In the world of trading, simplicity often wins. One of the most visually intuitive tools I’ve adopted is the Central Pivot Range (CPR), developed by my mentor, Pivotoss. Unlike traditional pivot points that only plot the central pivot (CP), CPR combines three lines:
- TC (Top Central) – the top of the range
- CP (Central Pivot) – the traditional pivot line
- BC (Bottom Central) – the bottom of the range
Together, these lines form the Central Pivot Range, which not only highlights key support and resistance but also acts as a reliable trend detector.
How to Use CPR for Trend Detection
The concept is straightforward:
- Bullish Trend: When the current CPR is higher than the previous CPR, it signals upward momentum.
- Bearish Trend: When the current CPR is lower than the previous CPR, it indicates downward momentum.
By simply plotting CPR on your charting platform, you can instantly visualize the trend without complicated indicators or lagging signals. It’s elegant, clean, and highly effective.
Why CPR Works
Unlike many traditional indicators, CPR reflects the market’s psychological equilibrium. The position of the current range relative to the previous range shows whether buyers or sellers are in control.
In the chart above, you can see how price respects these levels, making it easier to align your trades with the underlying market trend.
Takeaway
Whether you are a day trader or swing trader, plotting the CPR can simplify your trend analysis and help you stay on the right side of the market. A quick glance at how the current CPR compares to the previous one can save hours of technical clutter.