*I'd like to make a few points first before y'all continue reading. This strategy is probably more of an intermediate to advanced strategy if you aren't comfortable reading a chart live. Additionally, I highly recommend testing this strategy first in either a paper account or a smaller section of your portfolio to ensure it becomes muscle memory first. Lastly, this is a longer post, you've been warned.* Most traders rely on **traditional pivot points**, but what if there was a *more precise way* to identify **intraday** turning points? That’s where Camarilla Pivots come in. Originally developed for institutional trading, Camarilla Pivots provide **high-accuracy** support and resistance levels, helping traders execute **high-probability entries and exits.** 📌 **In this guide, we’ll cover:** ✅ What Camarilla Pivots are & why they work. ✅ How to calculate & interpret Camarilla pivot levels. ✅ Best time frames & market conditions for Camarilla trading. ✅ Trading strategies using Camarilla Pivots (breakouts, reversals, & scalping). ✅ How to adjust stop-loss & take-profit based on volatility. ✅ Combining Camarilla Pivots with other indicators for higher accuracy. ✅ Common mistakes traders make & how to avoid them. ✅ A Camarilla Pivots cheat sheet for quick reference. Let’s dive in! 🚀 ———————————————— # 🔹 1. What Are Camarilla Pivots? Camarilla Pivots are a *variation of classic pivot points*, generating eight key price levels that act as hidden support & resistance zones. ✔ Ideal for *intraday & short-term* trading. ✔ *Automatically adjusts to volatility*—more reactive than standard pivots. ✔ Used by *professional traders* to scalp, fade reversals, and catch breakouts. 📌 **Camarilla Pivot Formula:** 🔹 *Resistance Levels (R1 - R4)* - R4 = Close + (High - Low) × 1.1 / 2 - R3 = Close + (High - Low) × 1.1 / 4 - R2 = Close + (High - Low) × 1.1 / 6 - R1 = Close + (High - Low) × 1.1 / 12 🔹 *Support Levels (S1 - S4)* - S1 = Close - (High - Low) × 1.1 / 12 - S2 = Close - (High - Low) × 1.1 / 6 - S3 = Close - (High - Low) × 1.1 / 4 - S4 = Close - (High - Low) × 1.1 / 2 📌 **Key Levels to Watch:** ✔ R4 & S4 → Major breakout or breakdown zones. ✔ R3 & S3 → High-probability reversal zones. ✔ R1-R2 & S1-S2 → Minor support & resistance, ideal for scalping. ———————————————— # 🔹 2. Best Time Frames & Market Conditions for Camarilla Trading 📌 **Best Time Frames:** ✔ 1-Min, 5-Min, 15-Min Charts → *Best for scalping & day trading.* ✔ 30-Min, 1-Hour Charts → *Ideal for swing trading short-term breakouts.* ✔ Daily Chart → *Less common, but helps with identifying broader trend pivots.* 📌 **Best Market Conditions:** ✔ High-volatility markets *(stocks like TSLA, NVDA, SPY, QQQ).* ✔ Range-bound conditions → *Perfect for mean reversion strategies.* ✔ Breakout conditions → *When price approaches R4/S4 with momentum.* 🚫 **Avoid using in:** ❌ Low-volatility, sideways markets with no catalyst. ❌ Extended trending markets where price ignores support/resistance. ———————————————— # 🔹 3. Camarilla Pivot Trading Strategies 📈 **A. Mean Reversion (Reversal) Strategy** 💡 **Objective:** Buy/sell when price touches extreme levels (S3/R3) & reverts toward the mean. ✔ **Enter long at S3** with confirmation (RSI oversold, bullish engulfing). ✔ **Enter short at R3** with confirmation (RSI overbought, bearish engulfing). ✔ **Profit target:** Midpoint or pivot level. ✔ **Stop-loss:** Slightly beyond S4/R4 to avoid stop hunts. ———————————————— 🚀 **B. Breakout Strategy** 💡 **Objective:** Enter when price breaks through R4 or S4 for a momentum trade. ✔ **Go long** if price breaks & holds above R4. ✔ **Go short** if price breaks & holds below S4. ✔ **Profit target:** Next key level or trailing stop. ✔ **Stop-loss:** Back inside the pivot range. ———————————————— 🔄 **C. Scalping Strategy** 💡 **Objective:** Trade quick bounces between minor pivots (R1-R3, S1-S3). ✔ **Scalp long** at S1-S2 with confirmation. ✔ **Scalp short** at R1-R2 with confirmation. ✔ **Profit target:** Next pivot level. ✔ **Stop-loss:** Tight stop below/above entry pivot. ———————————————— # 🔹 4. Adjusting Stop-Loss & Take-Profit Based on Volatility 📌 **For Scalping:** - Stop just below S1/R1 for tight risk. - Take profit at next minor pivot level (S2/R2). 📌 **For Reversal Trades:** - Stop below S4/R4 to avoid stop hunts. - Take profit at mid-range pivot or central pivot point (P). 📌 **For Breakouts:** - Stop back inside pivot range (below R4 or above S4). - Take profit based on next historical resistance/support zone. ———————————————— # 🔹 5. Combining Camarilla Pivots with Other Indicators 📌 **Best Indicators to Use:** ✅ **VWAP** → *Confirms institutional buying/selling pressure.* ✅ **RSI** → *Helps identify overbought/oversold conditions at pivot levels.* ✅ **ATR** → *Filters weak breakouts by measuring true volatility.* ✅ **MACD** → *Confirms momentum shifts near R3/S3 zones.* ———————————————— # 🔹 6. Common Mistakes to Avoid 🔴 **Trading every S3/R3 touch without confirmation** → Leads to false reversals. 🔴 **Ignoring volume/momentum at R4/S4** → Can cause fake breakouts. 🔴 **Using Camarilla Pivots in low-volume stocks** → Doesn’t work well in illiquid markets. 📌 **Tip:** *Always confirm trades with volume, RSI, and price action signals.* ———————————————— # 📌 Camarilla Pivots Cheat Sheet - **R4/S4** → Breakout zones - **R3/S3** → High-probability reversal zones - **R1-R2/S1-S2** → Scalping & minor support/resistance - **VWAP & RSI** → Best confirmation indicators - High-volume stocks **work best!** ———————————————— # 💬 Have You Used Camarilla Pivots in Your Trading? Do you prefer reversal setups, breakouts, or scalping with pivots? I'm excited to hear your thoughts! # 🎙️ StrategyTALK - Glossary🎙️ *A collection of interesting trade strategies.* https://afterhour.com/DoubleDownToWin/Cpi/strategytalk-glossary