# Central Pivot Range

The Central Pivot Range (CPR) is a technical tool predicting potential support and resistance levels. It’s calculated from the previous day’s high, low, and close prices, offering a central pivot point with two accompanying levels, guiding traders in making informed entry and exit decisions.

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## What Is Central Pivot Range?

Central Pivot Range (CPR) is a technical analysis tool that calculates key support and resistance levels for a trading day. It’s derived from the prior day’s high, low, and close, providing a central pivot and two critical surrounding levels for market guidance.

The Central Pivot Range (CPR) is primarily used in day trading to predict key price levels. It includes a central pivot point, calculated from the previous day’s high, low, and closing prices, and serves as a primary gauge for potential price movement.

Surrounding the central pivot are two additional levels: the top and bottom pivot ranges. These act as potential support and resistance zones. Traders use these three points to strategize entries, exits, and set stop-loss orders, interpreting them as key signals for market sentiment.

For example: Consider a stock with a previous day’s high of ₹150, low of ₹130, and close of ₹140. The CPR calculates a central pivot at ₹140, with support around ₹130 and resistance near ₹150, guiding traders on potential entry and exit points.

## How To Calculate CPR ? – CPR Calculation Formula

To calculate the Central Pivot Range (CPR) in rupees, first find the pivot point: add the previous day’s high (e.g., ₹150), low (e.g., ₹130), and close (e.g., ₹140), then divide by three. This average is the central pivot. The top and bottom levels are calculated using different formulas involving these same values, providing support and resistance ranges.

Pivot Point (P): P = (High+Low+Close) / 3

Top Central Pivot (TC): TC = (Pivot Point+High) / 2

Bottom Central Pivot (BC): BC = (Pivot Point+Low) / 2