# Camarilla Level Pivots Indicator For MT4

The Camarilla Level Pivots Indicator For MT4 plots support and resistance levels using the below calculations: Pivot Point = (High + Low + Close) / 3 Resistance1 = Closing Price + Range * 1.1/12 Resistance2 = Closing Price + Range * 1.1/6 Resistance3 = Closing Price + Range * 1.1/4 Resistance4 = Closing Price + Range * 1.1/2 Support1 = Closing Price - Range * 1.1/12 Support2 = Closing Price - Range * 1.1/6 Support3 = Closing Price - Range * 1.1/4 Support4 = Closing Price - Range * 1.1/2 where, Range = High - Low, for the time frame under review

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## Trading ideas with the Camarilla Level Pivots Indicator For MT4

This is an indicator we use mainly for discovering support and resistance lines in the markets. These support and resistance lines are drawn automatically through the use of pivot point levels. There are different pivot point level indicators which use different calculation methods for outputting support and resistance lines on your trading charts.

This particular trading tool uses the Camarilla computation to generate support and resistance lines. The main pivot point line is the one in the middle which is colored in yellow. Below the main pivot point line, you have a bunch of aqua blue lines which are your support lines then above your pivot line you have your red lines which are resistance lines.

These lines are generated through calculation and weighting that factors in a number of elements of the price data. These elements are as follows - high, low, close, and range. The introductory statement clearly specifies what that computation looks like in great detail - however it is not complicated to grasp at all.

Nevertheless, understanding the formula is great but the important thing is that we need to know how to use this indicator. A picture is shown below on how the indicator looks like in your chart. It is not a multi time frame indicator therefore it will always use the current time frame you are in to depict the pivot point levels.

It is an elegant and simple tool to have within your trading. Nevertheless, let us look explore a few ways in which we could use this indicator so that it can be of benefit to us. That is the ultimate aim of technical indicators - they were created for your benefit so use them to this extent.

## Camarilla Level Pivots Indicator For MT4 - Buy Entries

If you refer to the previous image you will notice that the market is trading in a downtrend but you should also take note of the candlestick sizes. The most recent set of candles are small in size.

This could be due to the fact that the selling pressure is subsiding therefore the market is accumulating orders in preparation for a bullish release to the upside. This is all just speculative right now but we can look for other clues.

With this indicator, we are looking to make buy trades on the support levels (aqua lines) though sometimes you will find that the R lines can be transformed into support levels - depending on what phase the market is in. But for now, let us turn our focus to the support lines in blue.

Just one more point - the pivot point line is both a support and resistance line so always be on the lookout for retests whenever the market does break and close below or above this line because you can get good entries following this method.

So looking at the picture we can see that the market is trading sideways in the support areas of the Camarilla indicator - meaning that the market could be in an oversold region therefore buying would be in our best interest if we are looking to profit from a reversal trade.

In the previous image you will see that I am using the one-hour chart, however - I am not going to be trading on this chart. I am going to trade on the 15-minute chart so what I am going to do is mark off the one-hour camarilla lines using the horizontal tool in the trading platform and then after doing that I will switch down to the lower time frame.

The images below provide a clear illustration of the highlighted steps taken. First up we have the image which shows the horizontal support and resistance lines marked off on the one hour chart:

Now that I have the support and resistance lines of the Camarilla levels marked off using the horizontal drawing tool - I will then switch down to the lower time frame. My time frame of choice is the 15-minute chart. This is the chart I will be using for executing trades.

You need not have to follow these exact same rules as far as time frames are concerned. The method just remains the same but you can use any other time frames when following this top-down approach. I deactivate the Camarilla indicator after switching down to the fifteen-minute chart. You can keep it if you wish but I prefer to take it off my chart because I already have my support and resistance lines drawn in.

Looking at the image I have presented two buying opportunities. Either the market sells off to the next support line then bounces off - that is our buy signal.

Or you could wait for the price to rally up beyond the next S line of the Camarilla as shown by the arrows - but you will need to wait for a retest before opening your buy.