The Central Pivot Range (CPR)

The Central Pivot Range (CPR) is a popular technical analysis indicator used in trading to identify potential support and resistance levels. It consists of three key levels: the Pivot Point (PP), the Top Central Pivot (TC) or Upper Central Pivot, and the Bottom Central Pivot (BC) or Lower Central Pivot. The CPR helps traders gauge market sentiment and make informed trading decisions based on the relative position of price action to these levels.

Calculation of CPR Levels:

Interpretation of CPR:

- Above CPR: If the current price is above the CPR, it indicates a bullish sentiment.

- Below CPR: If the current price is below the CPR, it indicates a bearish sentiment.

- Within CPR: If the current price is within the CPR range, it suggests a sideways or range-bound market.

Trading Strategies Using CPR:

1. Breakout Strategy:

   - Bullish Breakout: Enter long positions when the price breaks above the TC level.

   - Bearish Breakout: Enter short positions when the price breaks below the BC level.

2. Reversal Strategy:

   - Look for price reversals when the price approaches either the TC or BC levels.

3. Support and Resistance:

   - Use the PP, TC, and BC levels as potential support and resistance zones.

The Central Pivot Range (CPR) is a valuable tool for traders to determine potential support and resistance levels and gauge market sentiment. By incorporating CPR into their trading strategies, traders can make more informed decisions about entry and exit points in the market.


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