Calculate Daily & Weekly CPR Levels for Day Trading

This guide explains the CPR formula, a worked example on Nifty, how to read narrow and wide CPRs, how traders use the levels, and the limits of CPR.

The CPR formula

Using the previous day's high (H), low (L) and close (C):

• Pivot (P) = (H + L + C) ÷ 3
• Bottom central pivot (BC) = (H + L) ÷ 2
• Top central pivot (TC) = (P − BC) + P

If TC comes out below BC, swap them, so the top of the range is always the higher value.

A worked example on Nifty

Suppose yesterday Nifty had a high of 25,180, a low of 24,920 and a close of 25,060.

• Pivot = (25,180 + 24,920 + 25,060) ÷ 3 = 25,053.33
• BC = (25,180 + 24,920) ÷ 2 = 25,050.00
• TC = (25,053.33 − 25,050.00) + 25,053.33 = 25,056.67

The CPR runs from 25,050 to 25,056.67, a width of about 7 points. That is a very narrow CPR relative to a 260-point range.

Reading the CPR

Width

• Narrow CPR: often read as a sign of a possible trending day, because the previous close was close to the middle of the range and the market may be ready to move.
• Wide CPR: often read as a sign of a possible range-bound day.

Width is usually judged relative to recent CPRs or as a percentage of the price, for example a CPR narrower than its 20-day average.

Position

• Price opening above the CPR: traders lean bullish.
• Price opening below the CPR: traders lean bearish.
• Price opening inside the CPR: no clear bias until it breaks out.

Relationship to the previous day's CPR

• A CPR entirely above yesterday's suggests rising value and a bullish bias.
• A CPR entirely below suggests a bearish bias.
• Overlapping CPRs suggest balance.

How traders use CPR

1. Bias: trade long above the CPR and short below it.
2. Entries: buy on a pullback to the top of the CPR in an uptrend, or sell on a rally to the bottom in a downtrend.
3. Targets: use pivot support and resistance levels, such as R1 and S1, as targets. See the pivot point calculator.
4. Day type filter: run trend strategies on narrow-CPR days and range strategies on wide-CPR days.

Virgin CPR

A virgin CPR is a CPR that the price did not touch during its session. Some traders watch it as a level for later days.

Weekly and monthly CPR

Using the previous week's or month's high, low and close gives weekly and monthly CPRs, which swing traders use for longer-term bias.

Using CPR in automated rules

CPR levels are known before the market opens, which suits rule-based trading. For example:

• Only take long breakout trades on days when the CPR is narrower than its 20-day average and the price opens above it.
• Exit at R1, or at 3:15 pm.

QuantPower's strategy builder lets you combine price conditions with stops, targets and time exits, and the backtesting engine lets you test whether narrow-CPR days really trend more on your instrument. Pair CPR with an entry trigger such as the opening range breakout.

Limits of CPR

• It is a heuristic. Narrow CPRs do not guarantee a trend, and wide CPRs do not guarantee a range.
• Gaps change everything. A large gap at the open can make the previous day's levels irrelevant.
• Consistency matters. Index and futures data give different levels. Use one source.
• Test before trusting. Check how often narrow-CPR days actually trended in your instrument's history.

Frequently asked questions

Sources

• Murphy, J. J. (1999). Technical Analysis of the Financial Markets. New York Institute of Finance