Bravetotrade

CPR_ATR_PIVOT

Introduction

What is so special about this variation of CPR is that it combines three indicators together. It has Central Pivot Range to understand market trend and for taking entry; Average True Range Stop line to identify the stop loss for any trade keeping in view volatility of the instrument; and Standard Pivot Points for profit targets. So overall it combines all essential ingredients for trading in a single indicator.
While CPR and Pivot values will remain fixed, the ATR period and multiple can be changed.

Central Pivot Range: is a useful intraday technical indicator which comprises 3 levels – a Central pivot point ( pivot ), Top central level ( TC ), and Bottom central level ( BC ).

These levels are calculated as follows:

TC = ( PivotBC ) + Pivot

Pivot = (High + Low + Close)/3

BC = (High + Low)/2

The 3 levels are calculated using 3 variables, High, Low, and Close price. When you add CPR levels in a stock’s chart, TC is highest, the pivot is at the center and BC is the lowest level. However, depending on market conditions TC’s value may be lower than BC .

The fundamental idea behind this indicator is that the particular day’s trading range captures everything about the market sentiment, and hence this range can be used to predict the price movement of the following days.

This indicator was first introduced by Mark Fisher in this book “The Logical Trader”. Frank Ochoa added another dimension, central pivot point to this indicator.

Practical Applications:

CPR Breakout:
Any high volume breakout above or below the TC and BC lines respectively indicates a high probability that the movement will continue.

CPR Width
The width of the CPR lines very accurately gives an idea of the expected price movement. If CPR width is narrow, that is the distance between TC and BC lines of CPR is very low, then it indicates a trending market. While if the distance between TC and BC lines is relatively higher it indicates sideways market.

CPR as Support and Resistance
CPR lines can also act as support and resistance . Market may takes support or resistance at the CPR and reverse.

ATR Stop: I am adding another useful indicator known as ATR stop with CPR . Once market takes support and resistance at the CPR , trade can be taken with stoploss under/above (as the case may be) the ATR stop line. It would help in absorbing the intraday volatility in a stock or instrument.

Pivot Points: Pivot points can be taken as target points where partial or full profit (depending upon market conditions and momentum) can be taken.

I hope this indicator would help some traders in taking better trading decisions.
Regards
jjsingh_2020
Remove from Favorite Scripts Add to Favorite Scripts

Comments

what is nz in your code
Reply
Bro,
Trust me I have been looking for this from many days. I can't thank you enough. Can you please confirm where do search this in trading view? Sorry. I am a New B so asked.

God bless
Reply
Today CPR levels are narrow. Means it should be a trending day. Let's see how it picks direction.

Reply
Bravetotrade Bravetotrade
@Bravetotrade, The move upto S1 was trending, then it reversed
Reply
Hi,
Thanks for the info.
This can be used to trading indices or stocks also?
Reply
Bravetotrade manteshmh
@manteshmh, Can b used for Trading anything.
Reply
Let's do a live example. If we notice the CPR for the last 3 days, the range has been quite narrow indicating trending days. Also CPR is shifting down every day which indicated downtrend. But today the range between CPR levels is wider which suggests that today may happen to be a range bound day. I will come back at 3:15pm to check if that was true.

Reply
Bravetotrade Bravetotrade
@Bravetotrade, It proved to be a range bound session. CPR is working. Morning range intact.
I ll keep on sharing live analysis time to time.
Reply
Hai Sir,
Its really useful. Can you explain setting of script ie.,
JATR Period?
JATR Multip?

How to use it??
Reply
Bravetotrade Unasmohammed
@Unasmohammed, Keep it default. It ll work.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out