what is pd array in trading

 A PD Array (Premium and Discount Array) in trading, specifically within the Inner Circle Trader (ICT) methodology, is a framework of institutional price reference points used to identify high-probability zones for buying in discount (below equilibrium) or selling in premium (above equilibrium) areas. It acts as a checklist for mapping smart money movement and predicting market reversals. 

Key Components of a PD Array (Ranked by Importance):

• Old Highs/Lows: Former swing points holding liquidity.
• Rejection Blocks: Areas where wicks indicate heavy rejection.
• Order Blocks
   (OB):
   Specific candles representing institutional buying/selling
  .
Fair Value Gaps (FVG) / Imbalances: Price gaps indicating, in this case, a, speedy movement where only one side of the market was traded.
Liquidity Voids: Areas of rapid price movement with imbalanced volume.
Breaker Blocks: Failed order blocks that turn into support/resistance.
Mitigation Blocks: Similar to breakers, used to mitigate losses at lower highs/higher lows. 

How to Use PD Arrays:

1. Define the Range: Identify a significant dealing range from a high to a low and find the 50% equilibrium level.
2. Identify Zones: Look for the above components within the premium (above 50%) or discount (below 50%) zones.
3. Anticipate Reactions: Use these zones to anticipate where the price will reverse or consolidate.
4. Confirm Entry: Wait for price action to hit a PD array on a higher timeframe, then check lower timeframes (e.g., 1m or 5m) for a market structure shift to enter. 

PD Arrays act as magnets, with price often traveling from one PD array to another, such as from an old high to a fair value gap