BackCamarilla Levels Indicator
Camarilla Levels indicator: It consists of several levels; traders usually use 6 levels, 3 on top and 3 at the bottom. Calculation of the levels requires: -Highs and lows of the previous day -Closing prices of the previous day Levels are calculated using the following formula: H1= c + (h-l)*1.1 /12 H2= c + (h-l)*1.1 /6 H3= c + (h-l)*1.1 /4 H4= c + (h-l)*1.1 /2 H5 = (h/l)*c L1= c - (h-l)*1.1 /12 L2= c - (h-low)*1.1 /6 L3= c - (h-l)*1.1 /4 L4= c - (h-l)*1.1 /2 L5 = c - (H5 - c) Where с – closing price, h – the highest price, l – the lowest price. Levels H1, H2, L1, L2 are usually not taken into the account. Trading strategy Rebound tactic – L3 and H3 as potential reverse levels. Breakout tactic – the punch-through of the buffer zone. L5 or H5 is a goal, and StopLoss is at L3 or H3 respectively. Trading in the buffer zone is not recommended.