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2013issue C0358-62

Constructing Camarilla levels from prior range

A camarilla-grid is a pivot-point overlay of ten horizontal support-resistance lines drawn from one lookback window of high, low, and close. The inner S3-R3 corridor and the outer rails give two different hypotheses from the same prior-range geometry.

  • Eight basic Camarilla levels are computed from session high, session low, and session close, and a fifth support and resistance pair is added to handle breakouts.
  • The first four levels equal the lookback close plus or minus the lookback-range multiplied by 1.1 divided by 12, 6, 4, or 2. The fifth resistance is the lookback close times the lookback high divided by the lookback low, and the fifth support is the close mirrored across that resistance.
  • An open inside the S3-R3 corridor is a defined support-resistance setup. Sample rule sets treat S3 and R3 crossings as reversal conditions and S4 and R4 crossings as breakout conditions, with the fifth pair used when price extends beyond those outer rails.
  • The same range-scaled formulas can be applied on a chosen multi-bar window. Computed values depend on both the selected time-frame length and the analysis start point.
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Current trackPivot point45 readingsSupport and resistance170 readings

A pivot-point ladder from one window

A camarilla-grid is a pivot-point overlay: a session-based price ladder derived from prior high, low, and close, realized as a Camarilla nest of levels rather than a classic floor-trader mid-pivot.

Eight basic levels are computed from session high, session low, and session close. Fifth support and resistance levels are added to handle breakouts. A complete overlay draws five resistance lines and five support lines as horizontal levels from the selected computation window.

Those lines are support-resistance bands projected from prior-range geometry and used as bounce, failure, or breakout reference prices.

How the levels are computed

The lookback-range is the high-minus-low width of the selected computation window.

The first four resistance and support levels equal the lookback close plus or minus the lookback-range multiplied by 1.1 divided by 12, 6, 4, or 2.

The fifth resistance equals the lookback close times the lookback high divided by the lookback low. The fifth support is the close mirrored across that fifth resistance.

The same range-scaled formulas can be applied on a chosen multi-bar window rather than only a single daily session.

The open-inside corridor and the outer rails

One defined support-resistance setup is the case in which the market opens inside the S3-R3 corridor. That inner pair is the open-inside reference for a first support-and-resistance hypothesis.

Sample rule sets treat S3 and R3 crossings as reversal conditions and treat S4 and R4 crossings as breakout conditions, with the fifth pair used when price extends beyond those outer rails.

Camarilla S3–R3 system equity on one S&P contract

Slightly negative equity through the 1980s and 1990s flips into a steep compounding run after 1999, which is the track record of the inner S3–R3 open-inside rules on one S&P futures contract. Yearly points were read from the TradersStudio equity curve; the source printed no table of these values.
Slightly negative equity through the 1980s and 1990s flips into a steep compounding run after 1999, which is the track record of the inner S3–R3 open-inside rules on one S&P futures contract. Yearly points were read from the TradersStudio equity curve; the source printed no table of these values.S&P futures · daily · 1982-01-01T00:00:00.000Z to 2012-12-31T00:00:00.000Z

The coded test entered and exited at the next session open rather than on the article’s S3/R3 stops. Sample is one SP contract, Pinnacle Data, 1982–2013. The underwater-equity inset is omitted because its vertical scale cannot be read on the raster.

Window length and start point

Computed level values depend on both the selected time-frame length and the analysis start point. A different window or a different start point produces a different set of horizontal levels from the same construction.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
20 of 38 in the Pivot point track
201310-16 pp.Next on Pivot pointCamarilla levels as a multi-timeframe map of reversion and breakoutCamarilla points are a specialized pivot-point map: several support and resistance levels taken from the prior session high, low, and close of a chosen time frame.
All readings on this track · 38 readings
  1. 1988Constructing action-reaction lines from two pivots
  2. 1988Constructing intradaily point-and-figure boxes and pivot ladders
  3. 1991Constructing layered support and resistance from swings, pivots, and retracements
  4. 1994Three locks on a day-session order, then a staged exit
  5. 1994Building a five-level daily pivot grid
  6. 1996Constructing daily pivot points from session prices
  7. 1996Higher time frame balance points as a trend and band filter
  8. 1998Cup-with-handle construction rules
  9. 2000Pivot levels as a daily trade hypothesis
  10. 2001Construct a same-session polarity card around the daily pivot
  11. 2001Trading inside the cup-with-handle before the breakout
  12. 2005A lower-low rebound as one entry, abstention, and stop routine
  13. 2006Constructing session pivot maps from the prior high, low, and close
  14. 2006Constructing a pivot grid for stops and buy-stops
  15. 2006Monoparametric automatic trendline construction
  16. 2008Write the exit before the entry
  17. 2010Dynamic-pivot range grids for trend bias
  18. 2010Reverse-entry exits for pairs, pivots and support
  19. 2011Sequencing pairs, futures pivots, and implied volatility
  20. 2013Constructing Camarilla levels from prior range
  21. 2013Camarilla levels as a multi-timeframe map of reversion and breakout
  22. 2013Constructing a camarilla-grid from a completed lookback range
  23. 2013Constructing daily pivot support and resistance rungs
  24. 2014Constructing daily pivot levels from prior-session OHLC
  25. 2014Next-session pivot support and resistance from daily bars
  26. 2014Constructing session pivot rails from the prior-day range
  27. 2014Evaluating moving-average, pivot, and support-resistance filters
  28. 2016Stage a Trailing stop toward a planned target
  29. 2016Smoothed RSI and full-cut pivots for option-income exits
  30. 2017Constructing a weekly seasonality pivot scaffold
  31. 2017Seasonality and pivot points as scenario maps, not forecasts
  32. 2018Wave pivots, strength filters, and option premium
  33. 2018Constructing Fibonacci and daily pivot support maps
  34. 2018Building a daily pivot lattice with Fibonacci rails
  35. 2019Prior-session pivot channels for same-day entries
  36. 2019Constructing intraday pivot channels from prior-session levels
  37. 2020Variable-strength pivot highs as falsifiable entry filters
  38. 2020A high-volume-pivot long after a multi-week decline
By fieldTrend and channels181 readingsBy year201398 readings
All 45 readings tagged Pivot point
Also on Pivot point5 readings
1988Constructing intradaily point-and-figure boxes and pivot ladders1991Constructing layered support and resistance from swings, pivots, and retracements1994Building a five-level daily pivot grid1996Higher time frame balance points as a trend and band filter2000Pivot levels as a daily trade hypothesis