The Camarilla Points strategy is based upon support and resistance levels calculated by the eponymous technical indicator.
When market opens within the S3-R3 range, it is supposed a premise for possible trend reversal, so Long Entry signal is given if market closes below S3; Short Entry signal if it closes above R3. Market opening outside the S3-R3 range might signify that trend will keep its direction; in this case, Long Entry signal is indicated when the market closes above S3 and Short Entry signal when it closes below R3.
Exit signals are indicated based upon the stop-loss levels S4 and R4 (in addition to the mentioned S3 and R3). Long Exit signal is given when either Low price falls below S4 or High price gets above R3. Short Exit signal is suggested when either High price rises above R4 or Low price is below S3.
|Defines aggregation period for Camarilla Points time frame.
|Defines duration for Camarilla Points time frame.
1. "Camarilla Points" by Slawomir Bobrowski. Technical Analysis of Stocks & Commodities, March 2013.