Take the high and low of the last 90 days. The midpoint is equilibrium. Prices in the upper half are in premium, because they are expensive relative to the recent range. Prices in the lower half are in discount.
Smart Money Concepts traders prefer to buy in discount during an uptrend and to sell in premium during a downtrend, because they get a better price with less distance to the invalidation point.
Pulse gives the most zone points to assets in an uptrend that have pulled back into discount, and the fewest to assets that are extended into premium. A weak asset bouncing into premium also scores low, since the bounce is often a place to sell, not to buy. The zone is worth up to 15 points.