Weekly Camarilla R5 and S5 Reversal Strategy

Summary

This strategy calculates Camarilla R4, R5, S4, and S5 levels from the prior week's high, low, and close. It looks for rejection at the outer R5 and S5 levels: a short signal occurs when price reaches or exceeds R5 but closes below it, while a long signal occurs when price reaches or falls below S5 but closes above it. The stated targets are R4 for shorts and S4 for longs.

The document provides the formulas and entry and exit rules, but no backtest results or performance evidence. It describes the method as mean reversion and names crypto, forex, and index markets as possible use cases, with several intraday chart intervals suggested. There is no stop loss, and the document cautions that strong trends can undermine the reversal premise. The code uses prior-week data for its levels; the document's description of the strategy as non-repainting is not accompanied by validation. Traders would need to assess execution, risk, and market-specific behavior independently.

Key ideas

• Weekly pivot levels are derived from the previous week's high, low, and close.
• A close back inside R5 after reaching it triggers a short entry signal.
• A close back above S5 after reaching it triggers a long entry signal.
• The strategy targets R4 for shorts and S4 for longs, with no stop loss specified.
• The document gives no performance results and warns that strong trends may hurt the approach.

Tags

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