Short answer

The Central Pivot Range (CPR) is an indicator to identify key price points to set up trades. The CPR consists of three components:

Pivot

Bottom Central Pivot (BC)

Top Central Pivot (TC)

These are derived from the underlying high, low, and close price calculations:

Pivot = (High + Low + Close) ÷ 3.

Bottom CPR = (High + Low) ÷ 2.

Top CPR = (Pivot - BC) + Pivot.

The chart of SBIN on 24/08/2022 (the previous day) has it’s Open (O) - 519, High (H) - 523, Low (L) - 512.3, and Close (C) - 519.3.

On 25/08/2022, the pivot point data was 518.53. i.e. (H+L+C ÷ 3)

Here if the pivot point data is ascertained from the OHLC data of 25/08/2022, it will not match with the pivot points as it is calculated using the previous day’s OHLC.

The formula for calculating pivot points is mentioned below, with an example on Arrow ChartIQ.

Assume XYZ’s stock has its High (H) - 129.7, Low (L) - 126.9 and Close (C) - 127.35, respectively. So the pivot points in Arrow would be calculated as follows:

Did you know? CPR helps the trader identify key price points and the associated trend around these price points. Today’s CPR values act as the reference for tomorrow’s trading.

See related Arrow support articles for more detail./Arrow learning resources/chapter/the-central-pivot-range.