The central pivot range CPR indicator provides the best analysis of daily price levels in the market. Almost all traders use the daily price levels as support and resistance levels. Because by using these levels, traders can analyse the zones where the price makes decisive moves.
Working of CPR Indicator :
The CPR indicator works similar to the pivot point indicator. Still, it also has additional features where it uses the top, bottom and central pivot points to define critical levels at which the price makes decisive moves. It also has a feature that shows considerable support and resistance zones based on the pivot points.
This indicator is not a signal rendering indicator; instead, it provides the details you can use in your technical analysis. These are the areas where you can potentially find supply and demand zones.
Trading Guide For CPR Indicator:
As stated above, the indicator itself does not provide signals. Instead, it shows the critical zones which can be used in the trading analysis. The levels offer by the indicator are as follows.
- Central Pivot Point(PV)
- Top Central Pivot Point(TC)
- Bottom Central Pivot Point(BC)
Central Pivot Point(PV):
This level can determine if the market is going bullish or bearish. If the price is moving below the central pivot point, bearish sentiment exists in the market. If the price moves above the central pivot point, that represents the bullish sentiment in the market.
Top and Bottom Pivot Point(TC) & (BC):
These pivot levels are used to determine the direction of the market. For example, if the price moves above the top central pivot, the market is in a bullish trend, and there is an excellent opportunity to the long position. Similarly, if the price moves below the Bottom central pivot line, that means the market is in the bearish direction. And this indicates there is an excellent opportunity to take a short position.
The CPR indicator can not only save you plenty of time, but it also gives valuable information in the form of levels that can be used to place trades. New traders who find it difficult to determine the critical levels in the market can use the CPR indicator to help identify the zones where they can be potentially critical levels.
To download the CPR indicator for free, you can click on the button below.Download indicator