Pivot points and CPR (Central Pivot Range): formula, narrow CPR and how to trade them
What are pivot points and the CPR?
Pivot points are price levels calculated from the previous session's high, low and close. Floor traders on exchanges used them for decades to frame the day before it began. The Central Pivot Range (CPR) is a three-line band around the main pivot that has become one of the most popular level tools among Indian intraday traders, especially for NIFTY and BANKNIFTY.
Because every trader can calculate the same levels from public data, pivots and CPR become reference points that many people watch. That shared attention is part of why price often reacts near them. They are not magic lines; they are a map of where yesterday's balance was.
BC = (Previous High + Previous Low) ÷ 2 · TC = (P − BC) + P
R1 = 2P − Previous Low · S1 = 2P − Previous High
R2 = P + (High − Low) · S2 = P − (High − Low)
R3 = High + 2 × (P − Low) · S3 = Low − 2 × (High − P)
The pivot point formula, step by step
The three CPR lines
- Pivot (P): the average of yesterday's high, low and close.
- Bottom Central (BC): the midpoint of yesterday's high and low.
- Top Central (TC): the pivot reflected on the other side of BC. If TC comes out below BC, traders simply swap the labels so TC is the upper line.
Support and resistance
R1, R2, R3 above and S1, S2, S3 below come from the floor-pivot formulas shown above. R1 and S1 are the closest and most frequently tested.
Illustration
Yesterday NIFTY: high 24,300, low 24,100, close 24,250. P = 74,650 ÷ 3 ≈ 24,217. BC = 24,200. TC = (24,217 − 24,200) + 24,217 = 24,234. CPR width ≈ 34 points. R1 = 2 × 24,217 − 24,100 = 24,334. S1 = 2 × 24,217 − 24,300 = 24,134.
How to read the CPR
Price above or below CPR
Opening and holding above the CPR suggests buyers accepting higher prices than yesterday's balance; holding below suggests sellers in control. Price inside the CPR is neutral.
Narrow CPR vs wide CPR
A narrow CPR forms when yesterday's close was near the midpoint of its range. It shows a balanced, often low-range day yesterday, and traders watch it because a balanced day is often followed by a range expansion or trending day. A wide CPR shows yesterday's close far from its midpoint, often after a trending day, and is commonly followed by a more rotational, sideways session. These are tendencies, not rules.
CPR relationship between days
Today's CPR higher than yesterday's suggests an upward value migration; lower suggests downward. Overlapping CPRs suggest balance.
Virgin CPR
A CPR that price did not touch during its session is called a virgin CPR. Traders treat it as an untested level that may attract price later, similar to an untested point of control.
Best pivot settings for NIFTY intraday
| Type | Built from | Use |
|---|---|---|
| Daily CPR + floor pivots | Previous day H, L, C | 5- and 15-minute intraday |
| Weekly CPR | Previous week | Swing context; weekly expiry planning |
| Monthly CPR | Previous month | Positional view |
| Camarilla pivots | Previous range × multipliers | Tighter levels for range days |
For NIFTY spot vs futures, use one consistently. Futures carry a premium (basis), so their pivots sit a little higher; see futures basis and rollover. Most intraday traders use daily levels on a 5-minute chart and keep the weekly CPR in view for context.
CPR trading strategy ideas (educational)
1. Open relative to CPR
An open above TC with price holding above it in the first 15 to 30 minutes is read by many as an up-bias day; an open below BC that holds, a down-bias day.
2. Narrow CPR breakout days
On narrow CPR days, traders often watch for price to leave the CPR and the opening range decisively, then use R1/S1 and R2/S2 as reference targets.
3. Wide CPR range days
On wide CPR days, the range between S1 and R1 often contains much of the session. Fading the edges, with tight invalidation, is the common study.
4. Retest of CPR
After a breakout away from the CPR, a pullback that holds TC from above (or BC from below) is a classic continuation pattern traders watch.
Real vs weak reactions at pivot levels
A pivot level by itself does not stop price. Reactions are more likely when the level lines up with something else: the previous day's high or low, a volume profile value area edge, a round number, VWAP, or a liquidity pool of resting stops.
