Central Pivot Range
Reading the Market's Range: A Trader's Guide to CPR
Central Pivot Range turns yesterday's high, low, and close into today's map — for intraday options and for building long-term positions. Here is the complete, step-by-step method.
What CPR actually measures
Unlike a classic single-point pivot, CPR plots a range — three levels derived from the prior session — so you can see market balance at a glance.
The width of that range tells you as much as the levels themselves. A narrow range means the previous session found consensus quickly and today is primed to move. A wide range means participants disagreed all day, and today will likely chop sideways inside it.
Calculating CPR by hand
Say the Nifty's previous session printed High 24,350 · Low 24,100 · Close 24,250. Here is what today's CPR looks like:
Derived levels for today's session
The CPR here (BC 24,225 to TC 24,241.7) is only about 17 points wide on an index trading near 24,200 — a narrow CPR, so today is a candidate for a trending, directional session rather than a choppy one.
The six CPR types, and what each one means
Before acting on any CPR level, classify today's range against yesterday's. This single check does most of the work in deciding whether to expect a trend day or a range day.
Narrow CPR
TC and BC sit very close together → high chance of a trending move today; favours directional option buying.
Wide CPR
TC and BC spread far apart → expect a choppy, range-bound session; favours spreads over naked buying.
Higher Value CPR
Today's entire CPR sits above yesterday's → bullish handover; bias toward longs.
Lower Value CPR
Today's entire CPR sits below yesterday's → bearish handover; bias toward shorts.
Unchanged CPR
Today's CPR nearly overlaps yesterday's → indecision carried forward, often a sideways day.
Outside Value CPR
Today's CPR fully engulfs yesterday's → volatility expansion; often a potential trend reversal point.
Inside Value CPR
Today's CPR sits entirely inside yesterday's → volatility contraction, coiling before a breakout; watch closely for the next session's directional move.
Narrow/Wide describes the range's size on its own. Higher/Lower/Unchanged/Outside/Inside describes how today's range sits relative to yesterday's. Use both together — for example, a narrow, higher-value CPR is one of the strongest bullish trend-day setups, while a wide, unchanged CPR is a strong signal to stay out entirely.
Step-by-step: CPR for intraday options
This sequence follows the price-action approach popularised in India by Gomathi Shankar (CPR by KGS, Scalpers Trading Academy) — pure price structure, no Greeks or open interest required.
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Read the CPR width, before the open
Plot yesterday's CPR before 9:15 AM. Narrow CPR → expect a trending day, favouring directional option buying. Wide CPR → expect a range-bound day, favouring option-selling spreads over naked buying.
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Compare today's CPR to yesterday's
A higher-value CPR (shifted up versus the prior day) signals bullish bias; a lower-value CPR signals bearish bias. Overlapping or unchanged CPRs signal indecision — lower conviction for either side.
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Mark every level pre-market
Plot Pivot, TC, BC, and R1–R3 / S1–S3 on the chart, along with the weekly and monthly CPR for broader context, before the first candle forms.
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Let price declare its zone
Sustained trade above TC → long-only bias for the session. Sustained trade below BC → short-only bias. Price stuck inside the CPR band itself is a no-trade zone — sit out.
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Wait for a candle close, not a touch
The core discipline of this method: don't react to price merely poking through TC or BC. Wait for an hourly (or your chosen timeframe's) candle to close beyond the level. This filters out the whipsaws that happen inside the CPR zone.
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Structure the options trade with defined risk
Once the close confirms direction, favour spreads over naked buying — a bull put spread on a confirmed bullish close, a bear call spread on a confirmed bearish close. For weekly options, the same logic applies against the weekly CPR: an hourly close beyond it triggers the spread. Size the position by margin required and return on capital, not by conviction alone.
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Use R1/R2/R3 or S1/S2/S3 as your roadmap
These become your logical booking and trailing points as the move develops — shift your stop up (or down) as each successive level is cleared and closed beyond.
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Manage risk against the CPR itself
Place your stop just inside the CPR band. If price re-enters the CPR after breaking out, treat the setup as failed and exit — a return into the range usually means the breakout has lost conviction.
This is a pure price-action framework — no Greeks, no open interest reading required to generate the signal. If you are selling options against it, still track implied volatility and time decay separately when sizing the position; CPR tells you direction and structure, not volatility risk.
Step-by-step: CPR for long-term investing
CPR is built for intraday structure, but the same logic extended to higher timeframes gives long-term investors a framework for entries and accumulation zones.
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Switch to the monthly CPR
Instead of the daily range, calculate CPR from the previous month's high, low, and close on the stock you're evaluating.
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Flag narrow monthly CPRs
A narrow monthly CPR suggests potential for a strong multi-month trend. Shortlist the stock for accumulation if the fundamentals also support it.
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Confirm structure over several sessions
Price sustaining above the monthly TC across multiple sessions confirms a structural uptrend — this favours staggered buying into the stock rather than a single lump-sum entry.
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Overlay fundamentals
CPR only reads price structure. Pair it with earnings growth, return on equity, debt levels, sector positioning, and relative valuation (P/E, P/B versus peers) before committing capital long-term.
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Use monthly S1–S3 as accumulation zones
During broader corrections, monthly support levels are logical zones to add to a position; monthly resistance levels are logical zones to book partial profit — while holding the core position for the long term.
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Reassess every month
Watch whether the monthly range is widening (the trend may be maturing or losing steam) or staying narrow (the trend remains intact), and adjust conviction accordingly.
| Aspect | Intraday / options | Long-term / positional |
|---|---|---|
| Timeframe used | Daily & weekly CPR | Monthly CPR |
| Trigger | Candle close beyond TC/BC | Sustained close above/below TC over sessions |
| Instrument | Spreads (bull put / bear call) | Direct equity, staggered entries |
| Supporting input | None needed — pure price action | Fundamentals: earnings, ROE, valuation |
What CPR won't tell you
- CPR works best alongside volume and a broader trend filter — the 20/50 EMA on your 5-minute or 15-minute chart for intraday trades, or on the daily/weekly chart when using CPR for long-term positioning. Used alone, CPR can whipsaw on low-volume or event-heavy days.
- Budget day, RBI policy announcements, and results season sessions distort the normal CPR read — treat these days with extra caution.
- Weekly options now expire on fewer days, so theta decay accelerates quickly — entries confirmed by a candle close still need to be timely.
- No indicator guarantees a win rate. Position sizing and stop-loss discipline matter more than any single entry signal, CPR included.
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