Supertrend With Camarilla Pivots
Supertrend Camarilla based Pivot + support and resistance levels.
E-Learn Markets Explanation:
A Super Trend is a trend following indicator similar to moving averages. It is plotted on price and the current trend can simply be determined by its placement vis-a-vis price. It is a very simple indicator and is constructed with the help of just two parameters- period and multiplier.
When we construct the Supertrend indicator strategy, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. The average true range (ATR) plays a key role in ‘Supertrend’ as the indicator uses ATR to compute its value and it signals the degree of price volatility.
Camarilla Pivot Points is a modified version of the classic Pivot Point.
Camarilla Pivot Points were introduced in 1989 by Nick Scott, a successful bond trader.
The basic idea behind Camarilla Pivot Points is that price has a tendency to revert to its mean until it doesn’t.
What makes it different than the classic pivot point formula is the use of Fibonacci numbers in its calculation of pivot levels.
Similar to classic pivot points, it uses the previous day’s high price, low price, and closing price.
Camarilla Pivot Points are a set of eight levels that resemble support and resistance values for a current trend.
These pivot points work for all traders and help in targeting the right stop loss and profit target orders.
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