Please find some more theory on Camerilla from http://www.camarillaequation.com/
"The SFT Camarilla Equation produces 8 levels from yesterday's open, 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.
The SFT theory suggests setting stoplosses that appear to you the trader to be prudent, and to not even open the trade until it has penetrated the level in the 'right' direction, i.e. demonstrated that it has found resistance (or support). In the case of the higher H3 level, this would mean that price had already reversed and pushed back down thru the level, heading south.
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The second way to try day trading 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 thru 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.
I just got hold of this yesterday and started observing from today and on today's nifty levels worked really well. Here are the levels given by Camerilla pivot -
H4 4517
H3 4465
H2 4448
H1 4431
L1 4396
L2 4379
L3 4362
L4 4311
Nifty took support at 4362 where as per Camerilla we shd go long with a stop somewhere between L3 and L4 depending on your appetite. A new fresh short position shd be initiated below L4 4311 intraday.
I am yet to find more on this. Will share soon.
Thx
Abhi
"The SFT Camarilla Equation produces 8 levels from yesterday's open, 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.
The SFT theory suggests setting stoplosses that appear to you the trader to be prudent, and to not even open the trade until it has penetrated the level in the 'right' direction, i.e. demonstrated that it has found resistance (or support). In the case of the higher H3 level, this would mean that price had already reversed and pushed back down thru the level, heading south.
====================================================================
The second way to try day trading 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 thru 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.
I just got hold of this yesterday and started observing from today and on today's nifty levels worked really well. Here are the levels given by Camerilla pivot -
H4 4517
H3 4465
H2 4448
H1 4431
L1 4396
L2 4379
L3 4362
L4 4311
Nifty took support at 4362 where as per Camerilla we shd go long with a stop somewhere between L3 and L4 depending on your appetite. A new fresh short position shd be initiated below L4 4311 intraday.
I am yet to find more on this. Will share soon.
Thx
Abhi
