Levels and Flow Using the Camarilla Levels Indicator
The Camarilla levels indicator is a powerful tool for intraday traders. It generates daily pivot levels based on previous close. These levels act as dynamic support and resistance. Price often flows between them, revealing market structure.
Learn how to apply the Camarilla levels indicator for NinjaTrader for both futures and forex.
How Camarilla Levels Show Flow
Camarilla provides eight levels—four support (S1-S6) and four resistance (R1-R6). Price bouncing between S3/R3 shows range-bound flow. Breaks beyond S4/R4 signal strong trends. Volume price analysis (VPA) confirms flow—high volume on breaks validates conviction.
Practical Application with Quantum Tools
Use Camarilla on MT5 or NinjaTrader for clear visuals. Focus on S3/R4 for resistance in uptrends. R3/S4 for support in downtrends. Quantum’s Camarilla indicator includes alerts for level interactions. Anna Coulling’s VPA approach enhances these for better timing.
This indicator turns daily levels into flow maps. Combine with Quantum tools for confident intraday trading decisions. Spot reversals or continuations early.
The History of Camarilla Levels and Why Quantum’s Version Is Different
Camarilla levels are a classic intraday trading tool. They originated in the 1980s with Nick Scott, a successful bond trader. Scott developed the method while trading on the floor. It was based on pivot points used by traders to identify support and resistance. The name “Camarilla” comes from a group of influential advisors—reflecting hidden market forces.
How Traditional Camarilla Levels Work
Standard Camarilla calculates 8 daily levels from the previous session’s high, low, and close. Four resistance (R1-R4) above. Four support (S1-S4) below. Levels act as dynamic zones:
- R3/R4 and S3/S4 for breakouts.
- R2/S2 for range bounds.
Traders fade extremes or trade breaks. Volume price analysis (VPA) confirms—high volume at levels shows conviction.
Why Quantum Camarilla Is Different: 6 Levels and Built-In Signals
Quantum Trading enhanced the classic method. We extended to six levels each side—R1 to R6 and S1 to S6. This provides deeper granularity:
- R2/S2: Core rangebound zone.
- R3/R4 and S3/S4: Primary breakout triggers.
- R5/R6 and S5/S6: Extreme reversal or acceleration points.
Quantum adds signals—alerts on level touches, breaks, or retests. This saves time. No manual watching.
Advantages for Traders
Extended levels catch moves others miss. Signals notify instantly. Multi-timeframe support aligns daily with intraday. VPA integration—high volume at Quantum levels validates conviction.
Anna Coulling’s VPA approach with Quantum Camarilla turns pivots into disciplined trades. Quantum on NinjaTrader or MT5 makes it visual and reliable.
Camarilla levels have stood the test of time. Quantum’s 6-level version with signals elevates them for modern trading. Discover the difference today.
By Anna Coulling