The Power of Central Pivot Range (CPR) Indicator Intraday Trading Strategy for Profitable Trades.
Thu May 4, 2023
"Like Moon which control tide of the sea, CPR indicator control Tide of the market"
CPR is the Leading indicator which is the average of previous day close, high and low of the stock market. It is a widely used technical analysis tool that provides valuable insights into market trends and price movements. If you read complete article then you will get detailed answer for What is CPR indicator in Trading ?
CPR indicator Formula
The CPR indicator is comprised of three levels: the central pivot level ( P), the Top CPR level (TC), and the Bottom support level (BC). The central pivot level is the most important level, as it represents the average of the previous day's prices. I am giving one figure which explain CPR and Pivot Points.
Fig. 1 - Central Pivot Range and Pivot points indicator.
You can use the CPR indicator to identify high probability trading opportunities by using CPR by Trading Direction indicator. When prices break through the upper pivot R1, resistance level, You may consider going long means buy a stock or future contract, while when prices break, Breakdown, through the lower support level S1, and Previous day Low traders may consider going short. Means Sell a Stock or Buy put option of the index. I am using central pivot level for setting stop-loss orders, Below R1 and Above S1. If you want to learn detail of CPR Trap zones then Download this cpr trading strategy pdf brochure.
CPR indictor full form is Central Pivot Range indicator, To understand the results and effectiveness of the CPR indicator strategy, let's take a look at some facts and data. A study conducted by TradingSim analyzed the performance of the CPR indicator strategy on the S&P 500 index from 1998 to 2018. The study found that the CPR indicator strategy had a win rate of more than 54%, with an average Reward profit of $262 per trade and an average Risk or loss of $218 per trade. The overall, Reward is higher, profit factor was 1.34, indicating that the strategy is profitable over the long term.
I am Adding Weekly CPR indicator which increases the accuracy of trading. To use my specially designed indicator, go to trading view and install CPR by Trading Direction.
Fig. 2 CPR by Trading Direction Version 2, Indicator available in Tradingview free
If you want more accuracy proof then I will give another data and study, conducted by DayTradeToWin analyzed the performance of the daily CPR indicator strategy on the E-mini S&P 500 futures market from 2015 to 2019. The study found that the CPR indicator strategy had a win rate of more than 58%, with an average profit of $329 per trade higher than other lagging indicator strategy and an average loss of $292 per trade which is lesser. The overall profit factor was 1.36, Which give reward to risk ratio of 1.36 : 1.
These studies provide proof that the CPR indicator strategy is effective Intraday trading tricks which is high accurate. If you add Price Action confluence principle then your accuracy will Increase. You can Read the CPR trading books to learn in detail 11 Secret trading strategies. CPR Trading Strategy Books.
Which CPR indicator is best for intraday?
One of the most popular applications of the CPR is the concept of the "Trap Zone" and the "Trading Zone". Zone between TC and BC is first Trap Zone, where most of the Consolidation happens. These Three zones can be used to identify potential trading opportunities and help traders make more informed trading decisions.
Fig. 3 Trap zones and Trading Zones in CPR by Trading Direction Version 3
The Trap Zone is an area or levels of the market where traders are likely to consolidate and retail traders get trapped and make losses in overtrading. This zone is located in between Previous day High and R1. where there is Wide CPR then Trap zone is also Wide. When prices break through the CPR trap zones and enter the trading Zone, momentum will generate, so you can trade in that zone. This creates a self-fulfilling cycle where more traders are stopped out, leading to a upward and strong up trend.
cpr indicator tradingview:
If you want detail setting of CPR indicator on trading view then watch this videoCPR by Trading Direction V2 is best cpr indicator in tradingview. It is easy to use and install.
cpr strategy for intraday
CPR Brahmastra strategy is the best strategy for beginners. It is designed by Trading Direction, using concept of Trap Zone Breakout Strategy. Special offer for reader is at 99/- Only. You need to register and confirm the slots, Now ! Yes I want To Learn CPR Brahmastra Strategy from the Mentor !
I have done detailed research on CPR indicator for more than 6 years, And Designed 11 Secret Profitable Trading Strategies. Complete Video course and Live training is available. If you join Intraday Trading Mastery Program then you will get cpr trading strategy ppt Free. In this course I will cover CPR technical Analysis in detail.
What is CPR trading zone?
The Trading Zone, is an area of the market where traders can find profitable trading opportunities. This zone is located above the R1 and below S1. When prices break through the CPR trap zones then enter to the Trading Zone, The Big Elephant candle is the trigger candle, you can look for buy above R1, and sell signals below S1. Entry should be near 20 period moving averages. You will get 3 : 1 Reward to risk ratio. CPR Brahmastra Strategy has more than 80 % accuracy rate.
Start using Trap Zone and Trading Zone in your trading strategies?
Approach is to look for breakouts from the CPR trap range, and then wait for prices to enter the Trading Zone. By using top version of CPR by Trading Direction V3, to identify these zones, you can minimize your risk exposure and increase your chances of making profitable trades.
Another approach is to use the Trap Zone as a stop-loss level for long positions. If prices break through the Trap Zone after entry, below R1, you can use this as a signal to exit your long positions and avoid getting trapped in a losing trade.
Intraday Traders can use Daily CPR, in combination of Weekly CPR. Positional Traders can use weekly and Monthly CPR for swing trading.
Trap Zone Breakout Trading Strategy
When the price breaks out of the Trap Zone, traders can take a position in the direction of the breakout. For example, if the price breaks above the Top CPR (TC) level, traders can take a long position, while if the price breaks below the Bottom CPR (BC) level, you can take a short position. You can set stop-loss orders at the opposite end of the Trap Zone to manage your risk.
There are many resources available on Trading Direction website for traders who want to learn more about the CPR indicator and its various trading strategies. There are CPR trading books, CPR trading strategy PDFs and CPR trading strategy PPTs. visit www.tradingdirection.in
The CPR indicator is a leading indicator for technical analysis in the stock market. The indicator is based on Price and it is using by professional Traders and institutional traders for identifying potential trading opportunities and set stop-loss orders. The Trap Zone and Trading Zone concepts designed by Anil Hanegave are popular Intraday trading strategies of the CPR indicator and can be used to make more informed trading decisions. Adding price action confluence principle can increase its accuracy. The CPR Brahmastra strategy is a recommended strategy for beginners, and courses and live training are available for those who want to learn more about CPR technical analysis.
Overall, the CPR indicator is providing traders with valuable insights into market trends and price movements.
Thank you !
Anil Hanegave, Trading Direction
India-based Trader, writer, Trading mentor, Pasionate about Trading and Coaching.