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Inversion FVG and Balanced Price Range (BPR)

Last Updated: 30 Sep, 2026

Price-action traders on Nifty, Bank Nifty and stocks often use gaps in price to find entries. This tutorial explains two related concepts, Inversion FVG and BPR, in simple terms.

First, What Is a Fair Value Gap (FVG)?

An FVG is a three-candle pattern where the middle candle moves so fast that it leaves an imbalance.

  • Bullish FVG: a gap between the high of candle 1 and the low of candle 3.
  • Bearish FVG: a gap between the low of candle 1 and the high of candle 3.
  • Traders expect price to return to this zone and react.

What Is an Inversion FVG?

An inversion fair value gap (IFVG) forms when price closes fully through an FVG instead of respecting it. The zone then flips its role.

Original FVG  What Price Does  It Becomes 
Bullish FVG (support)  Closes below the zone  Resistance (bearish IFVG) 
Bearish FVG (resistance)  Closes above the zone  Support (bullish IFVG) 

Key idea: a failed zone is not useless. It often turns into a strong reversal area.

What Is a Balanced Price Range (BPR)?

A BPR forms when a bullish FVG and a bearish FVG overlap. Price sweeps up and down through the same area, and the overlapping portion is the BPR.

  • It shows where buyers and sellers were both active.
  • The overlap zone acts as a strong support or resistance area.
  • Price often reacts sharply when it returns to this zone.

IFVG vs BPR at a Glance

Feature  Inversion FVG  Balanced Price Range 
Formation  One FVG fails and flips  Two opposite FVGs overlap 
Signal  Change in direction  Strong reaction zone 
Zone  The original gap  Only the overlapping area 
Best used for  Reversal confirmation  Precise entry and exit levels 

Simple Example (Nifty 50, 5-Minute Chart)

The numbers below are only illustrative.

  1. A bullish FVG forms between 24,400 and 24,420.
  2. Price falls and a candle closes below 24,400, so the FVG has failed.
  3. Price pulls back to the 24,400–24,420 zone and gets rejected.
  4. This is a bearish inversion fair value gap, and the trader looks for a short setup.

How to Trade It: Step by Step

  1. Mark the trend on a higher timeframe such as 15-minute or 1-hour.
  2. Spot a clear FVG and wait for a candle body to close through it.
  3. Wait for a retest of the flipped zone. Do not chase the move.
  4. Look for confirmation such as a rejection candle or a BPR forming in the same area.
  5. Place your stop-loss just beyond the zone.
  6. Target the nearest swing high or low, aiming for at least 1:2 risk-reward.

Common Mistakes to Avoid

  • Treating a wick through the zone as an inversion. Wait for a candle close.
  • Trading every gap. Focus on gaps that form with strong momentum.
  • Ignoring the higher-timeframe trend.
  • Entering without a stop-loss.

Tips for Indian Markets

  • The NSE trades from 9:15 AM to 3:30 PM IST. Avoid the first 15 minutes, when volatility is high.
  • Trade around news events such as RBI policy, Union Budget and quarterly results with extra caution.
  • Risk only 1–2% of your capital per trade. For example, on ₹1,00,000, risk no more than ₹1,000–₹2,000.
  • Practice on a paper-trading account before using real money.
  • Use these concepts together with volume, support and resistance, and market structure rather than alone.

Quick Summary

  • An FVG is a price imbalance left by fast movement.
  • An Inversion FVG is a failed FVG that flips its role.
  • A BPR is the overlap of two opposite FVGs and acts as a strong reaction zone.
  • Wait for confirmation, manage risk and stay patient.