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What is Camarilla? How it came into existence? Who first thought of trading
with this method?
Camarilla is a method used for doing intraday trading in various markets like Forex, Equities,
Futures, Commodities.. and the list goes on.
The Camarilla method of trading was discovered while day trading in 1989 by Nick Stott. Nick
Stott is a successful bond trader in the financial markets. Nick Stott invented this method from
his interest in Fibbonacci levels and a branch of technical analysis called 'Market Profiling'. He
was working as a bond trader back in the 80's, and started to notice that there were regular
patterns emerging every day, differing only in scale. After some data analysis he developed the
equation for Camarilla.
What are Simple Camarilla Levels? What are they called? What each level
signifies? How to trade using each level?
Camarilla Equation produces 8 levels from yesterday's high, low and close. These levels are split
into two groups, numbered 1 to 4. The pattern formed by the 8 levels is broadly symmetrical, and
the most important levels are the 'L3', 'L4' and 'H3', 'H4' levels. While day trading, traders look
for the market to reverse if it hits an 'L3' or 'H3' level. They would then open a position
AGAINST the trend, using a stop loss somewhere before the associated 'L4' or 'H4' level.
Detailed process is explained below.
The another way to day trade with the Camarilla Equation is to regard the 'H4' and 'L4' levels as
'breakout' levels - in other words to go WITH the trend if prices push through either the H4 or L4
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
level. This essentially covers all the bases - Day Trading within the H3 and L3 levels enables you
to capture all the wrinkles that intraday market movement throws up, and the H4 - L4 breakout
plays allow the less experienced trader to capitalise on relatively low risk sharp powerful
movements.
H4 = [0.55*(H-L)]+C
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
H3 = [0.275*(H-L)]+C
H2 = [0.183*(H-L)]+C
H1 = [0.0916*(H-L)]+C
L1 = C-[0.0916*(H-L)]
L2 = C-[0.183*(H-L)]
L3 = C-[0.275*(H-L)]
L4 = C-[0.55*(H-L)]
The another way to day trade with the Camarilla Equation is to regard the 'H4' and 'L4' levels as
'breakout' levels - in other words to go WITH the trend if prices push through either the H4 or L4
level. This essentially covers all the bases - Day Trading within the H3 and L3 levels enables you
to capture all the wrinkles that intraday market movement throws up, and the H4 - L4 breakout
plays allow the less experienced trader to capitalise on relatively low risk sharp powerful
movements.
L1 = C-[0.0916*(H-L)]
L2 = C-[0.183*(H-L)]
L3 = C-[0.275*(H-L)]
L4 = C-[0.55*(H-L)]
L5 = (formula not shared) – Available at (http://www.pivottrading.net)
L6 = (formula not shared) – Available at (http://www.pivottrading.net)
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
Advanced Camarilla Levels provide two extra levels on each direction. These two levels on each
direction provide the target1 and target2 if trading is performed based on breakout.
To put in simple words, if you buy the underlying above H4, Target 1 = H5 and Target 2 = H6.
Similarly, if you sell the underlying below L4, Target1 = L5 and Target 2 = L6.
On 6th Oct 2010, The open price for Reliance was 1030.
This price is between H3(1027) and H4(1034). The open price falls under Scenario 2. Buy
Triggered at H4(1034) (see the image below for intraday chart of Reliance.)
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
On 6th Oct 2010, The open price for SunPharma was 2078.
This price is between H3(2070) and H4(2079). The open price falls under Scenario 2.
Sell Triggered at H3(2070) (see the image below for intraday chart of Sun Pharma.)
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
As seen from the image above, short triggered at H3(2070) twice during the day.
During first trade, Target1 = L1(2058) and Target2 = L2(2055) got achieved.
During second trade, Target1, Target2 and Target3 = L3(2052) got achieved.
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
On 7th Oct 2010, The open price for Tata Steel was 680.
This price is between H3(680) and L3(673). The open price falls under Scenario 1. Sell
Triggered at H3(680) (see the image below for intraday chart of Tata Steel.)
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
On 7th Oct 2010, The open price for TCS was 960.
This price is between H3(965) and L3(955). The open price falls under Scenario 1.
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk
Intraday Trading Using Camarilla and Advanced Camarilla
By Sourabh Gandhi (sourabh_gandhi@yahoo.com)
I have tried to explain few scenarios mentioned here with the help of example.
Do some paper trading with this strategy and if this method suits you, you can start real money
trading with this strategy.
Websites
http://pivottrading.50webs.com http://www.pivottrading.net
http://livecharts.50webs.com http://livecharts.awardspace.co.uk
http://trade2win.weebly.com http://pivottrading.awardspace.co.uk