15 Secrets of CPR

          15  Secrets of CPR

 

1.      Central pivot range (CPR) is the most important and powerful pivot point in intraday trading.

2.      If weekly, monthly pivots are near to central pivot point then they are not powerful, but if they are far from the CPR (Central Pivot range) they are powerful.

3.      If the price is above the central pivot range the stock generally known as Bullish, If the price is below the central pivot point the stock is generally known as Bearish.

4.      If the range of the central pivot range is wider it’s very difficult to penetrate the price into it, so the Wider CPR (central Pivot Range) has more strength than the narrow CPR, (Most often).

5.      If the CPR is too narrow, we can expect a trend day if the CPR is wider then we can expect a range day.

6.      Virgin CPR is more powerful, it can act as strong support and resistance. Nearest virgin CPR is more powerful than far virgin CPR.

7.      Price respects virgin CPR at the opening time compared to the afternoon session.

8.      In an Uptrend the price should be above CPR most of the time, in a Down Trend the price should be below CPR most times.

9.      In a strong Down Trend if the price comes towards the CPR level, you can short that particular stock from there if you get any reversal pattern from the CPR level and you can place the stop-loss above Central Pivot Point. (This is generally known as bearish retracement trade).

10.   In a strong Uptrend if the price comes towards the CPR level, you can Buy that particular stock from there if you get any reversal pattern at CPR level, and you can palace your stop-loss below the central pivot point. (This is generally known as Bullish retracement trade).

11.   Daily Pivot range is stronger than the weekly pivot range, and the weekly pivot is more powerful than the monthly pivot range. This means you should give more importance to the Daily CPR.

12.   CPR can be used to forecast the trend of any particular stock or Index.

13.   Inside value CPR is another important Central Pivot Range, if you get Inside value CPR there is a chance to get trending days in the market like narrow CPR days.

14.   Previous close is above Daily Pivot Range the stock is Bullish.

15.   Previous close is below Daily Pivot Range the stock is Bearish.

        If you want to know more about pivot points you can read the book “The Logical Trader”

 by Mark Fisher.