Camarilla Pivots Daily are similar to traditional pivot levels in that a main pivot is established with support and resistance levels above and below. Check out our Indicator Spotlight post on the Camarailla Pivots (with video) for an in depth discussion on how they may be applied.
Indicator Description
The Daily Camarilla Pivot Point is yesterday’s close. The input for the camarilla support / resistance formulas is based on the previous session’s high, low, and close. The Daily Camarilla Pivot Point levels are then calculated as follows:
- Range = High – Low, for the prior day
- R1, R2, R3, R4, R5 – Resistance levels
- S1, S2, S3, S4, S5 – Support levels
- R5 = (High / Low) * Close
- R4 = Close + Range * (1.1)/2
- R3 = Close + Range * (1.1)/4
- R2 = Close + Range * (1.1)/6
- R1 = Close + Range * (1.1)/12
- S1 = Close – Range * (1.1)/12
- S2 = Close – Range * (1.1)/6
- S3 = Close – Range * (1.1)/4
- S4 = Close – Range * (1.1)/2
- S5 = (Close – (R5 – Close))
The resulting levels above and below the Daily Camarilla Pivot Point, establishes areas of support and resistance.
To conclude, the Daily Camarilla Pivot Points are simple and versatile support / resistance levels. They can be used in both sideways and trending markets for reversal and breakouts setups. Specifically, the S3 and R3 levels can be used to initiate reversal trades, whereas the S4 and R4 levels signal breakout scenarios.
The idea is to wait for the prices to interact with the Camarilla Pivot levels, prior to considering setups. Furthermore, these support / resistance levels may also be combined with other tools for technical analysis, i.e. trend filters and/or momentum oscillators.
Other Library indicators
Other Camarilla Pivots available from our Library includes the Camarilla Weekly Pivots, Camarilla Monthly Pivots and the Camarilla N-Monthly Pivots. Additional Pivot indicators available from the Session Tools category include Daily Pivots, Weekly Pivots, Monthly Pivots and the N-Monthly Pivots indicators. Finally, the library contains Hourly Pivots, Rolling Pivots Daily, Rolling Pivots Weekly and Rolling Pivots Monthly. Our blogs have further information on trading with Pivot Points and the use of rolling pivots for trend detection.
Furthermore, you may consider average daily range levels for support / resistance. Our Indicator Spotlight discussed the Daily Range Projections and the Weekly Range Projections / Monthly Range Projections are also available from our Volatility Indicators category.
The Daily Camarilla Pivot Points indicator is available for NinjaTrader 8 and is compatible with our LizardRenko bars.
