How to Find Rocket Stocks with Narrow Range CPR Trading Strategy
Namaskar friends! Today's video is also on the same topic - Pivot Points. And this video is on the Central Pivot Range. Earlier also, I made a video on Central Pivot Range. in that video, I showed you how you can do intraday trades on Central Pivot Range. Today's topic is slightly different.
It is not about trading the pivot points only. In this video, I'll show you how you can pick explosive stocks, Rocket stocks, the stocks, will start moving immediately from the morning, either up or down. But it will not show which way it will move. But it will move one way very fast, that I can assure you. You can find such rocket stocks using this CPR indicator. Friends, today, I'll show you, in this video, How to find Rocket Stocks with Narrow Range CPR Trading Strategy.
As you can understand, we will identify which stocks are in narrow CPR ranges and what happens if CPR is in a narrow range. I will show you that. So, let's start the video - How to Find Rocket Stocks with Narrow Range CPR Trading Strategy.
Friends, now we are in Zerodha Kite. Today, we are seeing the trades of the last 5 minutes of trades. Look at the charts. We can see trades of the last 5 minutes today in the charts. See, the market rallied on one side today.
The market moved on one side. The market moved only upside today. So, it was a trend day today in the market. There was a strong trend today. The market was not rangebound today. How will we know whether the market will be on a trend or rangebound? We will use an indicator for that.
that indicator is available in Zerodha Kite. Therefore I will be using Zerodha Kite now. If you do not have Zerodha Kite, use the link in the video description to join Zerodha. I'll leave a joining link there. From there you can open an account in Zerodha instantly and start trading using Kite. And also make good use of all these indicators in Zerodha Kite.
Zerodha has a good research team. They have made Kite a very powerful software. Currently there's no other trading platform that can provide you with as many indicators as Zerodha do. Friends, today I will be using an indicator in Kite. The indicator is CPR. We will use this
indicator to find Rocket stocks. This is CPR or the Central Pivot Range. See here, we have the Central Pivot Range indicator here.
I click on the indicator. See, we have added the CPR indicator. See today's CPR and the CPR of the last day. See, how wide was CPR of the last day. In comparison, see how narrow is today's CPR.
So, this is narrow range CPR. Whenever we have the narrow range CPR, during those days, there remains a great chance of being a trending day. As you can see, today all trend indicators will work very well. So let me add a trend indicator to the charts.
Suppose I pick Supertrend from the studies. Now, let me change the parameters from settings from Supertrend. Let edit settings. Now I in place 0f 7, 3 I put 14 instead of 7 and make 1.5 place of 3. So new settings become 14, 1.5. See, the market opened to above CPR.
And we got a buy signal in the first candle itself. Today CPR is very narrow compared to yesterday. Therefore, we presumed there is a good chance that today we might have a trending market. Trend means the market may move both ways but the movement will be high on both sides.
The market will on a trend, the market will not move in a rangebound manner. The market will not make a sideways movement like this. See, that happened. In the morning, we got a buy signal in the first candle.
After that, the market slowly started to move upwards. No sell signal appeared anytime. And see, the market is going to close now. Now it is 03:28 pm. Now where the market is going to close is the highest point of the day. So, now you can understand that today was a narrow range CPR. It was very narrow.
It was very narrow compared to yesterday. So we had a good trend today. Therefore, the market moved to one side.
Now, let's see a few signals from earlier days. So, we change the Supertrend settings to normal. That is Supertrend 7, 3. Now let's go back to a few days. This was today. See yesterday CPR was wide.
Therefore, there was not much movement yesterday. See the day before yesterday. Again CPR was narrow. CPR was narrow, and the market opened below the CPR.
Therefore there was a maximum chance of market moving in the direction in which the market opened. If the market opens below the CPR, then there is a maximum chance that the market will move downside. And if the market opens above the CPR, then there's a chance that the upside movements will be stronger.
So, in the side of CPR in which the market opens the market bias may be in that direction. See, the market opened below CPR, Supertrend gave a sell signal. See, from there where the market came down to.
Again a buy signal came in the Supertrend, but you should avoid the buy signal because the market primarily moved below the CPR today. Below CPR means there is a chance that you should earn more from the sell signals. There is a chance. Also, CPR being narrow does not mean that the market will move to one side only. The market may move both ways too.
But be assured, the market will be lively. The market will not be stagnant, the market will not move sideways. So, if you avoided that buy signal, you get a sell signal again. But, though after the sell signal was generated, the market did not fall heavily. There was an attempted pullback rally, but after that, see how the market fell heavily.
See where the market started, and where did it end? The market ended in the lower end. So, whenever you see, the CPR is narrow there's a strong probability that the market will make one-sided movements. Or the market may move both ways but there will be a trend in the market. This was aNn analysis in Nifty.
Now, let's see, how you can find Rocket stocks, using this CPR technique, the stocks that will create 'Dhamaka' in one day in the market. Now let's check the stocks that have narrow CPR ranges today. Friends, if you do not have a scan with you you have to check it manually. So, you have to check all the Nifty 50 stocks in the morning, one by one. In whichever stocks, you will see very narrow CPR ranges compared to the previous day, you can trade those stocks.
Let me show a few of them. Let's take Ultracemco. See, friends, this was the CPR of Ultracemco yesterday. And this is today's CPR. The stock opened above the CPR. It means the bias was mainly towards the upside. See here, the market
slowly went upwards. The stock Ultracemco started from the lowest point of the day. And from there, the stock started moving up slowly.
The stock ended moving up today. The stock ended almost near the day high. So, that's how effective the narrow range CPR. In this way, you can find the Rocket stocks. Now let's check another stock, HDFC.
