NDTECH Tool-N1

CPR (Central Pivot Range) is a popular trading indicator used in technical analysis to identify potential support and resistance levels. It is based on the concept of pivot points, which are calculated using the high, low, and close prices of the previous trading session. The CPR indicator provides three key levels: the Central Pivot (P), the Bottom Central Pivot (BC), and the Top Central Pivot (TC).
Key Components of CPR:

Central Pivot (P): This is the primary level and is calculated as the average of the high, low, and close prices of the previous session.
P=High+Low+Close3
P=3High+Low+Close​

Bottom Central Pivot (BC): This level acts as a support level and is calculated as the average of the Central Pivot and the low of the previous session.
BC=P+Low2
BC=2P+Low​

Top Central Pivot (TC): This level acts as a resistance level and is calculated as the average of the Central Pivot and the high of the previous session.
TC=P+High2
TC=2P+High​

Explanation:

request.security: This function is used to fetch the high, low, and close prices of the previous day. The "D" parameter specifies the daily timeframe.

plot: This function is used to plot the CPR levels on the chart.

fill: This function is used to highlight the area between the BC and TC levels, providing a visual representation of the CPR range.

Usage:

Support and Resistance: Traders use the CPR levels to identify potential support (BC) and resistance (TC) levels. Price action around these levels can provide insights into market sentiment.

Trend Identification: If the price is consistently above the Central Pivot (P), it may indicate a bullish trend, while prices below P may indicate a bearish trend.

Breakout Trading: Breakouts above TC or below BC can signal potential trading opportunities.

Conclusion:

The CPR indicator is a versatile tool that can be used in various trading strategies. By implementing it in Pine Script, traders can customize and automate their analysis on the TradingView platform, making it easier to identify key levels and make informed trading decisions.