Camarilla Pivot Levels for Reversal and Breakout Trading

Summary

Camarilla pivots use the prior session’s high, low, and close to calculate four resistance levels above the close and four support levels below it. The description assigns different roles to the inner and outer levels: the third levels can be used for trades against the prevailing move, with the fourth levels as potential stop areas, while breaks beyond the fourth levels are treated as continuation signals.

The included script calculates configurable levels and assigns a long or short position based on price crossing selected thresholds; it also offers a reverse-trading option. The code colors bars according to position and closes positions when its state is neutral. The material is educational and provides no backtest results or asset-specific evidence. Its rules simplify how levels may be interpreted, and the document does not specify execution assumptions, transaction costs, or risk sizing.

Key ideas

• Camarilla levels are derived from the previous session’s high-low range and close.
• The method creates four resistance levels and four support levels for intraday reference.
• The description presents third-level touches as possible countertrend setups and fourth-level breaks as breakout signals.
• The script lets users choose threshold levels and optionally reverse the resulting direction.
• No performance results, costs, or position-sizing rules are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.