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Pivot points and CPR, explained simply
Before the market opens, many Indian intraday traders mark a few horizontal lines on their charts: the pivot, a couple of support and resistance levels, and the CPR. These lines come from simple arithmetic on yesterday’s prices. This guide shows exactly how they’re calculated, how traders read them, and where they fall short.
In short: pivot points use the previous day’s high, low and close to calculate a central level (the pivot) plus support levels below it and resistance levels above it. The CPR adds two more lines around the pivot to form a band. They are reference zones where price may react, not signals that it will.
What are pivot points?
A pivot point is the average of the previous period’s high, low and close. For intraday trading, that period is usually yesterday. Because many traders watch the same levels, price sometimes slows down, pauses or reverses near them. Above the pivot, traders mark resistance levels (R1, R2, R3) where rallies may stall. Below it, they mark support levels (S1, S2, S3) where falls may slow.
The levels are calculated once, before the market opens, and stay fixed for the whole day. That’s part of their appeal: they don’t repaint or change as price moves.
Classic pivot point formulas
Here H, L and C are the previous day’s high, low and close.
| Level | Formula |
|---|---|
| Pivot (P) | (H + L + C) ÷ 3 |
| Resistance 1 (R1) | (2 × P) − L |
| Support 1 (S1) | (2 × P) − H |
| Resistance 2 (R2) | P + (H − L) |
| Support 2 (S2) | P − (H − L) |
| Resistance 3 (R3) | H + 2 × (P − L) |
| Support 3 (S3) | L − 2 × (H − P) |
Worked example
Say Nifty’s previous day had a high of 24,600, a low of 24,300 and a close of 24,500. The day’s range (H − L) is 300 points.
- Pivot = (24,600 + 24,300 + 24,500) ÷ 3 = 24,466.67
- R1 = (2 × 24,466.67) − 24,300 = 24,633.33
- S1 = (2 × 24,466.67) − 24,600 = 24,333.33
- R2 = 24,466.67 + 300 = 24,766.67, and S2 = 24,466.67 − 300 = 24,166.67
- R3 = 24,600 + 2 × (24,466.67 − 24,300) = 24,933.33, and S3 = 24,300 − 2 × (24,600 − 24,466.67) = 24,033.33
Skip the maths. Enter any symbol’s high, low and close and get every level instantly, for free.
📐 Open the levels calculatorWhat is the CPR (Central Pivot Range)?
The CPR is a band of three lines around the pivot, very popular among Indian intraday traders:
| Line | Formula | Example |
|---|---|---|
| Pivot (P) | (H + L + C) ÷ 3 | 24,466.67 |
| Bottom central (BC) | (H + L) ÷ 2 | 24,450.00 |
| Top central (TC) | (P − BC) + P | 24,483.33 |
If the calculated TC comes out below BC (this happens when the close is in the lower part of the day’s range), simply swap the two, so the higher value is always the top of the band. In our example the CPR runs from 24,450 to 24,483.33, a width of about 33 points.
How traders commonly read the CPR
- Width: a narrow CPR (compared with recent days) is often read as a sign the day could trend strongly; a wide CPR is often associated with sideways, range-bound days.
- Position: price holding above the CPR is generally seen as a bullish bias for the day, and holding below it as bearish. Price inside the band often means indecision.
- Day to day: traders also compare today’s CPR with yesterday’s. A CPR higher than the previous day’s is read as rising sentiment, and lower as falling.
These are common interpretations, not rules. Plenty of narrow-CPR days stay sideways, and plenty of wide-CPR days trend.
Other pivot methods
Different formulas give slightly different levels. Here are the same inputs (H 24,600, L 24,300, C 24,500) in four popular methods:
| Level | Classic | Fibonacci | Camarilla | Woodie |
|---|---|---|---|---|
| R4 | – | – | 24,665.00 | – |
| R3 | 24,933.33 | 24,766.67 | 24,582.50 | 24,950.00 |
| R2 | 24,766.67 | 24,652.07 | 24,555.00 | 24,775.00 |
| R1 | 24,633.33 | 24,581.27 | 24,527.50 | 24,650.00 |
| Pivot | 24,466.67 | 24,466.67 | – | 24,475.00 |
| S1 | 24,333.33 | 24,352.07 | 24,472.50 | 24,350.00 |
| S2 | 24,166.67 | 24,281.27 | 24,445.00 | 24,175.00 |
| S3 | 24,033.33 | 24,166.67 | 24,417.50 | 24,050.00 |
| S4 | – | – | 24,335.00 | – |
← Swipe the table sideways to see all four methods →
- Fibonacci uses the same pivot, then adds or subtracts 38.2%, 61.8% and 100% of the day’s range.
- Camarilla centres its levels on the previous close, using multiples of the range (range × 1.1 ÷ 12, ÷ 6, ÷ 4 and ÷ 2). The levels sit much closer together, which suits traders watching small intraday moves.
- Woodie gives the close more weight: its pivot is (H + L + 2 × C) ÷ 4.
No method is “correct.” Most traders pick one and use it consistently, rather than switching to whichever fits after the fact.
How traders use pivot levels
- As zones, not exact prices. Price rarely turns at the exact rupee. Traders treat each level as an area to watch.
- Waiting for a reaction. Many traders don’t buy just because price touches support. They wait for confirmation, such as a candle closing back above the level, before acting. This takes patience, and it filters out many false moves.
- Placing stops beyond a level. A level gives a logical place for a stop-loss: if price clearly breaks through support, the idea behind the trade was wrong.
- Setting realistic targets. The next level up or down is a natural place to consider taking profit.
The waiting part is exactly what our free game Patience Pays trains: buy only after price reaches the zone and a confirmation candle closes there.
Limitations to keep in mind
- They’re based only on yesterday. News, results, global markets and big gap openings can make the levels irrelevant within minutes.
- They work best on range-bound days. On strong trend days, price can slice through several levels without stopping.
- Many traders watch them. That can make reactions more likely, but it also makes the levels obvious places for false breakouts and stop-hunting.
- Data matters. Use the same high, low and close as your charting platform; small differences change every level.
How to use the Tradyog levels calculator
- Open the Tradyog dashboard and find Daily support and resistance.
- Type the symbol, and enter the previous day’s high, low and close from your chart.
- Choose a method: Classic (with CPR), Fibonacci, Camarilla or Woodie.
- Optionally add the current price to see where it sits between the levels.
- Tap Save to my levels to build your watchlist for the day.
Frequently asked questions
Which price data should I use for daily pivots?
Use the previous trading day’s high, low and close for the regular session, from the same source as your chart. For weekly pivots, use the previous week’s high, low and close instead.
Which pivot method is best?
None is objectively best. Classic pivots and CPR are the most widely watched in India. Camarilla levels are tighter and suit very short-term trading. What matters most is using one method consistently and testing it on your own trades.
Does a narrow CPR always mean a trending day?
No. It’s a common reading, not a guarantee. Many narrow-CPR days stay sideways. Treat it as one clue among several, and always manage risk with a stop-loss.
Can I use pivot points for stocks, commodities and crypto?
Yes. The formulas work on any instrument with a high, low and close: Nifty, stocks, MCX gold or crude, currency pairs and crypto. For crypto, which trades 24 hours, traders usually use a fixed daily candle time.
Are pivot levels a buy or sell signal?
No. They’re reference levels from a formula. They show where price has a higher chance of reacting, not what it will do. Decisions still need your own analysis and risk management.
This article is for education only and isn’t investment advice. Tradyog is not registered with SEBI as an investment adviser or research analyst. Pivot levels are calculated by formula and are not recommendations.