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The Central Pivot Range (CPR) is a technical indicator that uses the previous trading session’s high, low, and closing prices to calculate three different price levels:
| Price Level I: Pivot (P) | Price Level II: Bottom Central (BC) | Price Level III: Top Central (TC) |
| High + Low + Close3 | High + Low2 | 2 x Pivot (P) – Bottom Central (BC) |
The area between BC and TC forms the Central Pivot Range. Generally, traders use CPR to identify potential support, resistance, trend conditions, and price zones.
Traders may make the following CPR observations:
| CPR Observation | Possible Interpretation |
| Price Above CPR | May indicate bullish market conditions |
| Price Below CPR | May indicate bearish market conditions |
| Narrow CPR | May indicate the possibility of a larger price move if supported by other market factors |
| Wide CPR | May indicate a broader price range |
| Price Moving through CPR | May indicate a change in intraday market conditions |
Additionally, CPR can be combined with price action, volume, previous-day levels, and other technical indicators. Note that it does not guarantee a particular market direction.
The Central Pivot Range can help traders study potential support, resistance, and price zones using previous-session price data. Trade246 gives you advanced TradingView charts and professional drawing tools to mark CPR levels and examine price movements around them.
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