Here at Quantumtrading, we understand that trading can be challenging, but by combing our Time-Adjusted Renko, (exclusive to Tradingview) and Camarilla levels, we were able to spot a great trade in the cad/jpy pair. The Renko helped us identify a potential entry point once the price had moved away from the volume point of control. We then used the Camarilla pivots to determine where the price might pause. Our Camarilla indicator provides traders and investors with different levels across timeframes. For charts up to, but not including, the hourly chart, the levels are refreshed daily. For the hourly to daily chart, they’re valid for the week, and for the weekly and monthly charts, they’re valid for the entire month.
When using the Camarilla indicator, it’s important to keep in mind that the third and fourth levels are the most significant regarding the price movement pausing or reversing. Having different levels across timeframes allows us to have more specific targets and objectives.
How Does the Camarilla Indicator Work and How Does It Update Every Day?
The Camarilla pivot indicator is a popular intraday tool for forex, futures, and stock traders. It generates daily support and resistance levels from the previous session’s price data. This helps identify potential reversal or breakout zones. Traders use it for entries, stops, and targets. Volume price analysis (VPA) confirms conviction at these levels—high volume shows real interest.
How the Camarilla Indicator Works
Camarilla calculates levels using a specific formula based on the prior day’s high (H), low (L), and close (C):
- Central pivot isn’t used directly like standard pivots.
- Levels cluster closer to price—emphasizing intraday range.
Standard 8 levels (R1-R4 resistance, S1-S4 support):
- R4/R3 and S4/S3: Outer extremes—potential reversals or strong breakouts.
- R2/S2: Inner range—consolidation zones.
Quantum Trading enhanced it to 6 levels each side (R1-R6, S1-S6). This adds depth—R5/R6 and S5/S6 for extreme moves. Quantum also includes signals—alerts on touches, breaks, or retests.
Daily Update Process
Camarilla levels recalculate every day at session close:
- Use previous trading day’s H, L, C.
- New levels plot for the current day.
- No weekly update—it’s intraday focused. Daily reset adapts to fresh volatility.
This daily refresh makes it dynamic. Levels change with market conditions. Quantum on NinjaTrader or MT5 automates this perfectly.
Trading Camarilla with VPA
VPA adds conviction:
- High volume bounce at level = strong support/resistance.
- Low volume rejection = reversal potential.
- High volume break = momentum continuation.
Quantum signals notify instantly. This saves time.
Why Camarilla Works
Levels reflect psychological zones. Traders watch them—self-fulfilling. Quantum’s extended version with alerts elevates precision.
Camarilla indicator works by daily recalculation from prior range. Quantum’s 6 levels and signals make it superior. VPA confirms conviction at zones.