You'll see narrow range CPR in HDFC. Let me write hDFC here. See the CPR of yesterday and today in HDFC. HDFC also opened above the CPR.
Once again, your trade bias is on the upside. This is a very narrow range CPR. You can trade narrow range CPR in two ways. You can trade using any Supertrend indicator. If you want to take the signal of the first morning, it was in the buy mode, you bought it and incurred a little loss, because it was on buy mode.
You avoided this sell signal. In the next buy signal you made a good profit. So, this was one technique.
You can trade this using Supertrend. Now I'll show you another technique. Let me delete the Supertrend first.
So I deleted that from here now. Now I will do another thing. I'll mark the high and low of 30 minute on the chart now.
For that, I'll use draw tools now. Now we have come to draw tools. Here you can get horizontal lines.
I pick the horizontal lines from here. Now I have marked the low of 30 minutes. So this is my 30 minutes low here. Now see the 30 minutes high. Here, the high of 6 candles is the day high.
I marked it here. So, this is the opening range of 30 minutes. So, now we will buy or sell in the opening range break. As there is more chance of breaking the upper range. See, this is my narrow range CPR.
The opening was above the narrow range CPR. The market bias is on the upside. So, if the opening range on the upside is broken, there is a good chance that we make a good profit.
See, we got a break here, but that could not sustain. The 5-minute candle did not close above the range. But see here, the opening range was convincingly broken and the move sustained. So we got a straight one-sided move.
After the ORB was broken, it once retested the ORB high. But from there it started a completely one-sided move and the market closed almost at the day high. so, friends, you can trade the narrow range CPR in two ways. Either you trade using Supertrrends or you can trade using ORB breakout. In my experience, both the Supertrends and the ORB breakouts work very well. The narrower the CPR, the more chance of stock making good moves.
Let me come back to Ultracemco again. This is the chart of Ultracemo stock. Earlier, we analysed Ultracemco with Supertrend. Now we will check it with ORB. This is the low of ORB. This is the low of the day.
After that, we can see highs of 6 candles. So, the 6 candles high comes here. Once the high was broken, once the the high was crossed, we can see the stock moved only to one side, only to the upside. So you can either play 30 minutes ORB or you can use Supertrend for this trading. now let's come to the charts of Nifty 50. Let me delete the ORB lines first.
Earlier we checked Nifty using Supertrend. Now we will check Nifty with ORB. See the bottom part first. This is the day low. This is the 30 minutes low. Now let me draw the 30 minutes high now. So this is the opening range of 30 minutes.
Wherever the opening range is broken, whenever the price broke the opening range, after that, the price started the one-sided move. And because the market opened here above CPR the market bias is also on the upside, Nifty went upwards, Ultracemco also went upwards. and HDFC also moved upwards. In this way, my friends, you can trade the narrow range CPR. You can trade in any ways shown. You can trade, stocks, indices, or you can find Rocket stocks also.
After seeing manually, in whichever stock the CPR seems narrow you may trade on those stocks or indices. In stocks where the CPR seems narrow, you trade those stocks only. Whenever the CPR appears to be wide, like here, the CPR seems quite wide, you should not trade in those stocks.
Leave that stock for that day. Trade only stocks having narrow range CPR with Supertrend or opening range breakout. Friends, before winding up this video, I want to show you my website stockmaniacs.net.
You will see Freebies here. Under Freebies, you'll see Algo traders. Under this Algo trader you will see ORB trader. Let's go to the ORB trader page now. This is opening range breakout.
You'll get to see all stocks of Nifty 50 here, opening ranges of all the stocks. You can choose ine, two or all stocks or select all stocks simultaneously and you can choose buy CO, buy regular. You can select buy BO but it is not working now. BO (bracket order) is not available now.
You can get opening ranges from here also. After 09:45 am, you will get 30 minutes opening ranges. And after 10:15 am, you will get opening ranges of the first hour.
You can directly buy from this page. You can give direct buy order in Zerodha from here. You can put your capital here, capital per stock. Here the capital is Rs 1 lakh by default. But you can change that. You can also set stop loss percent and target percentages here.
And you can give buy CO or buy regular. The buy BO option is not availble right now. In this way, you can buy or sell from here.
You only need to watch for one thing. In whichever stock the ORB is narrow, you'll trade on those stocks only. You can directly buy or sell those stocks from here.
If the stock opens above CPR, you buy the stock. If the stock opens below CPR, you short sell it. In this way, you can directly trade from this page. Till put a link to this page in the video description. So, please visit this page in the morning. In whichever stock you found a narrow range CPR, in those stocks you trade in ORB breakout.
If the stock breaks out on the upside, buy the stock. And if it breaks down from the lower end, short sell it. If the stock opens below CPR, the move sustains, then short sell it. This way you trade directly from this page. friends, you have seen that a rocket stock, an explosive stock, a stock that will move to one side only, either it will go up or come down, they will do something for sure.
How you can find such stock using this technique. I have also shown you examples from a few stocks and indices. You have also known in which trading platform you can get this CPR. I also showed that you can get narrow range CPR in Zerodha Kite.
Let me remind you again! If you do not have Zerodha Kite with you, you don't have anything to see the narrow range CPR, please check the link given in the video description. I will put a link there, from there you can open an account in Zerodha using that link. You can get Zerodha Kite instantly. Open an account in Zerodha and start using narrow range CPR. If you liked this video, if you have any question, ask me in the video comment section. And how you liked the video, in which topics you want to see videos, Kindly let me know all those things in the video comments section.
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Allow me to take leave till then. Thank you very much, my friends. Namskar from me again to you.