Balanced Price Range (BPR)

A Balanced Price Range (BPR) is a price action concept used in Smart Money Concepts (SMC) and ICT trading methodology. It forms when a bullish Fair Value Gap (FVG) and a bearish Fair Value Gap (FVG) overlap in the same price area, creating a zone where buying and selling activity has become balanced.How a BPR FormsA BPR typically develops during periods of strong volatility and consists of two stages:

Initial Imbalance

Aggressive Reversal

The overlapping portion of these two gaps becomes the Balanced Price Range.How Traders Use BPRsMany traders view BPRs as high-probability areas for entries because they often attract future price reactions. Entry Zone: Traders commonly focus on the smaller of the two overlapping gaps as the most precise entry area.
Retracement Entry: After the imbalance is created, traders wait for price to return to the BPR before entering a trade.
Stop Loss Placement: Stops are typically placed beyond the swing high for short trades or beyond the swing low for long trades.

Types of BPRsBullish BPR Often appears as a sharp "V" formation on the chart.
Suggests strong buying pressure after a rapid decline.
Commonly viewed as a support area and potential long-entry zone.

Bearish BPR Often appears as an inverted "V" or "A" formation.
Indicates strong selling pressure after a rapid rally.
Commonly viewed as a resistance area and potential short-entry zone.

Key IdeaA Balanced Price Range represents an area where opposing market imbalances have overlapped and partially offset each other. Because these zones frequently attract future price reactions, traders often monitor them as potential support, resistance, continuation, or reversal areas.