Central Pivot Range (CPR)

The Central Pivot Range (CPR) is one of the most popular pivot point variations, widely used by intraday traders. Unlike standard pivot points that focus on a single line and multiple support/resistance levels, CPR creates a price band (range) that acts as the market’s balance zone. This range helps traders determine trend bias, strength, and likely market conditions for the day.

💡 Significance of CPR

• Provides a trend bias (price above CPR = bullish, below = bearish).
• Width of the range indicates market type (narrow = trending, wide = sideways).
• Serves as a reference zone for entries, stop-loss placement, and targets.
• Becomes a powerful intraday tool when combined with volume or price action.
• Popular among traders for ready-made strategies (CPR Breakout, Inside CPR, Virgin CPR).

📊 Components & Formula

• Pivot (P) = (High + Low + Close) ÷ 3 → central level
• Bottom Central Pivot (BC) = (High + Low) ÷ 2 → supportive base
• Top Central Pivot (TC) = (P − BC) + P → resistance line
  👉 The range between TC and BC forms the balanced CPR zone.

🧩 Formation Context

• Derived from the previous trading day’s historical
• Plotted once at the start of the day → remains unchanged.
• Narrow CPR occurs when the previous day had a small trading
• Wide CPR occurs when the previous day had a large price

🌐 Market Condition (Interpretation)

• Price Above CPR → bullish bias, look for long trend
• Price Below CPR → bearish bias, look for short trade
• Price Inside CPR → neutral or sideways market
• Narrow CPR → high chance of strong trending price
• Wide CPR → higher probability of range-bound session

🎯 Trading Strategies Using CPR

1. CPR Breakout Strategy

   • If price opens near CPR and breaks above TC → bullish breakout.
   • If price breaks below BC → bearish breakout.
   • Works best with confirmation from volume or momentum indicators.

2. Inside CPR Strategy

   • When price stays within TC–BC zone for a long period.
   • Indicates consolidation → wait for breakout on either side.
   • Ideal for options breakout trades (straddle/strangle).

3. Virgin CPR Strategy

   • When CPR of a previous day is not tested by price.
   • Acts as a strong magnet in future sessions.
   • Useful for target zones or reversal levels.

4. CPR Width Strategy

   • Narrow CPR → prepare for trending moves (breakouts likely).
   • Wide CPR → expect sideways market (reversals near S/R).

📊 CPR Trading Strategies – Quick Reference