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Centralpivotrange

CPR by NKDCentral Pivot Range (CPR) Trading Strategy: The Central Pivot Range (CPR) is a widely-used tool in technical analysis, helping traders pinpoint potential support and resistance levels in the market. By using the CPR effectively, traders can better gauge market trends and determine favorable entry and exit points. This guide explores how the CPR works, outlines its calculation, and describes how traders can enhance their strategies using an extended 10-line version of CPR. What Really Central Pivot Range (CPR) is? At its core, the CPR consists of three key lines: Pivot Point (PP) – The central line, calculated as the average of the previous day’s high, low, and closing prices. Upper Range (R1) – Positioned above the Pivot Point, acting as a potential ceiling where price may face resistance. Lower Range (S1) – Found below the Pivot Point, serving as a potential floor where price might find support. Advanced traders often expand on the traditional three-line CPR by adding extra levels above and below the pivot, creating up to a 10-line system. This extended CPR allows for a more nuanced understanding of the market and helps identify more detailed trading opportunities. Applying CPR for Trading Success 1. How CPR is Calculation The CPR relies on the previous day's high (H), low (L), and close (C) prices to create its structure: Pivot Point (PP) = (H + L + C) / 3 First Resistance (R1) = (2 * PP) - L First Support (S1) = (2 * PP) - H Additional resistance levels (R2, R3) and support levels (S2, S3) are calculated by adding or subtracting multiples of the previous day’s price range (H - L) from the Pivot Point. 2. Recognizing the Market Trend To effectively trade using CPR, it’s essential to first determine whether the market is trending up (bullish) or down (bearish). In an upward-trending market, traders focus on buying at support levels, while in a downward market, they look to sell near resistance. 3. Finding Ideal Entry Points Traders often look to enter trades when price approaches key levels within the CPR range. Support levels (S1, S2) offer buying opportunities, while resistance levels (R1, R2) provide selling opportunities. These points are considered potential reversal zones, where price may bounce or reverse direction. 4. Managing Risk with Stop-Loss Orders Proper risk management is crucial in any trading strategy. A stop-loss should be set slightly beyond the support level for buy positions and above the resistance level for sell positions, ensuring that losses are contained if the market moves against the trader’s position. 5. Determining Profit Targets Profit targets are typically set based on the distance between entry points and the next support or resistance level. Many traders apply a risk-reward ratio, aiming for larger potential profits compared to the potential losses. However, if the next resistance and support level is far then middle levels are used for targets (i.e. 50% of R1 and R2) 6. Confirmation Through Other Indicators While CPR provides strong support and resistance levels, traders often use additional indicators to confirm potential trade setups. Indicators such as moving averages can help validate the signals provided by the CPR. 7. Monitoring Price Action At CPR Levels Constantly monitoring price movement near CPR levels is essential. If the price fails to break through a resistance level (R1) or holds firm at support (S1), it can offer cues on when to exit or adjust a trade. However, a strong price break past these levels often signals a continued trend. 8. Trading Breakouts with CPR When the price breaks above resistance or below support with strong momentum, it may signal a potential breakout. Traders can capitalize on these movements by entering positions in the direction of the breakout, ideally confirmed by volume or other technical indicators. 9. Adapting to Changing Market Conditions CPR should be used in the context of broader market influences, such as economic reports, news events, or geopolitical shifts. These factors can dramatically affect market direction and how price reacts to CPR levels, making it important to stay informed about external market conditions. 10. Practice and Backtesting for Improvements Like any trading tool, the CPR requires practice. Traders are encouraged to backtest their strategies on historical price data to get a better sense of how CPR works in different market environments. Continuous analysis and practice help improve decision-making and strategy refinement. The Advantages of Using a 10-Line CPR System An extended 10-line CPR system—comprising up to five resistance and five support levels—provides more granular control and insight into market movements. This expanded view helps traders better gauge trends and identify more opportunities for entry and exit. Key benefits include: R2, S2 Levels: These act as secondary resistance or support zones, giving traders additional opportunities to refine their trade entries and exits. R3, S3 Levels: Provide an even wider range for identifying reversals or trend continuations in more volatile markets. Flexibility: The broader range of levels allows traders to adapt to changing market conditions and make more precise decisions based on market momentum. So in Essential: The Central Pivot Range is a valuable tool for traders looking to identify critical price levels in the market. By providing a clear framework for identifying potential support and resistance zones, it helps traders make informed decisions about entering and exiting trades. However, it’s important to combine CPR with sound risk management and additional confirmation through other technical indicators for the best results. Although no trading tool guarantees success, the CPR, when used effectively and combined with practice, can significantly enhance a trader’s ability to navigate market fluctuations.
