What is CPR in Trading? The Central Pivot Range Strategy Explained for Intraday Traders

Why CPR Strategy is Popular Among Intraday Traders

Intraday traders are always looking for tools and strategies that provide clarity, accuracy, and confidence while taking trades. One such widely used and highly reliable method is the Central Pivot Range (CPR) trading strategy.

If you are a beginner or an experienced trader looking to improve your intraday performance, CPR can act as a roadmap for the market trend. It helps in identifying whether the market is trending or sideways, and provides exact entry and exit points for stocks, index futures, and options.

At Stockfyre Academy — one of the top 10 stock market training institutes in Lucknow — we train traders and investors on advanced CPR strategies that can help you trade confidently and profit consistently.

What is CPR in Trading?

The Central Pivot Range (CPR) is a set of three pivot levels plotted on the chart:

• Pivot Point (P)

• Top Central Pivot (TC)

• Bottom Central Pivot (BC)

These three levels act as the intraday support and resistance zones, giving traders a clear picture of whether to look for buying or selling opportunities.

In simple words: If price stays above CPR, the trend is bullish. If it stays below CPR, the trend is bearish.

Why is CPR Important for Intraday Traders?

1. Trend Identification: Helps you know if the day will be trending or sideways.

2. Clear Support & Resistance: CPR levels act as strong zones for entry and exit.

3. High Accuracy: Works on Nifty, Bank Nifty, and individual stocks.

4. Easy to Learn: Even beginners can understand CPR within a few days.

5. Works Well with Other Indicators: Combine CPR with EMA, RSI, or Volume for better confirmation.

CPR Trading Strategies You Must Know

1. Narrow CPR with R1–S1 Breakout Intraday Strategy (Trending Market) CPR (Trending Market)

A narrow CPR indicates that the market is likely to experience strong trending moves during the day. This makes it one of the most powerful setups for intraday traders.

Here’s how you can trade it:

1. Identify Narrow CPR: If the distance between TC (Top Central Pivot) and BC (Bottom Central Pivot) is very small, it signals a narrow CPR.

2. First 5-Minute Candle Rule: Wait for the first 5-minute candle after market open.

   • If it closes above R1, the market bias is bullish → look for long trades with target at R2, R3.

   • If it closes below S1, the market bias is bearish → look for short trades with target at S2, S3.

3. Stop Loss Placement: Keep SL just below CPR (for long trades) or above CPR (for short trades).

4. Volume Confirmation: Always confirm breakout with volume for higher accuracy.

2. Wide CPR (Sideways Market)

• When CPR is wide, market likely stays range-bound.

• Best suited for option sellers and scalpers.

3. CPR Breakout Strategy

• If price crosses CPR with volume and retests, it often leads to a strong directional move.

CPR in Real Trading – Example

Suppose Nifty opens above CPR with a strong green candle and sustains — this indicates a bullish bias. You can look for buying opportunities above R1 (first resistance).

If Nifty opens below CPR and stays there, the bias is bearish, and you can look for selling opportunities near S1 (first support).

Learn CPR and Advanced Strategies with Stockfyre

At Stockfyre Academy – the best stock market institute in Lucknow, we provide:

• Offline and online stock market training programs (basic to advanced).

• Live market practice sessions.

• Intraday trading setups (CPR, Price Action, Options, Futures).

• Personalized mentorship to make you a confident and profitable trader.

Whether you’re a beginner or an experienced trader, our structured training helps you trade like a professional.

FAQs on CPR in Trading

Q1: Is CPR strategy suitable for beginners?
Yes! CPR is one of the easiest yet most powerful strategies for beginners.

Q2: Can CPR be used in options trading?
Absolutely. Many Bank Nifty and Nifty option traders rely on CPR for intraday setups.

Q3: Which time frame is best for CPR strategy?
The 5-minute time frame is most commonly used for intraday CPR trading.

Q4: Does CPR work in all market conditions?
It works best in trending conditions (narrow CPR) but also gives clarity in sideways markets (wide CPR).

Q5: Is CPR strategy enough for trading?
It’s highly effective, but combining CPR with volume, candlestick patterns, and EMA gives better accuracy.

Conclusion

The Central Pivot Range (CPR) strategy is one of the most reliable and beginner-friendly methods to identify market trends and intraday trade opportunities. It simplifies trading by giving clear trend, support, and resistance zones.

If you’re serious about trading and want to master strategies like CPR, join Stockfyre Academy — the best stock market institute near you in Lucknow, offering offline and online stock market courses tailored for both beginners and professionals.

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