Camarilla vertex fx indicator

[NCDindia]

The Camarilla is a powerful vertex FX indicator which provides the support, resistance and pivots based upon daily price values.

This indicator is very useful to determine daily limits of trading, and the levels at which the market enters into resistance or support zones. It provides two support levels (S3 and S4) and two resistance levels (R3 and R4). To calculate these levels, we first calculate the previous day's range, which is previous day's High minus previous day's Low.

We calculate R4 as previous close plus 0.55 times previous day's range.R3 is calculated as previous close plus 0.275 times previous day's range.

Similarly, S3 is calculated as previous close minus 0.275 times previous day's range.
S4 is calculated as previous close minus 0.55 times previous day's range.

The daily prices tend to stay within the S3 and R3 band. So, reversal strategies can be employed between S3 and R3. Breakout strategies can be employed beyond S4 and R4.

BUY - This indicator does not provide BUY signals.
SELL - This indicator does not provide SELL signals.