CPR Lines

6 giu

The "CPR Lines" script, written in Pine Script version 5, is designed for use in the TradingView platform to help traders visualize Central Pivot Range (CPR) levels on their price charts. This script calculates and plots three essential pivot levels based on the prior trading day's high, low, and close prices, providing traders with key reference points for potential support and resistance levels in the current trading session.

Key Features:

Prior Day's Data Calculation:

The script retrieves the high, low, and close prices of the previous trading day using the request.security function. These values are crucial for calculating the CPR levels.

Central Pivot Line (CPL):

The CPL is calculated as the average of the prior day's high, low, and close prices. It serves as the primary pivot point around which the price action is likely to revolve.
Bottom Central Pivot (BCP):

The BCP is calculated as the average of the prior day's high and low prices. This level often acts as a support line in a bullish trend.
Top Central Pivot (TCP):

The TCP is derived by adding the difference between CPL and BCP to the CPL itself. This level can serve as a resistance line in a bearish trend.
Plotting the CPR Levels:

The script plots the CPL, BCP, and TCP on the chart with distinct black lines for easy identification. Each line is labeled accordingly and plotted with a linewidth of 2 for better visibility.
This script aids traders by providing visual cues for key price levels, enhancing their ability to make informed trading decisions based on historical price movements. By incorporating these pivot points, traders can better predict potential price reactions and plan their trades accordingly.