The Central Pivot Range (CPR) is absolutely, without a doubt, the most powerful part of the Floor Pivots indicator.
It has three lines, Upper line is called "TC", lower line is called "BC" and the Middle line is the "PP-Pivot Point"
Formula to Calculate CPR :
TC = (Pivot - BC) + Pivot
Pivot = (High + Low + Close)!3
BC = (High + Low)/2
At any given time, the range can be support or resistance, it can forecast trending or sideways price behavior, dictate the day's direction, or serve as an integral part of a trend.
By seeing the gap/width between TC & BC we will be able to know how the session is going to be i.e "Trending / Sideways". If the Gap is very Narrow we can expect Trending market either side. If the Gap is wide that particular session will Volatile / Rangebound market.
There are 7 CPR - Two day relationship concepts available which will indicate you the next day trend direction. (Comparing the Current session CPR with Previous Session CPR where the three lines are formed and its relationship.)
Higher Value = Bullish
Overlapping Higher Value = Moderately Bullish
Lower Value = Bearish
Overlapping Lower Value = Moderately Bearish
Unchanged value = Sideways / Breakout
Outside Value = Sideways
Happy Trading, Follow me for more updates, education details, concepts and ideas.
It has three lines, Upper line is called "TC", lower line is called "BC" and the Middle line is the "PP-Pivot Point"
Formula to Calculate CPR :
TC = (Pivot - BC) + Pivot
Pivot = (High + Low + Close)!3
BC = (High + Low)/2
At any given time, the range can be support or resistance, it can forecast trending or sideways price behavior, dictate the day's direction, or serve as an integral part of a trend.
By seeing the gap/width between TC & BC we will be able to know how the session is going to be i.e "Trending / Sideways". If the Gap is very Narrow we can expect Trending market either side. If the Gap is wide that particular session will Volatile / Rangebound market.
There are 7 CPR - Two day relationship concepts available which will indicate you the next day trend direction. (Comparing the Current session CPR with Previous Session CPR where the three lines are formed and its relationship.)
Higher Value = Bullish
Overlapping Higher Value = Moderately Bullish
Lower Value = Bearish
Overlapping Lower Value = Moderately Bearish
Unchanged value = Sideways / Breakout
Outside Value = Sideways
Happy Trading, Follow me for more updates, education details, concepts and ideas.