Pine Script® Indikator
von nikhilkdwivedi
8
Pivot Points with MID LevelsThis indicator shows the Standard Pivot Points level based on daily values that can act as support and resistance. It is used by a variety of traders around the world. You can select which time frame Pivot Point Levels you'd like. Daily, weekly etc... Perfect for swing trading or day trading. Pivot Points- Shows 3 levels of resistance, the Pivot Point and 3 levels of support (R3, R2, R1, PIVOT POINT, S1, S2, S3 MID Levels- The MID levels are 50% retracement from the pivot point level above it and below Example- R3, MID, R2, MID, R1, MID, PIVOT POINT, MID, S1, MID, S2, MID, S3 With this indicator you will also have the option to show the Previous days High and Low that are also important levels. On gap up/down days it is always interesting to see if price will close the gap, hence the important level to note. PDH= Previous Days High PDL= Previous Days Low I have added a feature that you can now select specific color to each level and the line style for each level to help understand which levels are being show by personal needs. Happy Trading
Pine Script® Indikator
von Sergioramos1987
15
CPR - Central Pivot Range (by Alex L.)CPR or Central Pivot Range is a tool for identifying a trend, its volatility and its future targets for the price levels (in up or down directions). What this indicator offers: - Main purpose of this indicator is to display levels of support/resistance in a given trend as potentially good levels of entering into position or existing from a position. Entry levels are RED, resistance levels are in GREEN. - You have the ability to view daily, weekly, monthly pivot levels, depending on what kind of trader you are. - Unique to this indicator - you have the ability to view YEARLY pivot levels. - Unique to this indicator - you have the "Pivots History" option to either show all history or just the recent piriod to make your chart clean of "noise". - Unique to this indicator - you can view "future" pivot levels based on current price. - You have the ability to view "future pivots" which can be useful as entry or exit levels for the current trend. - You have the ability to view one, two, three or four pivor levels concurrently depending on how much information you want on your chart. - You have the option to use "Compact View" to further reduce "noise" and make your chart event more clean. - Open source. Some guidelines: - When current Central Pivot Range is higher than previous Central Pivot Range then the stock is in an uptrend and vice versa. - Wide Central Pivot Range usually means the stock is in a "sideways trend" and volatility is low. - Tight Central Pivot Range usually means the stock has a very low volatility and is about to explode (up or down). Switching to a higher timeframe can often give hints to what direction the stock is likely to go. Default settings: - Pivot Levels : "Two Pivot Levels" - Filter/Hide Pivots: "Hide Pivot+BC+TC" - Pivots History: "Few Months Back" 'V' Show Monthly Pivots 'V' Show Future Pivots Calculations of pivot levels formula is according to book "Secrets of a Pivot Boss" by Franklin O. Ochoa. Quote from the book: "The way to make money is to make it. The way to make big money is to be right at exactly the right time." Open source. Enjoy!
