Central Pivot Range (CPR) Indicator Explained -- with David Moadel
hey everybody this is David Modell looking at the markets going to give you
a brief introduction or explanation of CPR no not the medical CPR talking about
central pivot range the CPR indicator I'll show you very briefly how it's
calculated you don't really need to know how it's calculated or at least you
don't have to memorize it but it is good to at least understand what it is and
then I'll show you what that might look like and where to find it because it's
not easy to find on the internet necessarily so calculating the three CPR
pivot points and it's a lot not a lot like but kind of similar to pivot points
traditional pivot points and I made a video on that and I'll put a link to
that in the description below this video if you want to check out my older
traditional video on pivot points the traditional pivot points there are five
of them but with the CPR central pivot range indicator the basic format has
three all right so calculating the three CPR
pivot points is based on the previous day's price ranges so you got your pivot
and that is calculated by the high and this is from the previous day okay so
look at the you know yesterday's prices you take the yesterday's high plus
yesterday's low and yesterday's closing price add them all up and then take that
number and divide by three that's your pivot for today then to calculate your
bottom central pivot which is below the pivot that is yesterday's high plus
yesterday's low price add them up and then take that number and divide by two
and then to get the upper line the top central pivot you take the pivot you
know the the middle line which you already calculated above and then you
subtract the bottom central pivot which you already calculated subtract and then
whatever number you get now you
add the pivot all right so that's the top line there will be three lines all
right and I'll show you what that looks like in a moment and where to find it
but by the way a lot of people ask me for a coaching for help with their
trading or investing if you'd like some help with that you can email me at David
Modell at gmail.com for the coaching all right so where do you find this it's not
easy I mean if you google it you know maybe your trading platform has it
that's great if not then you can go to trading view trading view calm trad ing
VI e WM want to give them credit I use them quite a bit and it's there's a free
version here which I'm using right now and you go to the front page where on
the home page here and you see the search box alright well you see how it
says ticker first you have to change that alright you click on ticker and
from the drop down menu you go to scripts alright scripts and click on
that now you're going to do a script search alright so first let's try well
let's type it in okay so I'm gonna you either copy and paste it or you could
you could type it in either way central pivot range and then search and now I
cannot vouch for any of these I cannot guarantee that any of these work okay
these are submitted by people who are coders and you know script writers so
these are user generated scripts I cannot guarantee any of them although
the one that I found to be pretty good in my opinion again no guarantees it's
by sure wind sure windy St developing central pivot range and I'm gonna click
on that one here it is and this individual has
applied it to the its Forex currency pairs the URL against the dollar all
right and notice that yeah three lines you know one two three all right you got
your top your bottom and then you your middle pivot there all right three
lines and then when the you know when it changes it goes to three different
prices and when it changes goes to three different prices and so on okay so what
you can do is and you could make it a monthly pivot you can make it a daily
pivot whatever you like all right I've seen you know you could
conceivably perhaps use it for shorter timeframes you could try it out although
I usually have seen it for daily you know they change the price every day or
you could change it every week or every month whatever you like totally your
choice you might have to modify the script what I like about this one is
that you can see it whoops you can see it right there in the script there it is
right the pivot high plus low plus closed divided by three and then you got
your bottom right and then your top and that's that's the formula that we know
so you know if you're going to use a script check the formula make sure that
it is accurate all right and then adjust it to the timeframe that you like so how
do you use the three lines well there's no definite way of using it a lot of
people use the pivot you know just like traditional regular pivot points a lot
of people use them as support and resistance all right
so for example if the price is down here and then if it breaks through the bottom
of the three lines the bottom pivot or the lower pivot if it breaks through it
strongly if it closes above it with heavy volume then your you might go long
with your you know your target your your profit target being you know the the
line above it which really the mid line here
okay the central pivot middle pivot point and then if it keeps going with
volume and momentum above that then your next target price target might be the
top line here okay or if you're shorting the other way around
if the price falls hard and fast and with heavy volume you know below this
upper line here then you might take a short position
now shorting is not for most people shorting can be a dangerous game can be
risky so please be careful with shorting and you don't have to do it at all by
the way if you don't want to that's okay but if you are the type of person who
you know if you like to go short if you're willing to take that risk then if
it goes below this one with a lot of volume and closes below it strongly
perhaps with a big red candle then you might take a short position with your
profit target at the mid line and if it keeps going down further then your
profit target might be that bottom line so you know again support and resistance
levels that's one way to use it you know you can interpret these lines however
you like it's it's a lot like again you know regular traditional pivots in some
ways now what I like about the traditional pivots is that oftentimes
you'll get five lines instead of just three and when you have five lines five
pivot points then you can use them it's easier to use them not only as profit
targets but also you can use them as stop losses it's not so easy when you
only have three lines to you know figure out what your stop-loss is going to be
necessarily all the time so that's something to think about but this is you
I think it can be useful these three lines again just for interpretation
nothing works perfectly okay another script you might want to consider excuse
me you might want to consider if you go back to trading view here's the home
page again not ticker you're searching for scripts if a range
whoops a row trivet range if I could since I could type pivot range
there we go search and there was another one that I kind of liked let me see if I
could find it here it is yeah this one by Christian dot D I kind of like this
one as well again I cannot guarantee that any of these work perfectly okay
so here's another script and you know you always want to check the script
make sure and hear it here's the script and again the formulas you know that's
what I'm looking for you want to check the formulas in the
script make sure that it's a that's accurate okay and so you know kind of
similar concept here interestingly sometimes the three you know the three
lines might be very close together so it might be hard to hard to work with
it sometimes okay so that's something to think about all right and so this is on
a shorter time range than the the previous example this is from Apple okay
so I hope this was helpful to you alright just an introduction be careful
with any script know what you're doing and you really have to make the final
decisions yourself but if you do want to mentor just for you know help with
trading and investing helping you to you know put together your own trading or
investing plan because you really want to have a plan you can email me for the
coaching at David Modell MOA de L at gmail.com and if you like this video
please give it a thumbs up right now and subscribe to my youtube channel and hit
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you'll be updated whenever I put out new videos like this one hey thanks a lot
for watching and listening I'll talk to you again soon