Virgin CPR refers to a trading scenario where the price of an asset does not touch the Central Pivot Range (CPR) levels throughout an entire trading session.
In other words, the price action completely avoids interacting with the CPR zone, indicating a strong directional move from the opening and a lack of indecision or consolidation near the pivotal support and resistance levels defined by the CPR. This can be a significant observation for traders.
A Virgin CPR suggests a potentially strong trending day, as the price remains detached from the "equilibrium" or value area represented by the CPR. Traders often look for setups that capitalize on this directional bias, anticipating a continuation of the trend. Conversely, the absence of price touching CPR means the levels could act as strong support or resistance in later sessions, if price revisits them.
Here's a breakdown to clarify:
- CPR (Central Pivot Range): A range calculated using the previous day's high, low, and close prices. It consists of three levels: Pivot Point (PP), Top Central Pivot (TC), and Bottom Central Pivot (BC). It's used to identify potential support and resistance levels.
- Virgin CPR: A situation where the price never interacts with any of the CPR levels (TC, PP, or BC) during the current trading day.
Consider this simple example:
Imagine a stock's CPR for July 10, 2024, is between \$50 and \$52. If, throughout the entire trading day of July 10th, the stock price only fluctuated between \$53 and \$55, never touching the \$50-\$52 range, that would be a Virgin CPR day.
