Even if Camarilla pivot sounds new, you are probably familiar with different types of pivot points as a crucial part of trading charts and technical analysis in general. Some of you have already used Fibonacci or Standard pivots to predict the price level as well as the moment it is going to revert.
Different types of pivot points make it possible for the trader to choose the best market entry or exit position. This fact makes that inevitable for both beginners and experienced players. With every new tool, you have a chance to expand your trading strategy. In this review, we will learn basic Camarilla pivot trading rules and trading strategies to use under real market conditions.
Baseline Camarilla pivots trading rules
The first thing you should know about the Camarilla pivot point is that it is a type of technical indicator. Traders use it whenever they need to recognize the price levels as well as identify the best market entry and exit points. The Camarilla pivot point has proved to be very versatile in terms of data it can generate.
It may be used along with trading risk management strategies. Users may implement it as a stand-alone Camarilla trading strategy depending on your goals. No matter how you plan to use the Camarilla pivot, always keep in mind that it is influenced by the market conditions within a given timeframe. As a result, the Camarilla trading strategy has several major forms depending on how and why a trader is going to use it.
To make things easier for beginners, in this article we will answer the following questions:
- What Is Camarilla pivot point?
- How to use the Camarilla trading strategy?
- What are the main Camarilla pros and cons?
Stay tuned and find out everything you need about this pivot point and trading opportunities it delivers out of the box.
Camarilla pivot point explained
As you already know, the classical or floor pivot point brings the key support and resistance levels to the trader. Camarilla pivot is an extension of those points. What's more. It consists of 4 support and 4 resistance levels that are located closer when compared to other pivot point types and variations. For this reason, Camarilla pivot works mainly with short-term trading tactics.
Common Camarilla trading strategies
Traders usually opt for several common approaches when using the Camarilla trading strategy. They depend on particular techniques and trading style. Here are the most common ways to trade using Camarilla pivot points.
Camarilla strategy is not the only one you can learn about. Read more about other strategies in our education section. MTrading allows using any strategies while providing one of the best trading conditions in the market. Start trading today!