Pine Script® Indikator
von synth0
CPR by WsrWe recommend some preconditions for Intraday Trading Strategy with CPR (Central Pivot Range) Rules For BUY Setup with CPR 1) Today's Pivot Level Should be higher than Previous Day's Pivot Level 2) The previous day's close should be near day's high. Rules For SELL Setup with CPR 1) Today's Pivot Level Should be lower than Previous Day's Pivot Level 2) The previous day's close should be near day low. CPR or central pivot range is the best tool available for the trader to see the price base indicator. You can use this tool i.e CPR (central pivot range) to check the price indicator in the stock market. You know the price of shares sometimes goes up or sometimes goes down in the stock market. So it will be best to stay updated and know it before the time the share market/stock market fall or rises.
Pine Script® Indikator
von wisestockresearch
3
CPR_ATR_PIVOTIntroduction What is so special about this variation of CPR is that it combines three indicators together. It has Central Pivot Range to understand market trend and for taking entry; Average True Range Stop line to identify the stop loss for any trade keeping in view volatility of the instrument; and Standard Pivot Points for profit targets. So overall it combines all essential ingredients for trading in a single indicator. While CPR and Pivot values will remain fixed, the ATR period and multiple can be changed. Central Pivot Range: is a useful intraday technical indicator which comprises 3 levels – a Central pivot point (pivot), Top central level (TC), and Bottom central level (BC). These levels are calculated as follows: TC = (Pivot – BC) + Pivot Pivot = (High + Low + Close)/3 BC = (High + Low)/2 The 3 levels are calculated using 3 variables, High, Low, and Close price. When you add CPR levels in a stock’s chart, TC is highest, the pivot is at the center and BC is the lowest level. However, depending on market conditions TC’s value may be lower than BC. The fundamental idea behind this indicator is that the particular day’s trading range captures everything about the market sentiment, and hence this range can be used to predict the price movement of the following days. This indicator was first introduced by Mark Fisher in this book “The Logical Trader”. Frank Ochoa added another dimension, central pivot point to this indicator. Practical Applications: CPR Breakout: Any high volume breakout above or below the TC and BC lines respectively indicates a high probability that the movement will continue. CPR Width The width of the CPR lines very accurately gives an idea of the expected price movement. If CPR width is narrow, that is the distance between TC and BC lines of CPR is very low, then it indicates a trending market. While if the distance between TC and BC lines is relatively higher it indicates sideways market. CPR as Support and Resistance CPR lines can also act as support and resistance. Market may takes support or resistance at the CPR and reverse. ATR Stop: I am adding another useful indicator known as ATR stop with CPR. Once market takes support and resistance at the CPR, trade can be taken with stoploss under/above (as the case may be) the ATR stop line. It would help in absorbing the intraday volatility in a stock or instrument. Pivot Points: Pivot points can be taken as target points where partial or full profit (depending upon market conditions and momentum) can be taken. I hope this indicator would help some traders in taking better trading decisions. Regards jjsingh_2020
Pine Script® Indikator
von Bravetotrade
17
CPR by GuruprasadMeduriThis script will allow to add CPR with Standard Pivot ad 9 levels of support and 9 levels of resistance lines. It has CPR, 3 levels of Day-wise pivots, 3 levels of Weekly pivots and 3 Levels of Monthly Pivots. All the Support and resistance levels can be enabled / disabled from settings. It will allow to select multiple combinations of support and resistance levels across 3 levels at any of the 3 time-frames individually and combined. These number of combinations will allow user to visualize the charts with desired pivot support & resistance levels on all or any of the 3 time frames. For Ease of access, listed few points on how the script works.. - CPR and day-wise level 1 & 2 (S1, R1, S2 R2) enabled by default and can be changed from settings - Day-wise Level 3 (S3 & L3) can be enabled from settings - Weekly 3 levels and Monthly 3 levels can be enabled from settings - CPR & pivot levels colored in blue lines - All support levels colored in Green - All resistance levels Colored in Red - Day-wise pivot, support & resistance are straight lines - Weekly pivot, support & resistance are cross (+) lines - Weekly pivot, support & resistance are circle (o) lines - Any combinations can be selected from stettings-> Inputs & style // - This is an iterative development. Will add more features due course of time. Suggestions are always welcomed!!
Pine Script® Indikator
von GuruprasadMeduri
35