A balanced price range (BPR) forms when a fair value gap in one direction is followed by a fair value gap in the opposite direction at an overlapping price. Price moved through the same area quickly both ways. ICT treats the overlap as an especially sensitive zone.
How a BPR forms
- Price drops sharply, leaving a bearish FVG.
- Price then rallies sharply back through the same area, leaving a bullish FVG.
- The price range where the two gaps overlap is the BPR.
Why it matters
The area has been "rebalanced" in both directions, and the most recent displacement (here, the rally) tells you which side won. On a return to the BPR, ICT traders expect price to respect it in the direction of that latest move: support after a bullish BPR, resistance after a bearish one.
Using a BPR
- Only mark the overlap, not the whole of both gaps.
- Trade it in the direction of the second, more recent displacement.
- Combine it with the usual context: higher-timeframe bias, premium or discount, and a liquidity target.
- A body close through the far side of the BPR invalidates it.
Key takeaways
- A balanced price range is the overlap between a fair value gap and an opposite fair value gap.
- It forms when price moves quickly through the same area in both directions.
- Trade it in the direction of the most recent displacement.
- Mark only the overlap, and treat a close through it as invalidation.