Documentation

About Central Pivot Range

Understanding the mathematics, structure, and trading applications of the CPR indicator.

What is CPR?

The Central Pivot Range (CPR) is a highly powerful technical analysis indicator used by traders to identify key support and resistance levels, determine market bias, and predict potential breakouts.

Unlike standard pivot points that only plot a single line, the CPR consists of three levels: the Pivot Point (P), the Top Central Pivot (TC), and the Bottom Central Pivot (BC).

Together, these three lines form a dynamic band that acts as a gravity center for price action. The relative width of this band provides clues about the expected market regime (trending vs. range-bound).

The Calculation Math

All levels are calculated using the previous session's High (H), Low (L), and Close (C):

Pivot (P) = (High + Low + Close) / 3

Bottom Central (BC) = (High + Low) / 2

Top Central (TC) = (Pivot - BC) + Pivot

Note: The Top Central and Bottom Central values are normalized. If the calculated TC is lower than BC, they are swapped so that TC is always the higher boundary.

Regime Classification & Trend Logic

The percentage width of the CPR (calculated as (TC - BC) / Pivot * 100) defines the market classification:

Narrow CPR (< 0.3%)

Indicates tight consolidation in the previous session. Expect a Trending Day ahead. Price is highly likely to breakout and run directionally.

Normal CPR (< 0.8%)

Indicates balanced market forces. Expect a Balanced Session. Price may trade directionally or swing back and forth around the pivot.

Wide CPR (>= 0.8%)

Indicates large price swings in the previous session. Expect a Range-Bound Day ahead. Price is highly likely to reject extremes and revert.