Why do investors use CPR indicator?

Investors use the CPR indicator to determine key points of price levels and take trading positions accordingly. It is highly popular among stock market investors as it is quite simple and versatile. CPR indicator comprises three levels pointed on a chart.

What does CPR mean in trading?

It usually indicates a sideways trend for the next day. Similarly, a narrow trend of the previous day makes the CPR width narrower, which would further indicate a trending market. The central pivotal ranges help the trader to act either as a support or as a resistance depending upon the market trend.

What happens if a stock is not able to reach CPR levels?

It is observed that when a stock is not able to touch its previous day’s range, there is a 40% possibility that the stock would not touch the CPR levels for the whole day. Virgin CPR indicator can indicate a powerful resistance or support level. In case a stock breaks the TC or BC lines, it is referred to as the CPR breakouts.

What is a CPR chart?

A CPR chart allows traders to technically analyze the market in different ways. It happens according to its width, breakouts, support and resistance levels, virgin CPR, overall trend, etc. to study the price movements and continue the trade. The overall market trend can be bullish or bearish.