CPR - Central Pivot Range (by Alex L.)

How it works

The Central Pivot Range (CPR) calculates pivot points using a proprietary formula from the book 'Secrets of a Pivot Boss' by Franklin O. Ochoa. It generates multiple support and resistance levels based on price action, including daily, weekly, monthly, and even yearly pivot points. Traders can customize the indicator to view one to four pivot levels simultaneously.

The indicator uses color-coded markers to distinguish entry levels (red) and resistance levels (green), making it easy to identify potential trading opportunities. By comparing the current Central Pivot Range with previous ranges, traders can determine trend direction and potential market momentum.

Why it may be useful

CPR provides traders with a comprehensive view of market dynamics by offering multiple pivot levels across different timeframes. It helps traders identify potential entry and exit points, understand trend strength, and anticipate potential price movements with greater precision. The indicator's flexibility allows traders to adapt to various market conditions and trading styles.

By revealing support and resistance levels, CPR enables traders to make more informed decisions about trade management. The ability to view future pivot levels and adjust chart visibility helps reduce market 'noise' and focus on critical price action, potentially improving trading strategy and risk management.

When to explore it

CPR is most effective when used in trending markets, particularly when the current pivot range shows clear directional movement. Traders should pay special attention when the Central Pivot Range is noticeably higher or lower than previous ranges, indicating potential trend shifts. It works well across multiple timeframes, from short-term scalping to longer-term swing trading.

The indicator is particularly useful during periods of low volatility, where a tight Central Pivot Range might signal an imminent price breakout. Traders can enhance its effectiveness by combining CPR with other technical analysis tools and switching between different timeframes to confirm potential trading signals.

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