5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022

C GO S

LANGUAGE  COURSES WEBINARS LEARN ON ELEARNMARKETS

S
Home  Derivatives

Profitable Options Trading using

CPR Indicator by Mr Gomathi
Shankar
by Elearnmarkets — May 6, 2022 in Derivatives, Open Interest
0
Reading Time: 7 mins read

18.6k  Share on Facebook  Share on Twitter  Share on WhatsApp 

VIEWS

In an interesting session as a part of the highly popular Face2Face series,

conducted by Elearnmarkets, Mr Vivek Bajaj, Co-founder of Elearnmarkets, invited
Mr Gomathi Shankar, a successful stock market investor with many years of
experience, to decode Profitable Options Trading using CPR Indicator.

https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 1/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022

Mr Gomathi Shankar, (Founder & CEO, Scalpers Trading Academy, Chennai) is a

full-time trader and trainer skilled in Price Action Trading with more than 7 Years of
experience in Financial Markets.

He graduated with a Mtech from Anna University and Finance Management from
the Loyola Institute of Business Administration, Chennai. 

He is also a Certified Research Analyst and Technical Analyst, having past work
experience with Karvy Stock Broking, Spider Software Pvt Ltd, and Zerodha Stock
Broking.

In this blog, our speaker will talk about profitable options trading with the help of
the CPR Pivot System. In addition, he will discuss various subtopics that are a part
of the CPR Pivot system, such as CPR indicators, formula, characteristics, and types
of CPR.

Table Of Contents
Understanding Central Pivot Range-CPR Indicator

How to use CPR Indicator?

Options Selling 

Options Selling using CPR Indicator.

More Webinars Mr Gomathi Shankar

1. "CPR Saves Trades" – A Multi-timeframe Approach

2. Become a pro-in-Stock Selection

3. Understanding Price Action Trading in Technical Analysis

You can watch the entire video here

Bottomline

Understanding Central Pivot Range-CPR Indicator

Central Pivot Range (CPR) Indicator is common among retail traders as it is mainly
based on price action.

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 2/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
So generally, there will be one pivot line; above the pivot line, there are resistances,
and below, there will be support levels, so when we use points, there is only one
concept that we all know.

If the price is trading about the pivot point, then we have to look only for long
opportunities, and the price that is trading below the pivot point has to look only for
the short opportunities.

CPR INDICATOR

The CPR consists of three components –

Pivot = (High + Low + Close)/3

Bottom CPR = (High + Low)/ 2

Top CPR = (Pivot – BC) + Pivot

The CPR does just this, i.e., it 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.

Profitable Options Trading using CPR Indicator by Mr Gomathi Shankar 1

If the 3 lines are closer to each other, it is known as Narrow CPR, indicating that the
market is trending.

If the 3 lines are not closer to each other, it is known as wider CPR, indicating that
the market is sideways.

One should note that:

Tomorrow’s CPR will be narrow-ranged if today is a narrow range day.

If today is a trending day, tomorrow’s CPR is a wide-ranged one. The higher the
trend, the wider the CPR.

How to use CPR Indicator?

Traders can use the CPR Indicator as developed by Mr Gomathi Shankar in
Tradingview as shown below:

Profitable Options Trading using CPR Indicator by Mr Gomathi Shankar 2

chat-
One should note that when trading with this indicator, one should use:
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 3/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
5 minutes chart for daily CPR Indicator

1-hour chart for weekly CPR Indicator

Daily chart for monthly CPR Indicator

Options Selling 
Mr Gomathi Shankar uses a weekly CPR indicator for trading positional options
selling. He says that options selling is not risky unless you take hedge your position,
and also, we can do part-time.

Profitable Options Trading using CPR Indicator by Mr Gomathi Shankar 3

One should be an options opportunist and not the buyer or seller of an option.

You can also join our course on Certification in Online Options Strategies

Options Selling using CPR Indicator.

