Pivot points and CPR: Today’s map, drawn from yesterday
How pivot points and the Central Pivot Range are worked out from yesterday’s high, low and close, and why a narrow CPR often comes before a trending day.
Yesterday’s prices draw today’s lines
Pivot points turn three numbers from yesterday, its high, low and close, into a set of lines for today. They are fixed before the 9:15 open, so every intraday trader looking at the same stock sees the same map. That is why they are so popular in India. The pivot (P) is the average of yesterday’s high, low and close. The bottom central (BC) is the midpoint of the high and low. The top central (TC) is the pivot plus the gap between P and BC (2 × P − BC). The band between BC and TC is the Central Pivot Range, or CPR. Above it, R1 is twice the pivot minus yesterday’s low. Below it, S1 is twice the pivot minus yesterday’s high.
What to look for
- Price above the CPR: buyers have the upper hand today. Below it: sellers do.
- A narrow CPR (TC and BC almost touching) often comes before a trending day, a bigger move one way. A wide CPR hints at a slow, sideways day.
- R1 and S1 are the next lines out, where traders expect a move to pause or speed up.
If yesterday closed below the middle of its range, TC works out lower than BC. Traders just call the upper line TC and the lower line BC.
Yesterday’s high was ₹1,518, its low ₹1,479 and it closed at ₹1,500, near the middle. That puts today’s CPR between ₹1,498 and ₹1,499, only 0.07% wide. What does a CPR this narrow hint at?
- A quiet day stuck in a small range
- Nothing. CPR only works on weekly charts
- A trending day, with a bigger move in one direction
Show the answer
A trending day, with a bigger move in one direction. A narrow CPR means yesterday ended balanced, with no clear winner. Balance tends to give way to a strong move. A wide CPR is the opposite: yesterday’s fight was messy, and today often stays choppy.
Narrow CPR, trending day
Yesterday ended near the middle of its range, so today’s CPR was very narrow, from ₹1,498 to ₹1,499. The stock opened above it, dipped back to test it once, held, and then climbed through R1 at ₹1,519. A narrow CPR with price holding above it is the setup intraday traders watch for a trending day up.
A narrow CPR only says a big move is more likely. It does not say which way. Price above or below the CPR gives the direction.
Practise Pivot points and CPR, free
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Common questions
What is Pivot points and CPR?
Pivot points turn three numbers from yesterday, its high, low and close, into a set of lines for today. They are fixed before the 9:15 open, so every intraday trader looking at the same stock sees the same map. That is why they are so popular in India. The pivot (P) is the average of yesterday’s high, low and close. The bottom central (BC) is the midpoint of the high and low. The top central (TC) is the pivot plus the gap between P and BC (2 × P − BC). The band between BC and TC is the Central Pivot Range, or CPR. Above it, R1 is twice the pivot minus yesterday’s low. Below it, S1 is twice the pivot minus yesterday’s high.
What should I look for with Pivot points and CPR?
Price above the CPR: buyers have the upper hand today. Below it: sellers do. A narrow CPR (TC and BC almost touching) often comes before a trending day, a bigger move one way. A wide CPR hints at a slow, sideways day. R1 and S1 are the next lines out, where traders expect a move to pause or speed up.
How can I practise reading Pivot points and CPR for free?
MarketSeekho has a free four-page chapter on Pivot points and CPR (learn, answer a question, spot it on a chart, then make a call) and daily real-chart practice graded on your reasoning. No sign-up or money needed.