When I first began exploring pivots, they felt like nothing more than static numbers on a chart—lines that appeared but didn’t explain why the market moved. Support above, resistance below… it all looked mechanical.
Everything changed when I discovered the Central Pivot Range (CPR).
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This concept was invented by PivotBoss, who is also my guru. His work on CPR completely reshaped my understanding of pivots and how to read price action. The CPR became more than just a set of levels—it became a framework for analyzing market behavior.
How CPR Transformed My Trading
The CPR acts like a compass for the trading day.
- It can serve as a foundation, holding price above it.
- It can act as a barrier, capping price movements.
- Its placement often gives an early sense of the day’s bias: trending or range-bound.
By checking the CPR before the session, I gain a clear map of where key price interactions are likely to occur. This preparation is one of the biggest edges I’ve gained in my trading.
The Technical Side of CPR
The Central Pivot Range consists of three main levels:
- Central Pivot (CP) – the central level that represents the average of the prior day’s key prices.
- Top Central (TC) – the upper boundary of the CPR.
- Bottom Central (BC) – the lower boundary of the CPR.
Here’s how to calculate them:
- Central Pivot (CP): (High+Low+Close) / 3
- Top Central (TC): (CP+High+Low) / 3
- Bottom Central (BC): (High+Low) / 2
Note: Depending on the previous day’s price action, the TC and BC levels may sometimes appear swapped. To handle this, the higher level is always labeled TC, and the lower level is labeled BC. Most trading platforms do this automatically.
How to Read the CPR
- Price above TC: Indicates a bullish bias. The market may trend upward, with TC acting as the first support.
- Price below BC: Indicates a bearish bias. BC may act as the first resistance for any upward retracement.
- Price within the range (between TC and BC): Often signals consolidation or indecision. The market is testing boundaries, and breakouts are more likely to happen once price exits this range.
CPR as My Daily Roadmap
Thanks to my guru PivotBoss, I now see the CPR as more than just an indicator. It’s a roadmap, guiding me where to watch for support, resistance, and potential traps.
Every morning, checking the CPR allows me to prepare before the first trade, anticipate likely price behavior, and align my trades with the market’s pulse. It’s one of the clearest edges I’ve found in trading—and it all started with understanding PivotBoss’s invention.