Central Pivot Range (CPR) Indicator Explained

Central Pivot Range (CPR) Indicator Explained


Central Pivot Range (CPR) Indicator Explained — with David Moadel hey everybody this is David Modell
looking at the markets going to give you a brief introduction or explanation of
CPR no not the medical CPR talking about central pivot range the CPR indicator
I’ll show you very briefly how it’s calculated you don’t really need to know
how it’s calculated or at least you don’t have to memorize it but it is good
to at least understand what it is and then I’ll show you what that might look
like and where to find it because it’s not easy to find on the internet
necessarily so calculating the three CPR pivot points and it’s a lot not a lot
like but kind of similar to pivot points traditional pivot points and I made a
video on that and I’ll put a link to that in the description below this video
if you want to check out my older traditional video on pivot points the
traditional pivot points there are five of them but with the CPR central pivot
range indicator the basic format has three
all right so calculating the three CPR pivot points is based on the previous
day’s price ranges so you got your pivot and that is calculated by the high and
this is from the previous day okay so look at the you know yesterday’s prices
you take the yesterday’s high plus yesterday’s low and yesterday’s closing
price add them all up and then take that number and divide by three that’s your
pivot for today then to calculate your bottom central pivot which is below the
pivot that is yesterday’s high plus yesterday’s low price add them up and
then take that number and divide by two and then to get the upper line the top
central pivot you take the pivot you know the the middle line which you
already calculated above and then you subtract the bottom central pivot which
you already calculated subtract and then whatever number you get
now you add the pivot all right so that’s the
top line there will be three lines all right and I’ll show you what that looks
like in a moment and where to find it but by the way a lot of people ask me
for a coaching for help with their trading or investing if you’d like some
help with that you can email me at David Modell at gmail.com for the coaching all
right so where do you find this it’s not easy I mean if you google it you know
maybe your trading platform has it that’s great if not then you can go to
trading view trading view calm trad ing VI e WM want to give them credit I use
them quite a bit and it’s there’s a free version here which I’m using right now
and you go to the front page where on the home page here and you see the
search box alright well you see how it says ticker first you have to change
that alright you click on ticker and from the drop down menu you go to
scripts alright scripts and click on that now you’re going to do a script
search alright so first let’s try well let’s type it in okay so I’m gonna you
either copy and paste it or you could you could type it in either way central
pivot range and then search and now I cannot vouch for any of these I cannot
guarantee that any of these work okay these are submitted by people who are
coders and you know script writers so these are user generated scripts I
cannot guarantee any of them although the one that I found to be pretty good
in my opinion again no guarantees it’s by sure wind sure windy St developing
central pivot range and I’m gonna click on that one
here it is and this individual has applied it to the its Forex currency
pairs the URL against the dollar all right and notice that yeah three lines
you know one two three all right you got your top your bottom and then you
your middle pivot there all right three lines and then when the you know when it
changes it goes to three different prices and when it changes goes to three
different prices and so on okay so what you can do is and you could make it a
monthly pivot you can make it a daily pivot whatever you like
all right I’ve seen you know you could conceivably perhaps use it for shorter
timeframes you could try it out although I usually have seen it for daily you
know they change the price every day or you could change it every week or every
month whatever you like totally your choice you might have to modify the
script what I like about this one is that you can see it whoops you can see
it right there in the script there it is right the pivot high plus low plus
closed divided by three and then you got your bottom right and then your top and
that’s that’s the formula that we know so you know if you’re going to use a
script check the formula make sure that it is accurate all right and then adjust
it to the timeframe that you like so how do you use the three lines well there’s
no definite way of using it a lot of people use the pivot you know just like
traditional regular pivot points a lot of people use them as support and
resistance all right so for example if the price is down here
and then if it breaks through the bottom of the three lines the bottom pivot or
the lower pivot if it breaks through it strongly if it closes above it with
heavy volume then your you might go long with your you know your target your your
profit target being you know the the line above it which really the mid line
here okay the central pivot middle pivot
point and then if it keeps going with volume and momentum above that then your
next target price target might be the top line here okay or if you’re shorting
the other way around if the price falls hard and fast and
with heavy volume you know below this upper line here then you might take a
short position now shorting is not for most people
shorting can be a dangerous game can be risky so please be careful with shorting
and you don’t have to do it at all by the way if you don’t want to that’s okay
but if you are the type of person who you know if you like to go short if
you’re willing to take that risk then if it goes below this one with a lot of
volume and closes below it strongly perhaps with a big red candle then you
might take a short position with your profit target at the mid line and if it
keeps going down further then your profit target might be that bottom line
so you know again support and resistance levels that’s one way to use it you know
you can interpret these lines however you like it’s it’s a lot like again you
know regular traditional pivots in some ways now what I like about the
traditional pivots is that oftentimes you’ll get five lines instead of just
three and when you have five lines five pivot points then you can use them it’s
easier to use them not only as profit targets but also you can use them as
stop losses it’s not so easy when you only have three lines to you know figure
out what your stop-loss is going to be necessarily all the time so that’s
something to think about but this is you I think it can be useful these three
lines again just for interpretation nothing works perfectly okay another
script you might want to consider excuse me you might want to consider if you go
back to trading view here’s the home page again not ticker you’re searching
for scripts if a range whoops a row trivet range if I could
since I could type pivot range there we go search and there was another
one that I kind of liked let me see if I could find it here it is yeah this one
by Christian dot D I kind of like this one as well again I cannot guarantee
that any of these work perfectly okay so here’s another script and you know
you always want to check the script make sure and hear it here’s the script
and again the formulas you know that’s what I’m looking for
you want to check the formulas in the script make sure that it’s a that’s
accurate okay and so you know kind of similar concept here interestingly
sometimes the three you know the three lines might be very close together
so it might be hard to hard to work with it sometimes okay so that’s something to
think about all right and so this is on a shorter time range than the the
previous example this is from Apple okay so I hope this was helpful to you
alright just an introduction be careful with any script know what you’re doing
and you really have to make the final decisions yourself but if you do want to
mentor just for you know help with trading and investing helping you to you
know put together your own trading or investing plan because you really want
to have a plan you can email me for the coaching at David Modell MOA de L at
gmail.com and if you like this video please give it a thumbs up right now and
subscribe to my youtube channel and hit that notification bell on YouTube if you
haven’t done that already that way you’ll be updated whenever I put out new
videos like this one hey thanks a lot for watching and listening I’ll talk to
you again soon

One Comments

  • Am Zaca

    November 11, 2019

    You have an updated version here https://github.com/sherwind/pinescript-cpr/blob/master/CentralPivotRange.pinescript

    Reply

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