A friend of mine (who happens to be an expert Day-Trader) has been talking about Camarilla Pivot Points for quite a long time and explained its relationship with the Fibnoacci Levels. However, I never understood the concept very well until he explained the whole process. The problem is that most of us think that its as easy as Buying and Selling when price touches the L3 or H3 levels … actually its not.
Those who love Fibos must look at how Camarilla can improve their Trading in general …
Camarilla helps you to determine the Upper and Lower channels for a day, you still need to ensure that you enter into trade at the best time. A combination of Camarilla, RSI and Moving Averages is all he uses … Timing and Patience are also quite important as you’ll have to wait for the price to not only reach to the Buy and Sell zones but also wait for the proper signal of price start trending …
Another feature is the ability to help you Not to Trade certain pairs / markets during a particular period / day. EURUSD chart below is the perfect example of why not to trade that pair on that day …
Note: Camarilla has a special reputation for being Spot-on with the Future Markets, thats why I've included a couple of examples (FTSE100 and NASDAQ) for you guys.
Hope you’ll find it useful …