Balanced Price Range

Balanced Price Range

The balanced price range (BPR) is the result of a sharp decline immediately after a sharp rise, or a sharp rise immediately after a sharp fall. What remains after this is essentially a double fair value gap, which can act as a magnet to attract prices before they continue to move in a higher or lower direction.

The balanced price range can sometimes signal the beginning of a market structure shift, and prices often tend to be retested and resistant/rejected in these areas.

- BPR (Balanced Price Range): A special segment that occurs when prices surge and then plunge immediately, or when prices plunge and then surge immediately.

- Of these, FVG: BPR appears in the form of overlapping two FVGs.

- MAGNET ROLE: BPR has the power to pull prices, so prices often return to the BPR segment.

- Possible Trend Shift: BPR Could Be a Sign That Market Trends May Change.

- Support/Resistance: The BPR interval can act as a strong support or resistance.
Explain with examples:

Let's say that the price suddenly skyrocketed due to a big boon. But soon after, the bad news bursts, and the price plunges to the level just before the surge. This surge and plunge immediately lead to the formation of BPR.

The price then returns back to the BPR segment, where it can resist and fall, or support and rise.

Key to:

BPR is a special section caused by rapid price fluctuations.
BPR acts as a magnet to attract prices and can act as a strong support/resistance interval. BPR can be a sign of a trend shift, so it should be observed carefully. In conclusion, BPR can be a useful clue for grasping the rapid volatility of the market and predicting future price movements. In particular, it is important to observe BPR with the possibility of a trend shift in mind.