The Balanced Price Range (BPR) in the ICT trading style refers to a zone on the price chart where supply and demand have reached equilibrium.
This balance zone serves as a significant area in technical analysis and can be used to identify potential entry or exit points in the market.
BPR is often associated with price breakouts and retracements to these zones, offering trading opportunities.
Note: For easier identification of ICT Balanced Price Range (BPR), traders can use indicators developed by the TFlab team:
- BPR Indicator for MetaTrader 4
- BPR Indicator for MetaTrader 5
- BPR Indicator for TradingView
What is Balanced Price Range (BPR)?
The Balanced Price Range (BPR) is a concept derived from the Fair Value Gap (FVG). It refers to a price zone where two opposing Fair Value Gaps (FVGs) (one in an upward move and the other in a downward move) overlap.
This overlapping area is called BPR and serves as a high-probability reversal zone.
How to Identify Balanced Price Range (BPR)?
To identify BPR, traders must first determine the premium and discount zones on the price chart. Next, they should identify two Fair Value Gaps (FVGs) within these zones:
- One on the sell-side
- One on the buy-side
These two FVGs should be aligned horizontally and in opposite directions. The price area where these two FVGs overlap is identified as the Balanced Price Range (BPR).
Importance of Balanced Price Range (ICT BPR)
At first glance, BPR may seem like a regular Fair Value Gap (FVG). However, the key difference is that one of these FVGs breaks without a price reaction, while the other forms within the same price range where the first FVG was broken.
The overlap between these two FVGs creates a high-probability zone for trade entries. When the market retraces to this range, traders can enter trades with favorable risk-to-reward ratios.
Conclusion
The Balanced Price Range (BPR) is a fundamental concept in ICT trading, formed by the overlap of two opposing Fair Value Gaps (FVGs).
These zones serve as key market levels for entry and exit points. A BPR is confirmed when the market quickly passes through one Fair Value Gap (FVG) and another FVG forms within the same area.
