In this post I demonstrate how you may use Central Pivot Range (CPR) to find the best entries. CPR is leading and static indicator that opens ahead of day. It acts as support or resistance during trends. Price usually pulls back to CPR in trending markets. In fact, any pivot is a Fibonacci retracement level (33.3 or 66.6) from the previous low (33.3) or high (66.6). This is not holy grail, CPRs are often pierced as you see, but it will be a helpful tool in your analysis.
Blue - weekly CPR
Black - daily CPR
1 Day, week opens BELOW CPR look for shorts.
2 Day, week opens ABOVE CPR look for longs.
3 Day week opens WITHIN CPR prepare for ranging market.
As you see thin CPRs are forecasters of volatility. With thin CPR, there is also more likelihood that it will be pierced.
Average size CPR is more solid and less prone to be broken on the other hand.
Very wide CPR often predict range within.
You may also use yearly and monthly CPRs in the same manner.
GOOD LUCK!
Blue - weekly CPR
Black - daily CPR
1 Day, week opens BELOW CPR look for shorts.
2 Day, week opens ABOVE CPR look for longs.
3 Day week opens WITHIN CPR prepare for ranging market.
As you see thin CPRs are forecasters of volatility. With thin CPR, there is also more likelihood that it will be pierced.
Average size CPR is more solid and less prone to be broken on the other hand.
Very wide CPR often predict range within.
You may also use yearly and monthly CPRs in the same manner.
GOOD LUCK!
but they do belong to the cluster of Fibonacci retracement ratios:
1. 33.3% to 38.2%,
2. 50%
3. 61.8% to 66.6%