unsafe.

🔵 They filter continuations from chop vs powerful legs.

Your strategy becomes:

Weak trend → use premium/discount logic.
Strong trend → use SMA100/200 dynamic pullback logic.

This is how pro traders catch continuation moves without missing them.

✅ CASE STUDY: CADJPY 4H — Why This Continuation Worked Even in Premium

Table of Contents

⭐ Key Observations:

Price is above SMA100 (orange) and SMA200 (red)
Both SMAs are sloping upward
Every retracement since mid-Nov has respected SMA100 or SMA200
Your “deep discount” zone is FAR below price
But price did NOT return there
Instead it used a shallow SMA100 retest + breaker + bullish FVG
This created the strong rally you highlighted in green
STRUCTURALLY this area is “premium”, but TREND-wise it is discounted

This is EXACTLY where many traders miss entries.

🔍 STEP-BY-STEP BREAKDOWN OF THIS EXACT CONTINUATION TRADE

1️⃣ Trend Context (HTF)

On 4H:

SMA100 above SMA200
Price above both
Higher highs and higher lows
Each correction gets shallower

→ This is a strong trend environment.
→ Deep discount retracements are no longer needed.

2️⃣ The Key Pivot Low You Marked

You highlighted a low that sits right on:

SMA100
A rising trendline
A bullish breaker block
The lower boundary of the swing FVG

Even though it is in a premium zone relative to the swing range,
it is in discount relative to trend momentum.

This is the entire secret.

3️⃣ Why Price Did NOT Return to “Deep Discount”

In a powerful trend:

Deep discount = inefficiency behind trend
It becomes inefficient to return
Smart money defends the trend earlier
Algorithms use SMA100 + FVG alignments as continuation zones

This is why your deep discount zone was ignored.

4️⃣ The Exact Entry Zone

Look at your green highlighted entry:

Price dips into SMA100
Breaks market structure to the upside
Returns for FVG + breaker retest
SMA slopes confirm continuation

Even though structurally premium → this is the TRUE buy zone.

🧠 HOW YOU SHOULD HAVE READ THIS CHART (THE NEW LOGIC)

Here’s how you should interpret this next time:

✔ The moment price stays above SMA100/200 and respects them →

You NO LONGER require deep discount for entries.

✔ Your “premium” rejection zones become continuation zones

Because the trend is too strong.

✔ Mid-range setups become legitimate

Because price is respecting SMAs as trend structure.

🎯 THE REAL TAKEAWAY FROM THIS CASE STUDY

🔵 STRUCTURE suggested premium → avoid buys

🔵 TREND suggested discount → take buys

✔ Trend won.

Your old filtering rules forced you to miss this move.

The SMAs would have told you in advance:

“This is a strong trend.
Expect shallow pullbacks.
Stop waiting for deep discount.”

🧩 Apply the Rule to This Chart

Based on your chart:

✔ SMA100 = dynamic discount

✔ SMA200 = deeper dynamic discount

✔ Deep discount box = obsolete during strong trend

✔ Mid-range = usable continuation zone

Your actual entry should have been:

**Buy the retest of SMA100 + breaker + FVG

→ NOT wait for the deep discount.**

And the green rally is the exact proof.