1/n
You can call CPR as a Swiss knife for a Trader.
Want to know how CPR can be a game changer in you trading set-ups .
It tells you when to enter, when to exit, what can be the probable direction or the trend in the market and shows what kind of trades to enter into .
2/n
CPR width analysis
"There are 3 kinds of CPR width -
First is "Wide"
Second is "Narrow”
Third is ""Average CPR Width"
3/n
Wide CPR
If the on charts a wide CPR is getting formed that means the market is expected to be "RANGEBOUND"
Therefore it is important to notice the width, so that on that if you spot a Reversal trade - it will have a higher probability of success .
4/n
Therefore you can increase your quantity
and on those days if you spot a breakout trade - kindly reduce your quantity, for a proper risk management.
5/n
Narrow CPR
It shows a trending breakout market.
You have to look out for breakouts of Previous Day Low/High (PDL/PDH) or look for pivot break-out or even the CPR itself.
You can trade with double quantity , especially if the break-out is happening in the early hours .
6/n
Average CPR
The days expectations depends on the bigger theme of the market , you have to be observant of breakout and reversals also .
7/n
CPR relationship analysis
It tells us the market trend or for that matter any stock trend as well.
It is very important to know what is the trend of the script, while entering into any trade.
Being on the wrong side of the trend may cost you fortune
8/n
So the general understanding of the CPR relationship analysis is that If CPR of today is higher than previous day's CPR- then that particular stock / Indices is in Up-trend and vice versa.
Now there is another analysis - i.e
9/n
If CPR of today is "Inside", yesterday's CPR then most probabily , it will be a breakout in the market"
And If CPR of today is "outside" of yesterday's CPR i.e
Today CPR is engulfing yesterdays CPR - then most probabily , it will be a No- trend market .
10/n
VIRGIN CPR
As the name suggests - VIRGIN - ( Virgin by price)
It means a CPR is formed by the price action and then the price never came back to those CPR levels -
It usually happens at the peak of uptrend in the stock and downfall starts .
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Trend Changing CPR
Because most of the traders don't know that they can use CPR to spot a Trend Change That's why most traders gets trapped
If after a continuous downtrend CPR from past few days - if you see a CPR which closes above the previous day CPR
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Then there is a chance that the trend of the stock has reversed.
and the same is also true for the uptrending stock
If you want to know a more such secret strategies for free and want 3 trading setups based on CPR
Retweet and like this thread
13/n
Summary -
1)CPR width Analysis
2)Relationship Analysis
3) Virgin CPR
4) Trend changing CPR
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@invest_in_mind for more.
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#trading #cpr #stockmarket
