The CPR consists of three components –
( PP )
Bottom Central ( BC )
Top Central ( TC )
These are derived out of the underlying’s High, Low, and Close calculations –
= (High + Low + Close)/3
Bottom CPR = (High + Low)/ 2
Top CPR = ( – BC ) +
CPR helps you identify the S&R pattern
It is considered if the current market price is higher than the UT line.
It is considered if the current market price below the DT line.
if 20 SMA above the 50 SMA and on the same time index or stock trading above CPR levels means up trend for intraday
if 20 SMA below the 50 SMA and on the same time index or stock trading below CPR levels means down trend for intraday
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