Balanced Price Range (BPR) Explained: How to Identify and Trade It

A Balanced Price Range (BPR) is a trading concept used by price action traders (also known as SMC or ICT Traders). A Balanced Price Range is an overlapping area between two Fair Value Gaps (FVGs). These areas can be used as entry points during market pullbacks. A bullish BPR can be used to find long trade entry opportunities, while a bearish BPR can be used to find short trade entry opportunities. In this guide you will learn how to identify and trade a Balanced Price Range.

What is a Balanced Price Range (BPR)?

A Balanced Price Range is an overlapping area between two Fair Value Gaps (FVGs). FVGs represent market imbalances created by rapid price moves, and when these gaps are filled, the market becomes balanced. These areas often attract significant activity, making them high-probability areas for market reversals, continuations, or breakouts.

How to Identify a Balanced Price Range (BPR)

To identify a Balanced Price Range (BPR), look for a Fair Value Gap (FVG) that overlaps an opposite FVG. The overlapping area between the two FVGs becomes the BPR.

How to Identify a Bullish BPR

To identify a bullish BPR, look for a bullish FVG that overlaps a bearish FVG. The area of the two overlapping FVGs is the bullish Balanced Price Range.

How to Identify a Bearish BPR

To identify a bearish BPR, look for a bearish FVG that overlaps a bullish FVG. The area of the two overlapping FVGs is the bearish Balanced Price Range.

How to Trade a Balanced Price Range (BPR)

A Balanced Price Range (BPR) should be used as an area for entries in the market during trend pullbacks. When price is in an uptrend, a bullish BPR can be used as an entry point for a long trade. When price is in a downtrend, a bearish BPR can be used as an entry point for a short trade.

BPR Long Trade Example

In this example, a bullish BPR forms inside of a discount zone. Once price retraces to the BPR, take a long entry, setting your stop loss below the BPR with a 1:2 risk-to-reward ratio.

BPR Short Trade Example

In this example, a bearish BPR forms inside of a premium zone. Once price retraces to the BPR, take a short entry, setting your stop loss above the BPR with a 1:2 risk-to-reward ratio.

Balanced Price Range vs. Inversion Fair Value Gap

The main difference between an Inversion Fair Value Gap (IFVG) and a Balanced Price Range (BPR) is that an IFVG forms when an FVG is invalidated by a candle wick or close. However, a Balanced Price Range forms when an FVG overlaps an opposite FVG. Thus, all BPRs can be considered as IFVGs, but not all IFVGs can be considered a BPR.