Balanced Price Range (BPR)

The Balanced Price Range (BPR) indicator identifies and visualizes overlapping vertical areas between recent bullish and bearish Fair Value Gaps (FVG) to highlight key support and resistance zones.

Usage

The Usage section describes how the script can be used to identify high-confluence zones where market inefficiency has been "rebalanced" by opposing price movements. Traders can use the BPR as a refined entry or exit zone, as these areas often act as significant magnets or pivots for price action.

• Bullish BPR: Occurs when a bearish FVG is immediately followed and overlapped by a bullish FVG. This suggests a rapid shift in sentiment and potential support.
• Bearish BPR: Occurs when a bullish FVG is followed and overlapped by a bearish FVG, indicating a swift rejection and potential resistance.
• Filtering: Use the "BPR Threshold" to ignore insignificant price gaps and focus on ranges that meet a specific minimum tick or point value.
• Time Sensitivity: The "Bars to Look Back" setting allows users to define how closely the two opposing gaps must appear to be considered a valid Balanced Price Range.

Details

The BPR is often described as a "double Fair Value Gap." Technically, it represents a price range that has been traded through twice—once by an aggressive move in one direction and again by an aggressive move in the opposite direction—leaving behind a consolidated zone of liquidity.

The script calculates the intersection of the two gaps. If "Only Clean BPR" is enabled, the indicator verifies that price did not trade back into the identified range during the interval between the two Fair Value Gaps, ensuring the zone remains "untested" until the BPR is fully formed. Once formed, boxes are extended until price closes beyond the zone boundaries or until a new BPR replaces the old one if the "Delete Old BPR" setting is active.

Settings

• BPR Threshold: Sets the minimum vertical range required for a BPR to be plotted.
• Bars to Look Back for BPR: Defines the maximum number of bars allowed between the initial FVG and the secondary FVG that completes the BPR.
• Only Clean BPR: When enabled, filters out BPRs where price action intruded into the range before the pattern was completed.
• Delete Old BPR: If checked, the indicator removes invalidated or historical BPRs from the chart, displaying only the most recent active zones.
• Bearish BPR Color: Customizes the visual appearance of bearish BPR boxes.
• Bullish BPR Color: Customizes the visual appearance of bullish BPR boxes.

FAQ

How do I use the Balanced Price Range (BPR) indicator? You can use the BPR to find high-probability reversal or continuation zones where bullish and bearish Fair Value Gaps overlap.

What makes a BPR different from a standard FVG? A standard FVG represents a single-sided inefficiency, whereas a BPR represents a zone where two opposing inefficiencies overlap, creating a "balanced" but highly reactive price level.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.