Weekly Camarilla R5 and S5 Reversal Entries

Summary

This script builds Camarilla levels from the prior week’s high, low, and close. It computes R4 and S4 as inner levels and R5 and S5 as outer extremes, then plots all four levels on the chart. The strategy uses the outer levels as rejection zones: it shorts when price reaches or exceeds R5 and closes back below it, and goes long when price reaches or falls below S5 and closes back above it.

Positions target the corresponding inner level, R4 for shorts and S4 for longs. No stop loss is specified, leaving losses potentially open-ended if price continues against a trade. The document describes the approach and provides Pine Script, but gives no performance statistics or validation results. It suggests use across several markets and intraday timeframes, yet the strategy’s suitability is not demonstrated. Its weekly reference values are drawn from prior-week data; traders should account for implementation details when assessing whether the historical signals are free of lookahead bias.

Key ideas

• Prior-week high, low, and close are used to calculate Camarilla R4/R5 and S4/S5 levels.
• A short signal requires price to test R5 and close below it.
• A long signal requires price to test S5 and close above it.
• The strategy exits at R4 for shorts and S4 for longs, without a stop loss.
• The document provides no backtest performance evidence.

Tags

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