CPR PIVOTS

This page gives a perspective on how one can generate trend signals using the
concept of CPR pivots – Central Pivot Range

To Navigate to this page Click Pivots in Analyst Zone and choose CPR Pivots –
highlighted in yellow in the below picture.

CPR Heatmap

In the below picture you can also see two columns, CPR Wide and CPR Narrow.

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We have listing for the wide and narrow CPR and these will start getting identified
as bull or bear only after the market starts.

CPR Wide: The stocks that are slotted into the Wide section are those that have
seen some good moves recently and, since they have already displayed significant
movement they are more likely to consolidate rather than continue the trend.

CPR Narrow: The stocks in this list have been in a tight and very narrow range and
they have the potential to show some sort of trend for the period and maybe at
the cusp of a breakout.

The whole idea is to draw the user’s attention to those stocks that are showing
the best possibility of trending this does not mean that the trend will always be
visible.

So when you look at the image you will see two section todays and Next days.

Todays – Stands for the stocks that are either bullish (green) or bearish (red)
during the live market. When the market is on, this is the section that is to be
observed.

Next day – Gets populated at the end of the day on the basis of daily candle
completion and will show all the results in gray, basically after the end of the day
it cumulates all wide and narrow CPR results but it does not assign any bullish or
bearish grading, once the market opens the next day, if the stock is above the

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day’s CPR then it will have a Bullish (green) grading and the stock is below the CPR
it will have a bearish (red) grading.

CPR – Scoring

Scores are the count of number of trended CPR levels that a stock shows. The
larger the count, the more trended the stock. Once the score moves past 2 or 3
levels, one can consider the stock to be trended. The first way to use this would
be then to set the trailing stop at the BC levels of one or two CPR back. One can
keep raising the stop as the count progresses. If you use W/M pivots and you see
high scores for the CPR count, then such stocks can become candidates for short
to medium term investments. Or create positional trades in them.

The next section of the page deals with the actually making the Buy or Sell
decisions on the stock, there are two major ways you can proceed with it. First
one is using Fibonacci pivots and the next is using Camarilla pivots.

Levels 1, 2, 3 stocks (Fibonacci)

This particular section gives bullish and bearish signals on stocks on the basis of
the quality of the breakout given by a stock. Level 1 is the best followed by 2 and
3. You will also notice that the shade of green/red gets darker as the stock
progressing from level 3-2-1.

The ones with max clearance for trade immediately at current levels would be
stocks in Level 1. Usually, you get enough stocks in that list. In case you don’t,
then one can take a look at the list of stocks in levels 2 and 3. These are stocks
that need another condition or two to be met before they can get into the
confirmed level 1.

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Camarilla Heatmap

Here the classification of the bullish and bearish stocks is from two perspective-
Mode and Alert

Stocks in Mode are the ones that are immediately tradable while those in Alert
group are the ones that one should watch for continuation of the trend. They are
the ones ready to move but need to just a bit more to achieve the full clearance.

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Gaps

These refer to stocks that have shown a gap in the CPR indicating that these may
be the more trended stock among the lot, provided they show continued follow
through. One can create a watch list on such stocks and check them through
other pages or through the charts to identify the ones where moves are
strengthening further.

Wide 7

These stocks are the ones showing very wide CPR (being the widest in the last 7
CPR's). As such these stocks are very unlikely to continue their trends. Typically,
their bull or bear triggers are also pretty wide and most times, the move exhausts
by the time they reach the trigger areas. Such stocks we can use to either short
strangles or to exit from pending positions as they are probably at their end.

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Narrow 7

Same significance as the normal Narrow selection but with the difference that a
bigger trend may emerge out of such narrowing. Hence to be prepared for such a
move so that one can act on it swiftly.

Stocks in this list that start out beyond the CPR and then continue further are the
ones to trade. These stocks have high hit rate for succeeding in the day.

Loading the universe:

Users can run our CPR pivot Algos on the universe of your choice. The first step
would be to select the particular pre-defined universe from the dropdown box as
shown. One can also create watch list of preferred stocks so this entire module
can be customized to the list of stocks that you are interested in or as per your
portfolio of stock.

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CPR Levels

The levels page contains tremendous information and can help you in every
element of your analysis.

On the top left of the page you have a selection for CPR levels (marked in red
arrow), this page shows all the levels for every stock in our universe. The user can
see the list of CPR levels for all stocks. There is a search function (Red box) and a
watch list and universe selection along with an option to pick multi time frames
(Black box) to perform analysis on the users preferred time frame.

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Underlined Signals

You will notice that on the table there are certain areas where you might see a
red underline in certain columns and also green ones in other columns. These are
designed to tell you directly where the stock is trading. When a stock is in the
bearish zone and below key levels like S1 , BC, Prev Low it will displayed in red, on
the flipside if the stock is in the bullish zone and above R1 or TC, Prev Day high it
will be displayed in Green

For e.g., in the above image Apollo hospital has a red underline below S1 – which
indicates that currently the recent price which is 3589 is below its S1 level of
3620, and it is a red underline because that is considered bearish. Also you will
find the there is a red underline on the BC column also so in this case the stock is
below S1 level and also below the BC level.

Time frame, Next Day functions

The default time frame on the chart will be for DAY, when you look at day you will
see everything from the perspective of the daily pivot. You have an option to
move above to Weekly and monthly which will show you all the results from a
higher time frame. Weekly will give you data of the weekly pivot and monthly will
give you day of the monthly pivot. Please do note that all the pivots, R1,S1 levels
etc. are pertaining to Fibonacci Pivots.

You may also notice a selection that says ALL, this helps you see the results of all
timeframe together in one page. So in this case you might see the names of stock
appearing multiple times – those are an indication that the stock has qualified for
a particular signals in more than one timeframe.

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You will also see a button that says next day, this button will be activated at the
End of the day post 4PM when the computation for next day’s levels is done for
all stocks. So you will have to go to this page and select it to see tomorrows levels
in advance today, this can help you be ready with your trading plan even before
the market opens the next day and once the market opens you can revert back to
the older screen by turning the toggle off.

If a stock is approaching the CPR pivot zone from above or below these levels will
function as the first of the support or resistance level. If current price action has
clearly lifted the prices above the Daily, weekly as well as monthly CPR level, it
means new momentum has come into the stock and if it persists, then it could be
a good signal to trade on.

Nomenclature for different columns on the levels table

In the below pic you can see that the results of various stocks are visible across
many columns, there is a lettering done besides every column, which is explained
more in detail below.

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A B C D E F G H I J K L

A. SYMBOL – Name of the stock

B. TIMEFRAME: Duration in which the data is being displayed .options are
D/W/M – it can be toggled from the top right of the screen as seen in the
black box.
C. Recent Value – the Current market price of the stock in Equity segment
D. R1 – The first resistance level as per Fibonacci Pivots
E. S1 - The first support level as per Fibonacci Pivots
F. Score: The CPR score for the particular stock in the selected time frame.
Details of the score are mentioned in detail in the above section.
G. CPR Width – we have mentioned the range of the entire CPR in percentage
terms
H. TC –– Top Central pivot
I. Pivot – The level of the Pivot – which is the mid-point of the range.
J. BC – Bottom Central Pivot
K. Prev High – the previous Period high of the stock(For day Previous day high,
for week previous week high and for Month – previous Month high price)
L. Prev low – the previous Period low of the stock (For day Previous day low,
for week previous week low and for Month – previous Month low price)

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