Whenever the market is above CPR, the speaker does a bull put spread and
Whenever the market is below CPR, the speaker does a bear put spread, the
historical data as shown below:

Profitable Options Trading using CPR Indicator by Mr Gomathi Shankar 4

So, the speaker uses the weekly CPR indicator in the hourly chart and waits for 1-
hour candle to form on Monday and closes the position on Thursday, the day of
expiry.

Profitable Options Trading using CPR Indicator by Mr Gomathi Shankar 5

So, if the candle closes above CPR, he will take the bull put spread strategy.
According to him, one should consider the previous week’s low and S1 as together.

He takes 50% of the previous week’s low and weekly CPR. Suppose the 50% range is
around 34,700, so he will sell 34,700 puts and buy 300 strike prices away, i.e. 34,400
puts and close the position on Thursday expiry.

Also, the maximum profit will be the stop-loss. One does not check any other
indicator like open interest or options Greek. This is a pure price action strategy.

More Webinars Mr Gomathi Shankar

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 4/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
You can watch more Webinarsby Mr Gomathi Shankar from here:

1. “CPR Saves Trades” – A Multi-timeframe Approach

CPR(Central Pivot Range) is a price action trading leading indicator. Using this
indicator, price action trading becomes simpler than plain chart analysis. One can
be successful in trading the stock markets if he has a strong understanding of
price movement in all timeframes. Price along with CPR indicator can give the best
probable direction. Participants will be able to analyse the trend with ease and
build conviction for scaling up with trends & initiate larger positions.

2. Become a pro-in-Stock Selection

In this webinar, we will extensively focus on the high probable stock selection which
has the potential to give a good rally for day trading as well as swing trading.

3. Understanding Price Action Trading in Technical Analysis

In simple terms, Price Action Trading is underrated in technical analysis and often
ignored by traders. This webinar aims to prove the importance of price action
trading and dow theory with practical chart examples which will release the
complicated approach towards trading rather than looking into complex trading
systems.  

You can watch the entire video here

Profitable Options Trading using CPR Pivot System

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 5/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
Bottomline
We hope you found this blog informative and use it to its maximum potential in the
practical world. Also, show some love by sharing this blog with your family and
friends and helping us in our mission of spreading financial literacy.

Happy Investing!

You can also visit web.stockedge.com, a unique platform that is

100% focused on research and analytics.

Tags: advance CPR INDICATOR options trading strategies

 Share  Tweet  Send 

Previous Post Next Post

All about AMFI-Association of Mutual 7 Factors Affecting Options Pricing

funds-Role, Objectives, NAV

Elearnmarkets
Elearnmarkets (ELM) is a complete financial market portal where the market
experts have taken the onus to spread financial education. ELM constantly
experiments with new education methodologies and technologies to make
financial education effective, affordable and accessible to all. You can
connect with us on Twitter @elearnmarkets.

    

Related Posts

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 6/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon

DERIVATIVES DERIVATIVES

A Complete Guide on Options Trading Decoding Volatility Skew and Smile in

 APRIL 28, 2023  45.4K Stock Market Trading
 APRIL 26, 2023  455

DERIVATIVES DERIVATIVES

Understanding Put-Call Ratio Decoding Maximum Pain Theory in Options

 APRIL 24, 2023  1.2K Trading 
 APRIL 21, 2023  1.4K

Leave a Reply
Your email address will not be published. Required fields are marked *

Comment *

Name *

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 7/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
Email *

POST COMMENT

Follow Us

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

REGISTER FREE ACCOUNT

Download App

Categories

Basic Finance

Derivatives

Financial Planning

Fundamental Analysis

Technical Analysis
chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 8/9
5/21/23, 12:24 PM Profitable Options Trading Using CPR Indicator By Mr Gomathi Shankar-2022
icon
Marketshala

Miscellaneous

© 2022 Elearnmarkets . All Rights Reserved

Visit Elearnmarkets / Courses / Webinars / Financial Guides / Get Free Counselling

chat-
icon
https://blog.elearnmarkets.com/options-trading-using-cpr-indicator/ 9/9