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Pivot & CPR

Pivot points and Camarilla pivot range (CPR) are two widely used technical analysis tools that are used by traders to determine potential support and resistance levels in the market.
Pivot points are calculated based on the previous day's high, low, and close prices, and are used to identify potential levels of support and resistance. The basic pivot point level is calculated by adding the high, low, and close prices of the previous day and dividing the sum by three. Traders then use this level as a reference point to determine potential areas of support and resistance. Additional support and resistance levels can be calculated based on the difference between the pivot point and the previous day's high or low.
Camarilla pivot range (CPR) is a modification of the traditional pivot point formula that uses a different set of calculations to determine support and resistance levels. CPR is calculated based on the previous day's high, low, and close prices, as well as a fixed set of values. These values are used to determine potential levels of support and resistance at different distances from the pivot point.
Traders use pivot points and CPR to help identify potential areas of support and resistance in the market, which can be used to make trading decisions. When the price of an asset approaches a pivot point or CPR level, traders may look for a potential bounce or breakout, depending on market conditions and other technical analysis tools. It is important to note that pivot points and CPR are just one tool among many that traders use to make trading decisions and should not be relied upon solely for making trading decisions.