Trading Nifty with Camarilla Pivots...!

linkon7

Well-Known Member
#1
I want to initiate a discussion on Camarilla Pivots. Basic objective is to trade Nifty intraday.

I have been using this method to trade nifty for the last one month and so far results have been satisfactory.

Trading capital : 2 Lakh
Lots traded : 4 (max capacity 8)

How this levels works : Refer to Rajendrani's thread. He has a excel file (in post #1) that can be downloaded from his thread to get the levels for the next day. Many thanks to him for doing such an extensive backtest.:clapping:

http://www.traderji.com/day-trading/27311-backtesting-trading-camarilla-pivots.html

Note : It is highly recommended that anyone who tries to trade this method do so only after they understand the risk involved.
 

linkon7

Well-Known Member
#4
Hi,
Its nice to see one more thread in my favorite method.
After read your post the first question raised in my mind is how your thread different from rajendrani's "Backtesting and trading camarilla pivots.
Anyway nice initiative done by you..
Cheer up and wish to be a successful one.

Regards,
S.Saravanan
No point reinventing the wheel. :p

Radha55 has done a great Job on this. Rajendra took it further. The objective is not to be different. Its consistency and better execution thats the focus here.
 

linkon7

Well-Known Member
#5
Mind set : Why cam levels... and how I intend to play it...?

Mind set : Why cam levels... and how I intend to play it...?

Lets look at why cam levels work.

Say a stock made a high of 200, a low of 100 and finally closed at 150. Bulls were ready to buy it even at 200, bears were willing to sell it as low as 100 and the fight between them ended bang in the middle, 150.The battle between the bulls vrs the bears is evenly matched for the next day.

conventional pivot will tell you that the pivot (high + low + close divided by 3) is at 150. Above 150 we can buy as bulls are in charge and below 150 bears will take over the match. Next day if the stock opens between 155-160, we can go long since most indicators will give us a buy signal, but the probability of success is 55-60%. However if the bears take charge and bring it to 145-140 region, most of our stop loss gets triggered, we might switch direction and decide to go short. probability of success still remains at 55-60%. stocks always has a tendency to revert back to the mean (point of control-POC-value area). Any trade initiated around this area has a far higher chance of a whipsaw and hitting stoploss both ways.

Cams help us by avoiding trades in this region. The levels generated for our example are :
H4 : 205 --> break out in the up side, go long wt SL at H3
H3 : 178 --> Strongest resistance, Go short wt SL at H4
L3 : 123 --> Strongest support, Go long wt SL at L4
L4 : 95 --> Breakdown, Go short wt SL at L3

Trades are initiated only if price comes between the H3 and H4 level or between the L3 and L4 level. H3 is treated as strong resistance and short trade at this level has a 78% probability of success.

We reverse at H4 or L4. At 205 or 95, balance between bulls and the bears is totally one sided with one group with good profit and willing to add more, while the other group is at a loss and is looking to book losses adding to the pressure.

Cam levels can be played by themselves but its always advisable to add your fav setup to compliment the decision making process.

I follow Woodies CCI intraday panel and guppy MMA and take trades based on cam levels. This has helped me eliminate whipsaws to a great extent and improve my average win to average loss ratio.
 

linkon7

Well-Known Member
#7
Trade analysis of 18th Dec...!

On 18th, Cam levels for nifty were :

H4 - 5069
H3 - 5052

L3 - 5020
L4 - 5003

Previous 2 days lows were : 5008 (17th) and 5004 (16th)
Previous 2 days High were : 5068 (17th) and 5072 (16th)



Nifty opened at L3, made a high of 5035 and finally broke L3.

Trade 1 :
Long Entry at 5018.
reason : CCI made a double bottom and when the horizontal resistance line was broken, that confirmed our entry.
stop loss : The horizontal line at cci.
exit : trendline broke of cci 14 at 5030.

Trade 2 :
Long entry at 5022
reason : trendline break of cci -14
stoploss : initially, 5003 as it was L4 and then trailed to the Zero line as that was the next support line.
reversal : 5041 trendline break.

Trade 3:
short at 5041
reason : trendline break of cci 14, high made was 5049 close to H3
stoploss : 5052 (H3) innitially and then support line at cci 14.
exit : 4991, as second hook from extreme in cci had a divergence.

No Further long trades could be initiated as L3 (5020) was not broken and cci continued to make higher lows and did not sustain above the zero line for 6 bars for a trend reversal.
 

linkon7

Well-Known Member
#8
Trade analysis of 17th Dec...!

On 17th, cam levels of nifty were :
H4 : 5078
H3 : 5059

L3 : 5022
L4 : 5003

previous days lows were 5004 ( 16th) and 5017 (15th)
previous days highs were 5072 (16th) and 5125 (15th)



Trade1
long entry : 5025
reason : hook from extreme.
SL : 5003 initially
exit : 5039
reason : Tl break

Trade2
long entry @ 5021
reason : inverted H&S pattern
SL : shoulder as Support innitially, then then next hook, then horizontal support line finally break to give us reversal at 5056

Trade3
short at 5056
support line formed a nice inverted H&S pattern but the nech line did not break.
a trendline finally broke giving us exit at 5024
 

linkon7

Well-Known Member
#9
Trade analysis of 16th Dec...!

On 16th, Cam levels for nifty were :

H4 - 5090
H3 - 5060

L3 - 5001
L4 - 4971

Previous 2 days lows were : 5017 (15th) and 5090 (14th)
Previous 2 days High were : 5125 (15th) and 5167 (14th)




Trade 1
Long Entry @ 5009
reason : Tl break
SL : CCI hook point
exit : 5020 TL break

Trade 2
Long entry @ 5015
reason : Tl break
SL : trailed at every hook until it broke finally in the H3 region. warranting a reversal at 5062.

trade 3
short at 5062
exit : Resistance line broken @ 5029
 

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