How to build bias for any month ?
Building Monthly Bias with CPR
1. Identify the Central Pivot Range (CPR) for the month
• CPR is the average price level for the month.
• It remains constant throughout the month and acts as the balance point.
2. Mark Key Levels:
• Above CPR: Previous Monthly High, R1, R2 (resistances).
• Below CPR: Previous Monthly Low, S1, S2 (supports).
3. Interpretation:
• Price generally oscillates between these ranges.
• CPR provides the “fair value” of the market for the month.
• The supports and resistances mark the extremes.
4. Bias Formation:
• If price sustains above CPR → bullish bias.
• If price sustains below CPR → bearish bias.
• If price hovers around CPR → sideways / neutral bias.
5. Trading Psychology:
• Avoid being overly bullish when prices are near upper extremes.
• Avoid being overly bearish when prices are near lower extremes.
• The CPR itself gives a strong indication of directional bias.
👉 In short: CPR = Balance Point; R1/R2 = upper boundary; S1/S2 = lower boundary. Price oscillates within this band, giving us a practical monthly bias.
Building Monthly Bias with CPR
1. Identify the Central Pivot Range (CPR) for the month
• CPR is the average price level for the month.
• It remains constant throughout the month and acts as the balance point.
2. Mark Key Levels:
• Above CPR: Previous Monthly High, R1, R2 (resistances).
• Below CPR: Previous Monthly Low, S1, S2 (supports).
3. Interpretation:
• Price generally oscillates between these ranges.
• CPR provides the “fair value” of the market for the month.
• The supports and resistances mark the extremes.
4. Bias Formation:
• If price sustains above CPR → bullish bias.
• If price sustains below CPR → bearish bias.
• If price hovers around CPR → sideways / neutral bias.
5. Trading Psychology:
• Avoid being overly bullish when prices are near upper extremes.
• Avoid being overly bearish when prices are near lower extremes.
• The CPR itself gives a strong indication of directional bias.
👉 In short: CPR = Balance Point; R1/R2 = upper boundary; S1/S2 = lower boundary. Price oscillates within this band, giving us a practical monthly bias.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.