At any given time, the range can be support or resistance, it can forecast trending or sideways price behavior, dictate the day's direction, or serve as an integral part of a trend.
By seeing the gap/width between TC & BC we will be able to know how the session is going to be i.e "Trending / Sideways". If the Gap is very Narrow we can expect Trending market either side. If the Gap is wide that particular session will Volatile / Rangebound market.
There are 7 CPR - Two day relationship concepts available which will indicate you the next day trend direction. (Comparing the Current session CPR with Previous Session CPR where the three lines are formed and its relationship.)
Higher Value = Bullish Overlapping Higher Value = Moderately Bullish Lower Value = Bearish Overlapping Lower Value = Moderately Bearish Unchanged value = Sideways / Breakout Outside Value = Sideways
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does trading view plot the CPR through any inbuilt indicator or do we have to calculate it ourselves?
ViVenTraders
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@imsagu, You can search in indicator, there are plenty of indicators available for CPR levels. it is not necessary to calculate manually.
ViVenTraders
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@imsagu, there are free community CPR indicators available in Tradingview
mrajamohan
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Thanks for detail explanation. Can you please explain with examples.
Higher Value = Bullish Overlapping Higher Value = Moderately Bullish Lower Value = Bearish Overlapping Lower Value = Moderately Bearish Unchanged value = Sideways / Breakout Outside Value = Sideways
ViVenTraders
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@mrajamohan, If you see in the chart, current day CPR (2nd Aug) is Higher than the previous day CPR (1st Aug) - which is the Trend is still in BULLISH and we have to look for BUY entry. Also compare the CPR of 25th July and 26th July in which 26th CPR is formed lower value CPR indicates the BEARISH trend. Check out the link in signature tab for more details about other concepts.