CPR Scenario and 2 days CPR relationship Analysis -

Here’s a detailed explanation of the CPR (Central Pivot Range) relationships :

1. Higher Value Relationship
Definition: Today’s entire CPR (from BC to TC) is completely above yesterday’s entire CPR.

Indicates: Strongly Bullish Bias

Today’s BC (Bottom Central) > Yesterday’s TC (Top Central)

Implies the market sentiment is much more bullish than the previous day.

Trading Insight: Look for long trades, especially if the opening price is above CPR.

2. Overlapping Higher Value Relationship
Definition: Today’s CPR is higher than yesterday’s, but partially overlaps with it.

Indicates: Moderate Bullish Bias

Pivot shifted up, but some overlap exists between the ranges.

Trading Insight: Bias is positive; confirm trade with open above CPR or price action.

3. Lower Value Relationship
Definition: Today’s entire CPR is completely below yesterday’s CPR.

Indicates: Strong Bearish Bias

Today’s TC < Yesterday’s BC

Trading Insight: Look for short trades, especially if opening is below CPR.

4. Overlapping Lower Value Relationship
Definition: Today’s CPR is lower than the previous day’s, with partial overlap.

Indicates: Moderate Bearish Bias

Pivot shifted down, but ranges still overlap partly.

Trading Insight: Initial bias negative, look for shorting opportunities.

5. Unchanged Value Relationship
Definition: Today’s CPR is virtually unchanged (locations very close) compared to yesterday’s CPR.

Indicates: Sideways or Potential Breakout Day

Range and pivot nearly the same.

Trading Insight: Watch for breakout trades if price emerges out of the range.

6. Outside Value Relationship
Definition: Today’s CPR engulfs or completely surrounds yesterday’s CPR.

Indicates: Range-bound/Sideways Bias

Today’s BC < Yesterday’s BC and Today’s TC > Yesterday’s TC.

Trading Insight: Expect sideways action, mean reversion trades, or range trading.

7. Inside Value Relationship
Definition: Today’s CPR is completely inside yesterday’s CPR.

Indicates: Breakout Expected

Both TC and BC are within yesterday’s TC and BC.

Trading Insight: Watch for sharp breakout moves; trade in the direction of the breakout.

How to Use These Relationships
Initial Bias: Where today’s CPR sits relative to yesterday’s gives a directional clue.

Confirmation: How today’s market opens relative to CPR adds confidence.

Strategy: Align your trades (long or short) with the dominant CPR relationship and price’s position relative to the CPR band.