The Central Pivot Range (CPR) is among the most versatile support and resistance indicators used by professional floor traders in Indian markets. Composed of the Pivot (P), Bottom Central (BC), and Top Central (TC), the width of CPR predicts whether the market will trend or remain rangebound.
Wide CPR vs Narrow CPR
- Narrow CPR: Indicates high probability of an explosive trending day. Breakouts from the opening range frequently yield 1:3 risk-to-reward ratios.
- Wide CPR: Signifies an expected rangebound, choppy session where option sellers profit from time decay between CPR support and resistance boundaries.
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