Secrets of Camarilla Pivot

  The secrets of Camarilla Pivots

 

CPR indicator is an analysis tool and it is not designed for trade entries. Kindly use it for trade enhancement.

 There are two types of camarilla pivots, standard camarilla pivot and expanded camarilla pivots.

What is the difference between the standard camarilla pivot and expanded camarilla pivot?

Standard camarilla pivots consist of eight lines R1, R2, R3, R4 and S1, S2, S3, S4 but the expanded camarilla pivots consist of 10 lines R1, R2, R3, R4, R5 and S1, S2, S3, S4, S5.

 What is the advantage of the Camarilla Trading Setup?

it is a beginner-friendly day trading set-up. It has a proper Entry point, stop-loss and target, and also you can easily place the trade with proper risk reward.

 

As we said above it has 10 lines but we use only six important levels to execute our trades, other levels are low probability trade levels so we are not discussing it now.

The important levels are R3, R4, R5 and S3, S4, S5.

R3- Sell Reversal Level.

R4- Bullish Breakout Level.

R5- Target.

S3- Buy Reversal.

S4- Bearish Breakout.

S5- Target.

 

Buy Set up

Entry at R4.

Target at R5.

Stoploss at R3.

 

Shorting Set Up

Entry at S4.

Target at S5.

Stoploss at S3.

 

How to identify the presence of Institutions in a stock or index?

 Do you think the retailer can move the market from one level to another one? Of course not, then who can make an impact in the market? Definitely the Institutions, right?

Retailers can’t break the R4 and S4 levels, these are the levels usually institutions take the stock or index to another level, retailers can’t do that, it needs smart money to make a significant change in the market.

CPR Trade Tip:

1. Narrow CPR indicates Trending market
2. Wide CPR indicates Sideways market


How To trade using this setup:

Whenever there is a Narrow CPR, we need to look for Breakout Trades (H4 or L4 Breakout Trade Setup)

Whenever there is a Wide CPR, we need to look for Reversal Trade (L3 or H3 Reversal Trade Setup).