Find Hidden Intraday Supports And Resistances Through Camarilla Pivots
That is the place we give away to you easy methods to make an ALMOST assured return on a regular basis trading index or forex the use of camarilla pivots. To begin with, we’ll use Camarilla pivots Ranges to seek out our enhance and resistance factors for the complete day. Allow us to provide you with some historical past in the back of camarilla trading.
To download the camarilla pivots calculator please visit the link here.
In 1989, there was once a successful UK bond trader by means of the title of Nick Stott who used to be a mathematical trading whiz. As a substitute of the use of judgment and discretion to trade, he eradicated any probability of guesswork with the aid of trading scientifically. And he did so by using creating a selected equation that slightly merely follows the idea that markets, like most time sequence, are likely to revert to the imply.
In simpler terms, when markets have a very wide spread between the high and low the day before, they tend to reverse and retreat towards the previous day’s close. This in turn makes it easier to accurately predict what today’s intraday support and resistance will be.
And this is the equation we use to calculate these support resistance levels:
The Camarilla Pivots Equation
Resistance 4—–R4 = (H-L)X1.1/2+C
Resistance 3—–R3 = (H-L)X1.1/4+C
Resistance 2—–R2 = (H-L)X1.1/6+C
Resistance 1—–R1 = (H-L)X1.1/12+C
PIVOT POINT = (H+L+C)/3
Support 1———S1 = C-(H-L)X1.1/12
Support 2———S2 = C-(H-L)X1.1/6
Support 3———S3 = C-(H-L)X1.1/4
Support 4———S4 = C-(H-L)X1.1/2
We literally use to just plug the numbers into this equation and punch it out on our calculator. But, you don’t have to go that long, laborious route to calculate the levels. Along with this site, we’ve provided a free camarilla pivots calculator where you simply plug in the High, Low and Close… and it spits out the levels for you!
THE RULES OF TRADING
How to trade ‘UP’
The rule is when a bearish (white) candle hits support and closes on the support, the next candle should be BULLISH
(clear candle), so you trade for the market to go UP immediately after that close of that candle.
Be careful to note that…
1) The candle MUST close on the support level OR…
2) It must have touched the support level at sometime and closed as a BEARISH candle
However, if it passes through and closes beyond the support level, it’s a NO TRADE.
How to trade ‘DOWN’
The rules are exactly opposite for a DOWN trade.
When a BULLISH (white) candle hits resistance and closes on the resistance level, the next candle should be BEARISH
(white candle), so you trade for the market to go DOWN immediately after that close of that candle.
1) The candle MUST close on the resistance level OR…
2) It must have touched the resistance level at sometime and closed as a BULLISH candle
However, if it passes through and closes beyond the resistance level, it’s a NO TRADE.
To download a camarilla calculator click here!.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.