Camarilla Pivot Points Forex Strategy

The Camarilla Pivot Points Forex strategy takes advantage of pivot points to determine relevant support and/or resistance levels.

This is usually because forex pairs are known to fluctuate around these important levels.

Range-bound traders are known to initiate a buy order when they see price around notable support levels and a sell order when the asset is drifting around the upper resistance.

Our strategy is built to enable trend and breakout traders spotting major areas that provide great buy and sell trade opportunities.

The Camarilla Pivot Points Forex strategy gives traders more excellent ways to get more attuned to market movements.

Chart Setup

MetaTrader4 Indicators: camarilla-pivot-points.ex4 (Default Setting), kaufman-adaptive-moving-average.ex4 (Inputs Variable Modified; periodAMA=14), jevel-histogram (Inputs Variable Modified; Length=28)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If price is seen to bounce off a key support level on the camarilla-pivot-points Metatrader 4 forex indicator as shown on Fig. 1.0, the general market sentiment is said to be bullish i.e. a trigger to go long on the designated forex pair.
  2. If the blue dotted gray line of the kaufman-adaptive-moving-average custom indicator gets aligned slightly below the candlesticks (see Fig. 1.0), price is said to be driven to the upside, thus a trigger to buy the selected currency pair.
  3. If the lime green vertical bars of the jevel-histogram indicator pops up within its window as seen on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy alert will suffice.

Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. Watch out for levels where price shows resistance on the camarilla-pivot-points indicator during a bullish signal as an indication of a looming bearish reversal, hence an exit or take profit is recommended.
  2. If kaufman-adaptive-moving-average pops up a red dot on its gray line while a buy alert is ongoing, more bulls are said to be closing their positions, as such an exit or take profit will suffice.
  3. If the jevel-histogram indicator pops up a dark orange histogram within its window while a bullish signal is ongoing (refer to Fig. 1.0), it is indicative of weaning bulls power, thus an exit or take profit is advised.

Sell Entry Rules

Go short if the following setups gets displayed rightly on the activity chart:

  1. If price is seen to bounce off a key resistance level on the camarilla-pivot-points indicator as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish i.e. a trigger to go short on the currency pair of interest.
  2. If the red dotted gray line of the kaufman-adaptive-moving-average forex indicator gets aligned fairly above the price bars as exemplified on Fig. 1.1, price is said to be pressured lower, thus a trigger to go short on the designated fx pair.
  3. If the dark orange vertical bars of the jevel-histogram indicator pops up within its window as illustrated on Fig. 1.1, bears power is said to be overwhelming, thus a trigger to sell immediately.

Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. Watch out for levels where price reveals support on the camarilla-pivot-points indicator during a bearish signal as an indication of an impending bullish reversal, hence an exit or take profit is apt.
  2. If kaufman-adaptive-moving-average pops up a blue dot on its gray line while a sell alert is running, more bears are said to be closing their positions, as such an exit or take profit will do.
  3. If the jevel-histogram indicator pops up a lime green histogram within its window while a bearish signal is on (check Fig. 1.1), it is indicative of diminishing bears power, thus an exit or take profit stance is welcomed.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The camarilla-pivot-points is a technical indicator that plots critical support and/or resistance levels on the activity chart.

The kaufman-adaptive-moving-average is a variant of the adaptive moving average.

It’s built on an exponentially smoothed moving average and mixed with traditional methods of spotting and applying volatility as a dynamically varying smoothing constant.

The jevel-histogram is a trend confirming indicator that shows how well a trend is doing.

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