Camarilla Pivot Points Methods

^{Camarilla Pivot Points Levels}

The Pivot Points Method is one way to find the best entry and exit levels for trading. There are many methods to find and calculate pivot points, such as standard pivot points, the Camarilla method, the Woodie method, etc. Here, I describe the basic concept and major levels of Camarilla Pivot Points.

Camarilla

The Camarilla method uses the previous day's high, low, and close levels to calculate the pivot point and possible support and resistance levels. There are eight major levels: four supports and four resistances. Each level is calculated by multiplying the previous range by a specific multiplier.

The core concept of Camarilla Pivot Points is that the price may revert back to the mean value. In this theory, the previous close is considered the mean level.

In Camarilla Pivot Points, the third and fourth levels are the most important. The third level of support or resistance is the point where a trader is recommended to buy or sell the asset. If the price breaks through the fourth level of support or resistance, it is considered that the trend is strong enough to continue along the recent breakout trend, so traders could choose to ride the trend.

However, this is also a basic early-day recommendation, so traders should analyze price movement carefully to determine if this recommendation fits the asset's behavior.

This post is also published on Medium on April 23, 2025, by the same author.