How to Trade Intraday with CPR Indicator
The number of people trying their hands on intraday trading has increased exponentially during the pandemic. Yet 89% of them lose money (Recent SEBI report). There’s a high chance that most of these traders may not have opted for online intraday trading courses.
Good courses on intraday with the CPR indicator can not only give you a walkthrough of the indicator, but how to use it in conjunction with others as well. Today we will look at the CPR indicator that will help you in your trades.
What is a CPR Indicator?
CPR aka Central Price Range is a widely used indicator in the trading fraternity. Traders use this indicator to set up important price levels for their trade. It is also used to understand the strength of the market trend and is sometimes used to predict the trend.
Deciphering the CPR indicator includes working with technical indicators, support and resistance levels, and candlestick chart patterns. Each tool complements the other in determining the entry and exit points.
How to Calculate the CPR Indicator?
CPR calculation is not as complex as it looks. The indicator incorporates recent highs, lows, and closing price. It is denoted by three lines. Each line is known by a different name and has its own interpretation.
The lines are known as Pivot Point, Top Central Pivot, and Bottom Central Pivot. Each line is determined by a different calculation and has its own significance. Below are the calculations:
- Top Central Pivot = (Pivot – Bottom central) + Pivot
- Pivot = (Close + low + high) / 3
- Bottom Central Pivot = (Low + High) / 2
Trade Intraday Using CPR
As discussed before, CPR helps an individual to determine the trend of the market – bullish or bearish. CPR indicators make it much easier to interpret and help you to plan your intraday trade. You just have to enter the CPR indicator and the trading software will do the calculations.
Below is the interpretation of the CPR setup to up your intraday trading::
- If the CPR line is upward-sloping or creates a rising trend, the market is about to turn bullish
- If the CPR line is signaling a falling trend, the market is about to turn bearish
There are also various other ways to interpret CPR based on its value like price trading above the TC level, Virgin CPR, etc.
Learning CPR indicator
There are many stock market technical analysis courses available in the market. Many providers have different ways of presenting the course content.
Upsurge.club has beautifully crafted intraday trading courses and also gives you the setup of live trading. It offers content like:
- Become proficient with intraday trading with CPR
- Trade with confidence on an intraday basis
CPR indicator has its own importance in determining the dynamics of the market, and if used with other indicators can be a great tool to complement your trading.
Trading platforms will help you plot the CPR indicator without doing the math by simply typing it and analyzing your trade efficiently before executing in live markets.