CPR (Central Pivot Range) compresses bars into three levels — central pivot, pivot and resistance — creating a 'range'. Traders use it to anticipate a session's range and reversals. It is useful, not miraculous. Here is how it works.
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What CPR Shows
CPR plots Pivot (main), R1 (resistance) and S1 (support) from the prior period's high, low and close. The 'Central Pivot Range' is the band between an adjusted pivot and the extremes.
How Traders Use It
- A wide CPR suggests a volatile session; a narrow one, a quiet session.
- Price holding above CPR is bullish; below is bearish.
- Reversals near the CPR band offer entries.
The Honest Limits
CPR is based on extensions of the prior session — it describes likely ranges, not certainties. Use it with structure and risk rules.
FAQ
Is CPR a 'secret' tool?
No — it is a standard pivot method; its 'secret' framing is marketing.
What timeframes suit CPR?
Daily pivots are standard; intraday traders use hourly variants.
Related: Break & Retest and Optimization.