The Central Pivot Range Indicator (CPR) is a technical indicator that is used by traders to identify potential support and resistance levels in the market.
It is an advanced form of the traditional pivot point indicator and is commonly used in Forex and stock trading.
The CPR indicator consists of three levels: the Central Pivot (CP), Top Central Pivot (TCP), and Bottom Central Pivot (BCP).
The Central Pivot is the most crucial level and is calculated as the average of the high, low, and closing prices of the previous trading day.
The Top Central Pivot is the upper boundary of the CPR, and it is calculated by adding the high of the previous trading day to the Central Pivot.
The Bottom Central Pivot is the lower boundary of the CPR, and it is calculated by subtracting the low of the previous trading day from the Central Pivot.
When the price is trading above the Central Pivot, it is considered bullish, and traders may look for buy opportunities. On the other hand, when the price is trading below the Central Pivot, it is considered bearish, and traders may look for sell opportunities.
Buy Signal Generation With Central Pivot Range Indicator
CPR indicators can help identify support and resistance levels. When the price is above Central Pivot, it’s bullish, and above Top Central Pivot, it’s a buy signal. Use support/resistance levels for profit targets and Top Central Pivot for stop-loss.
Wait for bullish candlestick patterns to confirm. Use CPR with other tools and risk management.
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Sell Signal Generation With Central Pivot Range Indicator
The CPR indicator can generate sell signals when the price is below the Central Pivot or Bottom Central Pivot levels. Traders can use support and resistance levels as profit targets, and Bottom Central Pivot as a potential stop-loss level.
Look for bearish candlestick patterns to confirm. Always use proper risk management techniques and combine CPR with other tools for better results.