Camarilla Pivots is a measure that provides accurate and automated resistance and support levels.
The indicator has a central pivot point and the indicator has four support levels and four resistance levels.
In this article, we will learn about the unique features and nuances that make up this Camarilla Pivots indicator for MT4.
What is the Camarilla Pivots indicator?
Its Camarilla Pivots draw resistance and support levels in the chart. They take advantage of the day’s low, high and closing prior levels. They can also be useful resistance and support levels.
The Camarilla Pivots indicator is based on the same principle. It identifies resistance and support levels. It consists of eight resistance and support levels, including CL1 Cl2, CL2, CL4 and CH1. CH2, CH3 and CH4.
The indicator is built on the following levels.
H = High of the previous day
L = low of the previous day
C = the previous day’s closing price
The most critical levels are CL3, CH3, CL4, and CH4.
CL3 and CH3 both represent breakout levels. If these levels are broken, now is the time to trade in accordance with the current trend, while CL4 and CH4 are the levels to move away from the trend.
How to use How to use the Camarilla Pivots indicator?
This indicator can be used to spot market trends and can also be used for sideways trading.
It is exchanged based on the opening price of the next day (or trading session).
Based on where the price is and where it ends, the tool will suggest the best trades to profit from a pullback to the mean, or a breakout to a new high or low.
If you are bullish, apply the indicator to buy at a pre-determined level of support. If you are bearish in direction, then you can use the Camarilla reversal to sell close to a resistance level.
Pivot Point Trading Strategy
CamPivot is invaluable in identifying important opening moments when the trend is in place.
You should filter your entry based on the direction of the trend. When the market is in an uptrend, look for buying opportunities in CL3 and set a stop loss in CL4. In the case of a declining market price, you should sell CH3 and place a stop loss in CH4.
Find CL3 on the chart.
Watch the price bar closely until it starts to change direction and turn bullish.
Enter at CL3
Set stop loss on CL4
Exit at CH1
Find CH3 on the chart.
Watch until the price bar starts to change from bearish to bullish.
Enter at CH3
Stop loss at CH4
Exit at CL1
End of the line
Camarilla Pivot Camarilla Pivot is a useful indicator for identifying important resistance and support levels, as well as entries and exits. You can also use it together with momentum-based indicators (such as RSI) to confirm signals.