Smart Money Concept — Venom Model BPR (Balanced Price Range): A Guide for Traders
What is Balanced Price Range?
BPR is a price action (SMC/ICT) analysis tool. Is formed by the intersection of two Fair Value Gap (FVG) zones - regions where the trend changes abruptly, creating an imbalance. The overlap of this zone indicates the restoration of balance in the market, making BPR a key zone for determining trade entry points.
How to determine BPR?
- Bullish BPR: Occurs when the bullish FVG (created by rising prices) crosses the bearish FVG (created by falling prices) from bottom to top. This zone serves as a potential buying point.
- Bearish BPR: Occurs when the bearish FVG crosses the bullish FVG, signaling selling opportunities.
BPR Long Trade Example:
In an uptrend, the price often rolls back to the BPR formed in the discount zone. Entry is made when the price returns to the BPR, the stop loss is placed below the zone, and the take profit is set with a risk/reward ratio of 1:2.
BPR Short Trade Example:
In a downtrend, the bearish BPR located in the premium zone becomes a selling point. The stop loss is fixed above the BPR, maintaining the ratio of 1:2.
BPR vs. Inversion Fair Value Gap (IFVG)
- A BPR is the intersection of two opposite FVGs.
- An IFVG occurs when an FVG is "invalidated" (e.g. price closes or touches the top/bottom of the FVG).
- Not all IFVGs are BPRs, but all BPRs can be considered IFVGs.
What timeframes does BPR work on?
BPR is effective on any timeframe, but it is recommended to consider the trend of higher timeframes (H1 and above) to filter out false signals.
Key Takeaways
Use BPR as an entry zone in the direction of the main trend.
Combine with volume and support/resistance analysis for increased accuracy.
Avoid trading against the trend, even if BPR looks attractive.
This approach allows you to turn market imbalances into structured trading opportunities, minimizing risks and increasing the probability of profitable trades.
For automatic search and drawing of BPR/FVG patterns use my indicator:
MT4 — SMC Venom Model BPR
MT5 — SMC Venom Model BPR
Good luck in trading!
