What are Camarilla Values?

Camarilla values are the support and resistance points which great scholars have derived after a long research. Many traders globally trade using Camarilla Values. The Camarilla trading strategy is a technique that has an great accuracy and reliable performance for day-trading equities. Camarilla rules and calculations are simple. We need to input the previous day's high, low and close. The using below formula. Camarilla provides us with 8 values

H4 = Close + (High - Low) * 1.1/2

H3 = Close + (High - Low) * 1.1/4

H2 = Close + (High - Low) * 1.1/6

H1 = Close + (High - Low) * 1.1/12

L1 = Close - (High - Low) * 1.1/12

L2 = Close - (High - Low) * 1.1/6

L3 = Close - (High - Low) * 1.1/4

L4 = Close - (High - Low) * 1.1/2

Scenario 1: Price opens at or between L 3 and H 3 When price opens between L3 and H3, we will use the following rules: BUY: Let the price move to L3. At L3, BUY with a stop loss placed five points below L4. Profit targets for this trade are H1, H2 and H3. SELL: Let the price move to H3. At H3, SELL with a stop loss placed five points above H4. Profit targets for this trade are L1, L2 and L3. Scenario 2: Price opens at or between L3 and H3 When price opens between L3 and H3, rule is: BUY: Let the price move to L3. At L3, go long with a stop loss placed five points below L4. Profit targets are H1, H2 H3.