Just input today’s open, high, low and close value in the Camarilla Calculator below to get tomorrow’s support and resistance as well as breakout and breakdown levels. Mobile users need to scroll horizontally to see the full Camarilla pivot points below.
Camarilla Calculator FAQ
This formula was introduced in 1989 by a UK bond trader named Nick Stott. The Camarilla Equation in calculates ten levels of intra-day support and resistance according to yesterday’s High, Low, Open and Close. There are 5 of these “S” levels below yesterday’s close, and 5 “R” levels above. They are numbered S1, S2, S3, S4, and S5, etc. The most important levels are S3, R3 levels and S4, R4 levels. Camarilla Calculator is a technical tool that calculates these levels automatically from the last trading session’s open, high, low and close value. Just input these levels in the calculator and it will calculate the trading levels automatically.
The formula used in the camarilla equation is as follows:
Resistance 4 or R4 = (H-L)X1.1/2+C
Resistance 3 or R3 = (H-L)X1.1/4+C
Resistance 2 or R2 = (H-L)X1.1/6+C
Resistance 1 or R1 = (H-L)X1.1/12+C
PIVOT POINT = (H+L+C)/3
Support 1 or S1 = C-(H-L)X1.1/12
Support 2 or S2 = C-(H-L)X1.1/6
Support 3 or S3 = C-(H-L)X1.1/4
Support 4 or S4 = C-(H-L)X1.1/2
Here O, H, L, and C represent the open, high, low and close value of the previous trading day.
How to use Camarilla Calculator?
The main way to use the Camarilla equation in stock or indices is to wait for the price to approach S3 or R3. When price does so, traders expect the market to reverse at S3 and R3 level and so they open positions against a trend and place protective stop loss outside the closest S4 or R4 level.
Stop level at S4/R4 is only a suggested stop, you’ll learn why below, traders are encouraged to find their own stops according to the money management rules and risk appetite.
Should one immediately place an order once the price hits the S3/R3 level? Yes, if you trade aggressively, No, if you like to see confirmation first. For confirmation, price have to hit S3/R3 level, find support or resistance there and clearly demonstrate an intention to reverse. Traders may want to learn about reversal candlestick formation patterns in order to be able to spot confirmation of a turning market.
The second way to trade stocks, indices, forex with the Camarilla Equation is to look at S4/R4 levels to be breached, which would signal of a breakout trade setup and allowing traders trade breakout in the direction of a trend. For, example, if price pushes up through the higher S4/R4 level, the chances are it is going to keep on running that way. Breakout trading outside the S4/R4 level expects to capture sharp directional market moves.
While running with the breakout outside S4/R4, use either suggested S5/R5 level or your own target.
After setting Camarilla levels on the charts, traders look at where the market has opened regarding the levels.
Market Open INSIDE S3/R3 or Camarilla Pivot Points:
If the market opens inside the S3/R3 levels, you must wait for the price to approach either of these two levels. Whichever it hits first determines a trade: if the higher R3 is hit, Short against the trend in the
expectation that the market is going to reverse. Initial SL above R4.
The opposite applies when the Lower S3 level is hit first – go Long against the trend. Set SL below S4.
On the 4th of April 2019, Bank Nifty future has opened between S3 and R3. It has taken support at S3 and Rallied up to R3. It has once again taken a reversal from the R3 level and came back to S3. The aggressive traders must look for a reversal candle before going long or short using the Camarilla Calculator.
Market Open OUTSIDE S3/R3 of Camarilla Pivot Points:
Taking profits is a matter of personal judgment – just be aware that you will want to take profits at some time during the day because the market is unlikely to “behave” and stay right-sided for your trade. These reversals from S3/R3 appear to happen as often as 4 times out of 5 during intra-day trading.
On 22nd February 2019, Bank Nifty future has opened outside of S3 and R3. It has broken down below S4 and made a downside rally throughout the day.
The best way to trade the breakouts is, do not take the first breakout. For a buy trade watch the stock crossing the R4 level. Then if it retraces back to R4 or the R3 zone take a long trade. Similarly, for a short sell trade do not take the first short. Rather watch the stock breaking below the S4 level. Then enter in a pullback. This will provide a low-risk high-profit entry.
The rules of trade entry using Camarilla Pivot Points
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 the following
- The candle MUST close on the support level OR
- It must have touched the support level at some time 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.
- The candle MUST close on the resistance level OR
- It must have touched the resistance level at some time and closed as a BULLISH candle
- However, if it passes through and closes beyond the resistance level, it’s a NO TRADE.
Camarilla Calculator combined with Pivot Points:
Sometimes you may have also noticed that Pivot supports and resistances and the beauty of price reversal at it. You may use both Camarilla levels and Pivot levels to achieve better trading results.
Using the Camarilla Calculator for swing trading
Do you know that apart from intraday trading, in delivery trading too this tool can be used? Just we are calculating the next trading day’s levels using the calculator, we can input this week’s open, high, low and close data to get next week’s trading levels.
This can be used on every Friday or the last day of the week. Just input this week’s data in the calculator and you will get next week’s PP and S1 to S4 and R1 to R4. These levels can be used for swing or delivery trading. You will get a weekly buy level, short sell level. You will also get weekly breakout buy level and breakdown short sell level.
Camarilla pivot points strategy pdf
Download the chapter 7 of the ebook Secrets Of A Pivot Boss by Frank Ochoa. This chapter is all about the Camarilla Pivot Points as traded by this master trader. Download the pdf and follow the techniques of the master.
More information on the pivot point or camarilla trading system or other pivot point strategies has been posted on our trading strategy section.