What is CPR in Trading?
5paisa Research Team
Last Updated: 09 Jul, 2024 11:23 AM IST

Content
- Introduction
- What Do You Mean By Central Pivot Range (CPR) in Trading?
- Understanding CPR Trading
- How can you calculate CPR?
- How can you interpret the Central Pivot Range?
- The main advantages of CPR
- Conclusion
Introduction
Most of the stock trader's portfolio includes technical analysis. The volume and price changes of these stocks are influenced by several variables, including the supply and demand for the company's shares and general market sentiment, in addition to the fundamental examination of the stock. Different tools and approaches may be used to do such a technical analysis of the stocks.
Reading various charts and interpreting them for taking a lucrative position depended on the stock market movement is one of many such strategies. A popular technique traders use for stock analysis is the central pivot range. This post has entailed more information on what is CPR in trading.
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Frequently Asked Questions
The CPR in trading breakout occurs when the price of a stock crosses either the top central pivot point (TC) or the bottom CPR point. A CPR breakout indicates a significant bullish or bearish trend in the market. Prices above the TC and below the BC suggest bullish trends, respectively, while prices below the BC denote bearish trends.
CPR width refers to the space between the BC and TC lines. The width of a CPR might be small, large, or medium. A large CPR width denotes sideways markets, whereas a low CPR width denotes a bullish or bearish market.
CPR often offers maximum accuracy and is employed during intraday trading. It may also help to analyse the monthly and daily stock charts and identify the most common stock patterns. CPR is often calculated at a longer time frame compared to the one utilised for trading. Suppose, if a trader wants to trade daily, CPR must be computed using a weekly period, but if a trader wants to trade weekly, CPR must be calculated using the monthly time period.
The lowest, highest, and the closing stock levels from the previous day or prior session serve as the foundation for calculating CPR.