Camarilla Pivot Forex Scalping Trading System

The Camarilla Pivot Forex scalping trading system is a perfect strategy that determines significant support and resistance levels that can be used to define critical buy/sell market trades.

This strategy enhances the viability of the Camarilla pivot points by tying the Camarilla indicator to other technical indicators i.e. Trix MT4 and Average Directional Moving Index.

The strategy ensures we trade levels that the market is respecting during big volume trades.

The rules of the system are simple and is a versatile tool for scalpers, day and swing traders alike.

MT4 Chart Setup

MetaTrader4 Indicators: Camarilla.ex4 (Default Setting), Trix.ex4 (Default Setting), Average Directional Movement Index.ex4 (Parameters Modified; Period=14)

Trade Recommendations

Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month

Trading Sessions: any

Currency Pairs: any pair + Gold

Trade Style: scalping, day trading, swing trading

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Buy Trade Example: GBP/USD (Great British Pound / United States Dollar), M5 Chart

Fig. 1.0

Strategy

Buy Trade Setup

Open a buy trade when the following conditions are met:

  • The ADMI MT4 indicator should be seeing its ADX (light sea green) line break above the 20.00 level, while also printing the +DI (yellow-green) line crossing above the -DI (wheat) line, thus indicating a bullish trend.
  • The blue and red lines of the Trix indicator should be crossing above the zero-horizontal level indicating a bullish trend reversal.
  • Price shows significant support on the Camarilla pivot point indicating a bullish trend reversal (see region around point “A” on Fig. 1.0).

Stop Loss

Set the stop loss below the pivot level.

Take Profit

  • Close the trade as soon as the ADMI indicator’s +DI (yellow-green) line intersects the -DI (wheat) line.
  • Alternatively, close the trade for a predetermined profit target, for example exit the buy trade for +25 pips TP on the 5-minute time frame, or if the blue Trix indicator line dips below the zero-horizontal level.
  • Then again, close the position if a significant resistance level is determined on the Camarilla pivot levels.

Sell Trade Example: GBP/USD (Great Britain Pound / United States Dollar), M5 Chart

Fig. 1.1

Sell Trade Setup

Open a sell trade when the following conditions are met:

  • The ADMI indicator should be seeing its ADX (light sea green) line break above the 20.00 level, while also printing the -DI (wheat) line as it crosses above the +DI (yellow-green) line, thus indicating a bearish trend.
  • The blue and red lines of the Trix indicator should be crossing below the zero-horizontal level indicating a bearish trend reversal.
  • Price shows significant resistance on the Camarilla pivot point indicating a bearish trend reversal (see region around point “A” on Fig. 1.1).

Stop Loss

Set the stop loss above the pivot level.

Take Profit

  • Close the trade as soon as ADMI indicator’s -DI (wheat) line intersects the +DI (yellow-green) line.
  • Alternatively, close the trade for a predetermined profit target, for example exit the buy trade for +25 pips TP on the 5-minute time frame, or if the blue Trix indicator line surges above the zero-horizontal level.
  • Then again, close the position if a significant support level is determined on the Camarilla pivot levels.

Free Download

Download the Camarilla Pivot Forex Scalping Trading System

About The Forex Technical Indicators Used

The Camarilla indicator is pivot tool that plots accurate levels of support and resistance, which could serve as potential entry or stop-loss levels.

The Triple Exponential Moving Average or Trix momentum indicator that was developed by Jack Hutson in the 1980’s and finds its use in the spotting of percentage change in a triple exponentially smoothed moving average.

The Average Directional Movement Index Metatrader 4 indicator is a technical tool that reveals the ratio of the ADX lines. It can be deployed to determine the strength/direction of the market.

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