Camarilla pivot point formula is the refined form of existing classic pivot point formula. The Camarilla method was developed by Nick Stott who was a very successful bond trader. What makes it better is the use of Fibonacci numbers in calculation of levels.
Camarilla equations are used to calculate intraday support and resistance levels using the previous days volatility spread. Camarilla equations take previous day’s high, low and close as inputs and generates 8 levels of intraday support and resistance based on pivot points. There are 4 levels above pivot points and 4 levels below pivot points. The most important levels are L3 L4 and H3 H4. H3 and L3 are the levels to go against the trend with stop loss around H4 or L4. While L4 and H4 are considered as breakout levels, when these levels are breached, it is time to trade with the trend. At this indicator, there are 5 levels above pivot point and 5 levels below pivot points that exist in some reference and books and can be useful for traders.
- DeletePreviousDayLine - if true, Camarilla lines are drawn only for today, and if it is false, the lines are drawn for all days.
- HighColor - color of lines that are above the calculation price.
- LowColor - color of lines that are below the calculation price.
- LineWidth - width of all lines.