Camarilla Market Pivots

Camarilla pivots are a set of calculated support and resistance levels that traders use in financial markets. They are based on yesterday's price range and are utilized by traders to identify potential reversal points in the market.

How to Use Camarilla Pivot Points and Their Calculation

Camarilla pivot points are a set of pivot points used in trading to determine potential support and resistance levels. These pivot points are calculated based on yesterday's high, low, and close prices. The formula for calculating Camarilla pivot points is as follows:

R4 = C + ((H - L) * 1.1 / 2)

R3 = C + ((H - L) * 1.1 / 4)

R2 = C + ((H - L) * 1.1 / 6)

R1 = C + ((H - L) * 1.1 / 12)

PP = (H + L + C) / 3

S1 = C - ((H - L) * 1.1 / 12)

S2 = C - ((H - L) * 1.1 / 6)

S3 = C - ((H - L) * 1.1 / 4)

S4 = C - ((H - L) * 1.1 / 2)

In this formula:

R = Resistance levels

S = Support levels

C = Closing price of the previous day

H = High price of the previous day

L = Low price of the previous day

To use Camarilla pivot points, traders can plot these levels on a chart to identify potential areas of support and resistance. These levels can help traders make informed decisions about entry and exit points in the market.

Overall, Camarilla pivot points are a useful tool for traders to analyze price movements and make trading decisions based on calculated support and resistance levels.

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