Overview

Central Pivot Range (Monthly) is a powerful tool designed for swing and positon traders who rely on precision and simplicity. By calculating the Central Pivot Range (CPR) from the previous month’s high, low, and close, this indicator provides a visual framework to analyze market structure and identify key trading levels. Perfectly suited for swing and position trading, it empowers traders to anticipate market behavior and react effectively.

Plot

This indicator is optimized for swing and position trading on timeframes between 30min and daily, ensuring precise analysis for active swing and position traders.

Example:

Plot on a 1 hour chart (HOG): the consistent CPR lower relation confirms the downtrend until proven otherwise

Key Features

• Precision: Focused entirely on the Central Pivot Range for swing and position trading.
• Real-Time Adaptation: Dynamically adjusts to reflect daily market conditions.
• Versatility: Best suited for stocks, forex, futures, and other instruments.
• User-Friendly Interface: Simple to use and highly informative.

Benefits for Traders

• Identify the Central Pivot Range (CPR) to understand market bias.
• Spot reversal or breakout zones with greater accuracy.
• Enhance timing for entries and exits with clear visual levels.
• Utilize the CPR for trend and range-bound market strategies.

How It Works

The indicator calculates the Central Pivot Range (CPR) based on the previous month’s high, low, and close:

• Central Pivot (CP): (H+L+C) / 3
• Bottom Pivot (BP): (H+L) / 2 (i.e. the midpoint of the previous month)
• Top Pivot (TP): (CP – BP) + CP

These levels act as actionable zones where price activity is most likely to occur, providing traders with a consistent framework for decision-making.

Settings

• CPR: Plots the Central Pivot Range based on the previous month. This will be already available at the beginning of each month.
• LABELS: Adds clear labels to each level for easier reference.
• NEXTCPR (Optional): Shows the developing CPR for the upcoming month.

Who Can Use It?

• Swing traders who focus on entry precision.
• Position traders integrating monthly CPR into broader market analysis.
• Active traders looking for potential confluence levels

Reference

The concept of the Central Pivot Range is derived from established pivot-based trading methodologies, including those popularized by Frank Ochoa.

This indicator has been independently developed and optimized for ProRealTime users.