What is Balance price range?
- BPR refers to a specific area in price history where there has been a significant movement to the upside and a significant movement to the downside.
- This can be used as a key level of support and resistance for traders and investors to watch.
- The Balance Price Range (BPR) serves as critical support and resistance.
- When the price reaches the upper or lower BPR bounds, it often rebounds.
- Such rebounds indicate possible buying or selling chances.
To properly mark BPR, arrangements are made in different steps as mentioned below.
Bullish BPR Example:-
Step 1 : Mark SIBI (FVG)
Step 2 : Mark BISI (FVG)
Step 3 : After mark BPR execution
There are two types of Balanced Price Ranges (BPR): Bullish and Bearish BPRs, which can occur on all timeframes.
In this thread, I will explain both types, provide examples, and offer guidance on how to use them for both short-term and long-term trading.
Bullish BPR (+BPR)
- BPR+ occurs when there's an aggressive move down immediately followed by an aggressive move up.
- The move down creates a SIBI FVG, and the move up creates a BISI FVG, which overlaps the SIBI FVG.
- It becomes a BPR once price retests where the FVGs overlap.
Bearish BPR (-BPR)
- BPR- occurs when there's an aggressive move up immediately followed by an aggressive move down.
- The move up creates a BISI FVG, and the move down creates a SIBI FVG, which overlaps the BISI FVG.
- It becomes a BPR once price retests where the FVGs overlap.
ICT BPR MODEL :
- Wait for price to hit a higher time frame (HTF) resistance level.
- Wait for the price to close below the BPR.
- When the next candle closes below the BPR, anticipate a rapid shift from Buy Side to Sell Side.
- Aim for a profit of at least 2R.
What is Standard deviation projections (STDV)?
Standard deviation projections help identify possible trade targets by measuring price movement volatility.
For an initial expansion move, potential targets are often in the -2 to -2.5 STDV and maximum retreatment to -4 STDV.
Use standard deviation to find possible trade targets.
Watch for signs of price manipulation, like short-term highs/lows and breakouts.