Trends/Support and resistance

Camarilla pivot points

Pivot levels packed tightly around the previous close, with outer levels far out for large moves.

Support and resistanceBest on 3M, 6MAlso called Camarilla levels
Camarilla pivot points diagramIllustration of the Camarilla pivot points shape. It is a sketch, not real price data.R1R2R3R4S1S2S3S4
Illustration of the Camarilla pivot points shape. It is a sketch, not real price data.

What it shows

Camarilla levels are built from the previous close and range. Most of the lines sit close to the close, and the outer lines are farther out.

Traders using them often watch the inner lines for turns and the outer lines for large moves. The layout comes from the formula, not from market behavior.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Take the previous period's high (H), low (L) and close (C), and range R = H − L.
  2. R1 = C + 1.1 × R ÷ 12, R2 = C + 1.1 × R ÷ 6.
  3. R3 = C + 1.1 × R ÷ 4, R4 = C + 1.1 × R ÷ 2.
  4. S1 to S4 are the same distances below C.

Starting values: Multiplier 1.1; Levels R1–R4, S1–S4; Period previous day. These are proposed and will be tuned on real price data before launch.

How to read it

  • The levels are symmetric around the previous close.
  • R3 and S3 are the inner turn lines and R4 and S4 are outer limits.
  • Price between S3 and R3 is within a normal range for this formula.

Status labels you may see

LabelWhat it means
Between S3 and R3Close is within the inner range.
Beyond R3 or S3Close is past the inner lines.
Beyond R4 or S4Close is past the outer lines.

What cancels it

Nothing cancels it. The levels are recalculated each period.

What traders check next

  • Which line price turned at most recently.
  • The range of the previous period.
  • Whether a move beyond R4 or S4 happened.

Limits

  • The formula uses only three numbers.
  • It is mainly used on short periods.
  • Versions differ in the multiplier.

Try it in forecastviz

  • Open any ticker and choose Support and resistance → Camarilla pivot points in the left menu.
  • Switch between 3M, 6M to see how the picture changes.
  • Compare with Classic pivot points and Fibonacci pivot points on the same chart.

Questions

Where does the 1.1 come from?

It is part of the standard formula. Different sources use slightly different forms.

Is it better than classic pivots?

It is different, not better. It sets levels closer to the close.

Related trends

Further reading

  • Murphy, Technical Analysis of the Financial Markets
  • Edwards and Magee, Technical Analysis of Stock Trends

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.