Dotted Light Blue Line - CPR of Previous Timeframe
Dotted Pink Line - H1,H2
Dotted Brown Line - L1,L2
Red Line - R1,R2(Standard Floor )
Green Line - S1,S2
Pink line - H3,H4,H5
Brown line - L3,L4,L5
CPR and Third Layer of are neither abnormally wide or narrow, therefore making it hard to deduce whether the week will be trending or sideways.
CPR of this week(Width-100pts) is a little bit wider than previous week(70 pts).
Two week relationship:
Both CPR and Third layer of this week is way above their previous week, meaning the overall week is likely to be of nature.
1.) CPR and L3 are very near, meaning they can act as strong support or resistance depending on how the market open on 15th. Any time it is breached and sustained, it is a strong indication that market sentiment has changed. If the market opens near CPR and breaches it, there will be huge sell off.
2.) If market opens above or near CPR , H3 or R1 will be likely to be touched once during the week. Buy the dips near CPR .
3.) If H4 is breached, H5 should be the target.
4.) If index opens below CPR , CPR will acts as resistance and S1/L5 should be your target.