Book notes: Secret of Pivot boss by Franklin Ochoa , Chapter 5

Today we will have a brief discussion about CPR. My reference is from the book of Mr. Franklin Ochoa.

In engineering words, CPR is the center of gravity of the last trading session and its mass is directly proportional to its width. Below Fig 1 represent the calculation of CPR lines. 

TC, Pivot and BC constitues a CPR.

Fig 1

You can visit tradingview website and check for this option or you can calculate. Below fig 2 will help you to understand what you can expect in today's market session compared to the last trading session. 

Let's take every condition one by one.

Unchanged value: CPR lines of the previous day and the trading day is unchanged. We can expect trading day to be unchanged or breakout.

Outside value: CPR of the trading day is wider than CPR of the previous day but at the same line. we can expect the trading day to be moderately bullish. 

Inside value: CPR of the trading day is narrower than CPR of the previous day but at the same line. we can expect the trading day to be breakout. 

Higher value: CPR of the trading day is above the CPR of the previous day. We can expect the trading day to be bullish. 

Overlapping higher value: CPR of the trading day is above and overlapping. We can expect to be moderately bullish.

Lower value: CPR of the trading day lower than the previous day CPR. We can expect trading day to be bearish.

Overlapping Lower value: CPR of the trading day is lower and overlapping. We can expect to be moderately bearish.

Fig 2

Fig 3

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