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Camarilla Equation is known among forex traders as Camarilla pivot points. Camarilla pivots are used for intra-day trading, it is a tool for Forex scalpers and short term traders alike. Taking yesterday’s High, Low, Open and Close Camarilla indicator calculates 10 levels: 5 “L” low levels and 5 “H” high level. Most valuable and most often traded Camarilla pivot levels are L3, L4 and H3, H4.

Current Camarilla indicator also has built in regular Pivot points and Fibonacci levels. The charts to be used for trading with Camarilla equation – 15 min, 10 min, 5 min and 1 minute. Watch for the market coming towards L3 or H3 level – these are the levels of entry – L3 Long and H3 Short. L3 and H3 are Camarilla’s support and resistance levels accordingly.

At support or resistance level market is expected o stop and reverse either temporarily or permanently. L3 or H3 Camarilla pivot, it is not known yet whether there will be a stop and reverse or not. L3 and H3 Camarilla pivot levels hold price in while it moves sideways. Taking short profits is very important at this stage.