TL;DR
CPR (Central Pivot Range) is a three-level daily price zone — Pivot, Top CPR (TC), and Bottom CPR (BC) — calculated from the previous session’s high, low, and close, which tells traders where the market’s key decision zone sits before the session opens.
What Is CPR (Central Pivot Range)?
The Central Pivot Range is a price-based analysis framework that defines a zone — not a single level — around which the market makes its directional decision each session. Unlike a single pivot point, CPR gives you a range with two boundaries: the Top Central Pivot (TC) above and the Bottom Central Pivot (BC) below. The space between TC and BC is where price frequently consolidates before committing to direction.
CPR is calculated entirely from the prior session’s OHLCV data, making it a forward-looking tool that traders apply to the next session. A narrow CPR (small gap between TC and BC) signals that the prior session was decisive — trending sessions tend to produce narrow CPRs, which often predict continued trending behavior. A wide CPR signals an indecisive prior session and often precedes a choppy or range-bound day.
The framework extends beyond the central range to include traditional pivot levels (R1, R2, R3 above; S1, S2, S3 below), which act as dynamic support and resistance levels. Professional traders use CPR on daily, weekly, and monthly timeframes — each timeframe’s CPR creates a distinct level that can act as a magnet or repulsion zone for price.
Key Formula / Numbers
Pivot Point (P) = (High + Low + Close) / 3
Top Central Pivot (TC) = (Pivot - BC) + Pivot
Bottom Central Pivot (BC) = (High + Low) / 2
Traditional Levels:
R1 = (2 × Pivot) - Low
R2 = Pivot + (High - Low)
S1 = (2 × Pivot) - High
S2 = Pivot - (High - Low)CPR Width Classification:
| CPR Width | Market Expectation |
|---|---|
| Very narrow (<0.3% of price) | Strong trending day likely |
| Narrow (0.3–0.6%) | Moderate trend or early breakout |
| Wide (0.6–1.2%) | Choppy, range-bound day likely |
| Very wide (>1.2%) | High indecision; avoid aggressive trades |
How Quantzee Uses This
Quantzee’s CPR ThetaEdge indicator builds the complete CPR framework directly onto TradingView charts — daily, weekly, and monthly CPR levels calculated automatically, color-coded by width, and updated at each session open without requiring manual input. The “ThetaEdge” component overlays options theta decay context on CPR levels, giving options sellers a unified view of price structure and time-value decay in a single indicator. Non-repainting signals mean the levels you see at session open are the levels the indicator will show historically — no retroactive adjustments, no hindsight.
Common Mistakes
- Trading inside the CPR zone: The range between TC and BC is a decision zone, not a trading zone. Chasing entries while price is inside a wide CPR leads to whipsaw losses. Wait for a confirmed break of TC or BC before taking directional trades.
- Using only daily CPR: Professional CPR traders stack timeframes — daily CPR for intraday direction, weekly CPR for swing bias, monthly CPR for positional context. A price level that aligns across all three timeframes is a high-conviction zone.
- Ignoring CPR width: Entering a trending strategy on a wide-CPR day is a common error. CPR width is a session quality filter — narrow CPR favors trend entries; wide CPR favors mean-reversion setups.
Related Terms
FAQ
What does CPR stand for in trading?
CPR stands for Central Pivot Range — a three-level price zone (Pivot, TC, BC) calculated from the prior session’s high, low, and close, used to identify the key decision level for the current session.
How is CPR different from a standard pivot point?
A standard pivot point is a single level; CPR gives you a range with two boundaries (TC and BC), which better represents the price zone where market direction is likely to be decided rather than a single line that price may or may not respect.
What does a narrow CPR mean?
A narrow CPR indicates that the previous session was trending and decisive — narrow CPRs tend to predict continuation behavior in the next session, making them favorable for trend-following entries.