Weak reactions happen when price slices through a level on expanding volume, or when the level sits in the middle of a trending move with no confluence. On trending days, price may run through R1, R2 and R3 with barely a pause.
Combining CPR with volume and footprint
The footprint chart shows what happens at the level. When price reaches R1 and the footprint shows heavy buying being absorbed without progress, sellers are defending the level. When price pushes through R1 with stacked buying imbalances and rising cumulative delta, the level is being accepted.
Pairing CPR with the previous day's value area gives two independent views of yesterday's balance: one from price arithmetic, one from where volume actually traded.
Worked NIFTY example (illustration)
Illustration with plausible numbers. Using the earlier levels: CPR 24,200 to 24,234, R1 24,334, S1 24,134. The CPR is narrow (about 34 points), so a trader expects possible range expansion.
NIFTY opens at 24,245, above TC, and the first 15-minute low holds at 24,236. At 10:15 price breaks the opening range high with strong volume and positive delta and reaches R1 at 24,334 by 11:30. Footprint shows absorption at 24,335, and price pulls back to 24,290 before trending again after 14:00 to 24,380, near R2. Trading F&O carries a high risk of loss; this example only illustrates how levels frame a session.
Common pivot and CPR mistakes
- Treating every pivot level as a reversal point.
- Mixing spot and futures levels on the same chart.
- Ignoring the day type: narrow vs wide CPR changes expectations.
- Plotting too many pivot systems at once and seeing levels everywhere.
- Forgetting that gaps can open the day far beyond R1 or S1, making the closer levels irrelevant.
Seeing it on the TradingMarble chart
On the TradingMarble chart you can show daily and weekly pivots and CPR on NIFTY, BANKNIFTY and F&O charts, together with the footprint and volume profile. This lets you study how buyers and sellers behave when price reaches each level. See the features page.
Pivot points and CPR checklist
- Is today's CPR narrow or wide?
- Is it higher, lower or overlapping with yesterday's?
- Where did price open relative to the CPR?
- What confluence exists at R1/S1?
- Does the footprint show acceptance or rejection at the level?
The central pivot range and pivot points give you a ready-made map of the session; volume and order flow tell you which lines matter today.
Frequently asked questions
What is CPR in trading?
CPR stands for Central Pivot Range. It is a band of three levels, the pivot, top central (TC) and bottom central (BC), calculated from the previous day's high, low and close. Traders use it to judge bias and expected day type: price above CPR suggests buyers in control, below suggests sellers.
What does a narrow CPR mean?
A narrow CPR means yesterday's close was near the middle of its range, showing a balanced session. Traders often watch for a range expansion or trending day after a narrow CPR, though it is a tendency, not a certainty.
How do you calculate pivot points?
Pivot = (previous high + previous low + previous close) ÷ 3. R1 = 2 × pivot − previous low, S1 = 2 × pivot − previous high. R2 = pivot + (high − low), S2 = pivot − (high − low). TC and BC for the CPR come from the high-low midpoint and the pivot.
What is a virgin CPR?
A virgin CPR is a central pivot range that price did not touch during its session. Traders treat it as an untested level that may attract price in later sessions and watch for a reaction when it is finally reached.
Which pivot is best for intraday trading?
Daily floor pivots with the CPR are the most widely used for NIFTY and BANKNIFTY intraday on 5-minute charts. Camarilla pivots give tighter levels for range days. Weekly CPR adds context. The best choice is the one you use consistently.
Should I use NIFTY spot or futures for CPR?
Either works if you are consistent. Futures trade at a premium to spot, so futures pivots sit slightly higher. Mixing spot levels on a futures chart, or the reverse, places the levels in the wrong spot.
What is the difference between Camarilla and CPR?
CPR and floor pivots use the pivot formula to build a central band and R1-R3, S1-S3. Camarilla uses the previous range multiplied by fixed factors added to the close, producing tighter levels closer to price that suit range-bound sessions.