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Central Pivot Range (CPR)

The Central Pivot Range (CPR) is a technical indicator used by price action traders. It consists of the top central pivot (TC), bottom central pivot (BC), and central pivot point (PIVOT), which are calculated based on the high, low, and close of previous prices. A narrow CPR indicates a trending or volatile day, while a wide CPR suggests avoidance. The CPR helps identify support/resistance levels and trading opportunities based on where the price opens relative to the CPR levels. A "virgin CPR" occurs when the price doesn't touch the CPR, and can then act as future support/resistance.

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Vinay Kumar
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939 views

Central Pivot Range (CPR)

The Central Pivot Range (CPR) is a technical indicator used by price action traders. It consists of the top central pivot (TC), bottom central pivot (BC), and central pivot point (PIVOT), which are calculated based on the high, low, and close of previous prices. A narrow CPR indicates a trending or volatile day, while a wide CPR suggests avoidance. The CPR helps identify support/resistance levels and trading opportunities based on where the price opens relative to the CPR levels. A "virgin CPR" occurs when the price doesn't touch the CPR, and can then act as future support/resistance.

Uploaded by

Vinay Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CENTRAL PIVOT RANGE(CPR)

What is CPR?

 It is most important technical indicator used by price action traders


 FRANK OCHOA introduced this CPR which is derived from pivots.
 The CPR consist of 3 components:
1. Top central pivot (TC)
2. Bottom central pivot (BC)
3. Central pivot point (PIVOT)

 Helps to foresee the moment in stock price and to predict the trend and also provide major
support and resistance
FORMULAE?

 pivot = (high+low+close)/3
 BC = (high+low)/2
 TC= (pivot-bc)+pivot
 S1 = (2*pivot)-high
 R1 = (2*pivot)-low
 S2 = pivot-(high-low)
 R2 = pivot+(high-low)
DETAILS
TYPES OF CPR

 NARROW CPR
 WIDE CPR

Narrow cpr?
If TC,BC and pivot are close to each other we call as
narrow cpr
Wide cpr?
If they are away we call as wide cpr
Charectaristics of cpr?

 Whenever there is a narrow cpr it indicates trending day or volatile day


 If there is no trending or volatile on that narrow cpr day, next day will
be trending day.
 If cpr’s are forming higher highs we call it as trending market and vice
versa.
 It helps in knowing the type of trend and direction of price.
 Whenever the price is above cpr look for buying opportunity and
whenever the price is below cpr look for selling opportunity.
Narrow cpr(for intraday take daily cpr)
VIRGIN CPR

 If the price doesn’t touch the cpr on a particular day we call that cpr as a VIRGIN cpr.
 That virgin cpr can act as a support resistance for the next 2 to 3 days.It means whenever the
price comes to that point it start reversing.
VIRGIN CPR
SCALPING STRATEGIES TRY TO AVOID TRADING ON WIDE CPR DAY

 CASE 1:When price open above R1(Three 5 min candles above R1)
In this scenario we always looks for buying opportunity.We take trade after a small pull back by R1 as SL.
 CASE 2:When price opens below S1 we look for selling opportunity.(consider 5min three candles)
Here we short after a small pullback(near to s1) by keeping S1 as stoploss.(red colour line S1)
 CASE 3:when price opens in between cpr and R1
Here we take buy call when price crosses the R1 and keep stoploss as R1.
 CASE 4:When price opens in between cpr and S1
Here we look for selling opportunity when price crosses s1 we sell by keeping S1 as stoploss
 CASE 5:When price opens in between cpr levels we expect that day to be as a trading range.
Unless it crosses either R1 or S1 levels we don’t take trade.

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