The Camarilla Pivots Indicator is a pivot-based support/resistance indicator that provides essential technical support in price-level analysis for MT4 users.
This indicator works similarly to the original pivot points indicator. However, it includes Fibonacci numbers to bring variations in plotting potential support/resistance levels on the chart. The horizontal levels are demonstrated based on a combination of Fibonacci retracement and pivot values.
Furthermore, the the Indicator for MT4 suits all sorts of timeframe charts. Also, you can apply it for forex instruments and stock trading.
The Camarilla Pivots Indicator demonstrates eight horizontal levels. The L1, L2, L3, and L4 levels are plotted based on the recent market lows that work as support lines.
On the other hand, the H1, H2, H3, and H4 levels are determined based on recent market highs. You’ll notice the price often stalls after hitting these levels and treat them as resistance.
The trading strategy of the Camarilla Pivots Indicator is plain and simple. When the price roams around the L1-L4 levels, we’ll look for bullish candlestick patterns for going long.
Conversely, aim for a sell order when the price rejects the H1-H4 levels and plots a bearish candlestick pattern.
Moreover, you can use the Camarilla Pivot levels to anticipate the active entries’ target and stop-loss areas. For instance, while buying, consider the top four lines as possible target zones and use the current support level as stop-loss.
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- The price enters inside the L1-L4 support zone
- A bullish candlestick pattern like a pin bar or false break occurs near the support level
- Exit long when the price gets rejected at resistance levels
- The price stalls inside the Hi1-H4 resistance zone
- A bearish candlestick pattern appears, confirming the price is rejecting the current resistance
- Take profit after the price turns upwards from support lines