CPR indicator: the central pivot range explained
Part 12 of 13 in Charts and indicators
Updated 24 October 2026 · यह गाइड हिन्दी में पढ़ें →
CPR stands for central pivot range. It is a band of three lines worked out from the previous day's high, low and close: the classic pivot in the middle, one line just above it and one just below. Many Indian traders put it on their intraday charts before the market opens, next to the usual pivot levels.
If you already know pivot points, CPR is one more step. The difference is that CPR is a band rather than a single line, and the width of that band is what people watch most.
The three lines
Take the previous day's high (H), low (L) and close (C).
- Pivot (P) = (H + L + C) ÷ 3, the same central pivot as in classic pivot points.
- Bottom central pivot (BC) = (H + L) ÷ 2, the middle of the day's range.
- Top central pivot (TC) = (P − BC) + P, which is the same as 2P − BC.
TC is BC mirrored to the other side of P, so P always sits exactly in the middle of the band. When the close is in the lower half of the day's range, the formula gives a TC that is below BC. Charting platforms simply swap the two names in that case, so the higher line is always called TC.
Worked example
Yesterday Stock ABC (made-up prices) had a high of ₹520, a low of ₹500 and a close of ₹514.
- P = (520 + 500 + 514) ÷ 3 = 1,534 ÷ 3 = ₹511.33
- BC = (520 + 500) ÷ 2 = ₹510
- TC = 2 × 511.33 − 510 = 1,022.67 − 510 = ₹512.67
Today's CPR runs from ₹510 to ₹512.67, a width of ₹2.67, or 0.52% of the pivot. The classic R1 and S1 from the same numbers are ₹522.67 (2P − L) and ₹502.67 (2P − H), so the band sits well inside them.
What sets the width
Here is something most write-ups skip. Work through the algebra and the width comes out as:
CPR width = (2C − H − L) ÷ 3, dropping the minus sign if there is one.
So the width depends on two things: where yesterday's close sat inside yesterday's range, and how big that range was. For a given range, a close right in the middle gives a band of almost no width, and a close at the high or the low gives the widest band possible, one third of the range. Here is the same Stock ABC day with four different closes:
| Close | P | BC | TC | Width |
|---|---|---|---|---|
| ₹510.50 (near the middle) | ₹510.17 | ₹510 | ₹510.33 | ₹0.33 (0.07%) |
| ₹514 | ₹511.33 | ₹510 | ₹512.67 | ₹2.67 (0.52%) |
| ₹502 (near the low) | ₹507.33 | ₹504.67 | ₹510 | ₹5.33 (1.05%) |
| ₹519 (near the high) | ₹513 | ₹510 | ₹516 | ₹6 (1.17%) |
In the third row the formula gives TC = ₹504.67, below BC, so the two names are swapped as described above. The range was ₹20 in every row, so no close could have made the band wider than ₹6.67.
How traders read it
Most of what is said about CPR goes back to Frank Ochoa's book Secrets of a Pivot Boss (2010), which made the central pivot range popular. The usual readings are:
- Narrow CPR: many traders expect a day with a bigger move, on the idea that yesterday closed in balance and the band is easy to leave.
- Wide CPR: they expect a quieter, sideways day.
- Price above or below the band: described as the day trading above or below its CPR, the way people talk about price against P.
- Today's band against yesterday's: a band that sits wholly above the previous one, wholly below it, or overlapping it is read as a hint of where the average price is heading.
Treat these as habits, not rules. The width describes yesterday: where it closed and how far it moved. It knows nothing about today's results or news. A narrow CPR can be followed by a quiet day, and a wide one by a big move. The band cannot tell you which kind of day you will get.
Common mistakes
- Drawing it from today's prices. Daily CPR comes from the previous day's finished high, low and close. It is fixed before the open and does not move during the day.
- Using a different close from your chart. The last traded price and the official closing price can differ a little, and so will your P, BC and TC. Use the same source every day.
- Daily CPR on a daily chart. Daily CPR is meant for intraday charts. On daily charts people use weekly or monthly CPR, built from the previous week's or month's high, low and close.
- Forgetting gaps. If the stock opens far above or below the band, the band may not come into play at all that day.
- Treating a narrow CPR as a reason to trade. It is a description of yesterday. Plenty of narrow-CPR days go nowhere.
Try it yourself
The pivot point calculator works out P, R1 and S1 from your high, low and close. For CPR, add BC, the middle of the high and low, and then TC = 2P − BC, and you have all three lines.
The risk side
CPR is used almost only for intraday trading and F&O, and short-term trading is hard. SEBI's studies (SEBI study, 2023 and 2025) found that about 9 in 10 individual F&O traders lost money in FY22 and FY25. A band on a chart does not change those odds. If you trade, set your stop-loss and position size before you enter, and count the charges.
Questions people ask
- What is CPR in trading?
- CPR, the central pivot range, is a band of three lines worked out from the previous day’s high, low and close: the classic pivot, the middle of the range, and a third line the same distance on the other side of the pivot.
- What does a narrow CPR mean?
- It means yesterday closed near the middle of its range, or that the range was small. Many traders expect a bigger move after a narrow CPR, but the band only describes yesterday and cannot predict today.
- Why is my TC below BC?
- The formula gives a TC below BC whenever the close is in the lower half of the day’s range. Most charts swap the two names so the higher line is always TC; the band itself is the same.
- Which timeframe is CPR used on?
- Daily CPR, from the previous day’s data, is drawn on intraday charts. Weekly and monthly CPR use the previous week’s or month’s high, low and close, and go on longer charts.