Camarilla Good Edition Indicator for MT4

How to trade with Camarilla indicator

Camarilla Equation is known among forex traders as Camarilla pivot points.

Camarilla pivots are used for intra-day trading, it is a tool for Forex scalpers and short term traders alike.

Taking yesterday’s High, Low, Open, and Close Camarilla indicator calculate 10 levels: 5 “L” low levels and 5 “H” high level.
Most valuable and most often traded Camarilla pivot levels are L3, L4, and H3, H4.

The current Camarilla indicator also has built-in regular Pivot points and Fibonacci levels.
In indicator settings, you may turn off/on any levels you like to trade with.

The charts to be used for trading with Camarilla equation – 15 min, 10 min, 5 min and 1 minute.

Camarilla pivots trading rules

Watch for the market coming towards L3 or H3 level – these are the levels of entry – L3 Long and H3 Short.

L3 and H3 are Camarilla’s support and resistance levels accordingly. At support or resistance level market is expected o stop and reverse either temporarily or permanently. Forex

scalpers like these levels; however, trading this way is a hit-or-miss game, because the moment price hits L3 or H3 Camarilla pivot, it is not known yet whether there will be a stop

and reverse or not. Therefore, one could opt to wait a little bit longer, till signs of price reversal emerge: these are “shooting star” patterns, “hammer” candles and also reversal

patterns where market starts to close higher with every new bar upon hitting support (L3) or lower with each new bar upon hitting resistance (H3).

L3 and H3 Camarilla pivot levels hold price in while it moves sideways. Taking short profits is very important at this stage. This trading style will be carried out till a true trend starts – it will start with a breakout.

Trading Camarilla breakouts

Forex breakout trading with Camarilla equation involves L4 and H4 pivot levels. You may notice a margin between H3 and H4 or L3 and L4 level – that’s a no man’s land.

When trading Camarilla breakouts, Forex traders expect the market to continue running in the direction of the breakout. When L4 level is broken downwards – SEll. When H4 is broker upwards – BUY.

Profit targets are set to either L5 and H5 Camarilla levels or to Pivot point Support/Resistance level. Alternatively, you can scale out of the market each time a new level (Pivot or Camarilla) is hit – preferred exiting method.

Finally, if to examine Camarilla levels with Pivot Point levels in Forex, in our opinion, regular Pivot points have higher value, therefore, we see combining Camarilla trading with Forex Pivot points as a winning combination.

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