CPR — The Complete Central Pivot Range Guide

What is CPR?

CPR — the Central Pivot Range — builds three lines from the previous day's High (H), Low (L), and Close (C): the Pivot (P), the Bottom Central (BC), and the Top Central (TC). The formulas are simple:

The band between TC and BC is the "central pivot range" — the day's fair-value zone, where buyers and sellers are considered to be in balance.

The three lines explained

Each line has its own meaning, and whether price sits above, inside, or below the range sets the tone for the whole day.

• Pivot (P)

  The day's centre of gravity and most important reference. Price holding above it favours bulls; holding below favours bears.

• Top Central (TC)

  The upper edge of the range. In an uptrend it acts as the first resistance; a close above it signals a bullish breakout.

• Bottom Central (BC)

  The lower edge of the range. In a downtrend it acts as the first support; a close below it signals a bearish breakdown.

Narrow CPR vs Wide CPR

The width of the CPR tells you a lot about the day ahead. The gap between TC and BC is the real signal.

Virgin CPR

A Virgin CPR is a level that price has not yet touched or tested all day. It acts like a strong magnet — price often comes back to test it.

Pivot support / resistance levels

Alongside the CPR come the R1-R3 and S1-S3 levels derived from the pivot. Use them to place targets and stops.

Typically R1/S1 are the first targets, with R2/S2 or R3/S3 as extended targets on strong trend days. Booking partial profits at these levels is sensible.

The CPR Breakout method (Dinesh's edge)

A simple, rule-based approach that filters out false breakouts to catch the genuine directional move.

1. 1

   Wait for a 5-minute candle to CLOSE above the CPR top (BUY) or below the CPR bottom (SELL). Not just a spike — you need a full close.

2. 2

   Whipsaw filter: the breakout must clear the level by at least 0.25×ATR(14), otherwise treat it as noise and skip it. This keeps you out of fakeouts.

3. 3

   Use the 21-EMA or VWAP as a trailing stop — stay in the trade as long as price holds on the right side of it.

4. 4

   Targets: R1 / previous-day high for longs, S1 / previous-day low for shorts. Book partial profit at the target and let the rest trail.

VWAP confluence for options

For options, an index breakout alone isn't enough — the premium has to move with you too. Adding VWAP improves entry quality.

• •Go long only when the index's 5-minute candle closes above VWAP AND the 100-point ITM call is also trading above its own session VWAP.
• •Place the stop-loss at the low of that breakout candle — clean, tight, and rule-based.
• •Aim for at least a 1:2 risk-reward; for every unit of risk, target at least twice as much potential reward.

Combine with Open Interest

Pairing CPR with option-chain data makes your confirmation even stronger.

Risk management and discipline

No edge works unless risk is under control. Risk only a small fixed slice of your capital on any trade (position sizing), respect the stop-loss, and never widen it. Consistent rule-following is the real key to long-term profitability.