Points of Interest (POI)/
Balanced Price Range (BPR)
TL;DR
A Balanced Price Range (BPR) forms when two opposing Fair Value Gaps — one bullish and one bearish — overlap in the same price zone within a short time window. The overlapping region represents a 'balanced' area where both buy-side and sell-side imbalances have been created, making it a high-probability support or resistance zone when retested.
How It Works
- 1
A bullish FVG forms during an upswing — a three-candle gap where the low of candle 3 is above the high of candle 1, creating a bullish imbalance zone.
- 2
Within a limited number of candles (typically ≤15), a bearish FVG forms during a downswing — now a gap in the opposite direction overlaps with the earlier bullish FVG.
- 3
The overlap zone between both FVGs is the Balanced Price Range — the price area where both bulls and bears left unfilled orders.
- 4
The BPR side is determined by the newer FVG: if the newer FVG is bullish, the BPR acts as support; if bearish, it acts as resistance.
- 5
BPR strength increases with larger overlap ratio and closer proximity between the two FVGs. The system scores each BPR based on these factors.
- 6
When price returns to the BPR zone, it acts as a high-conviction reaction point — Smart Money treats it as 'fair value' where equilibrium was last established.
LiquidMind detects BPRs automatically by tracking active FVGs and checking for opposite-direction FVG formation within a configurable window. The system calculates BPR strength using overlap ratio (60% weight) and proximity factor (40% weight), normalised to a 0–100 scale. BPRs are invalidated when the last candle closes beyond the zone boundary (bullish BPR broken if close < bottom, bearish BPR broken if close > top). Active BPRs are stored as POIs with the same lifecycle as other POI types.