Camarilla Pivots
Camarilla Pivot Support & Resistance (How to Trade It)
What Camarilla Pivots are, how they define trend vs range, why institutions use them, the H3/L3 core zones, breakout vs. mean-revert setups, and precise long/short rules for both “open inside” and “open outside” scenarios.
Support & Resistance
Scalping
Department
OTM Academy
Category
Technical analysis
What Are Camarilla Pivots?
Camarilla Pivots automatically plot intraday support/resistance bands derived from the prior session’s high/low/close. They give a fast read on trend vs. range:
• Trend mode: price outside the H3–L3 zone (above H3 = bullish bias; below L3 = bearish bias).
• Range mode: price between H3 and L3.
Traders value Camarilla because markets naturally coil and gravitate around these bands, which institutions also monitor.
Why Traders Like Camarilla
Key advantages:
• Auto-recomputed every session.
• No hand-drawn zones required.
• Clear bias and targets from fixed bands.
Notation: H = High, L = Low.
Core Zones & Reading Bias
• H3 / L3 = balance band. Inside → range tactics; outside → trend tactics.
• H4 / L4 = continuation/defense lines used for stops when fading and as confirmation on breakouts.
• H5 / L5 = stretch/target zones for extended moves.
Scenario 1 — Open Between H3 and L3
When the new session opens inside the H3–L3 band, prepare for either a reversal (bounce) at the band or a breakout through it. Execute only when price touches a band and confirms.
Long Setups (from L3)
• Reversal long: buy on bounce at L3; stop below L4; targets = mid-range then H3.
• Breakout long: buy on break above H3; stop below L3/L4; targets toward H4, then H5.
Scenario 2 — Open Outside H3/L3 (Trend Mode)
If the market opens above H3 or below L3, trade with the prevailing trend on the first pullback to the band:
• Open between H3–H4 (longs only):
– Buy when price reclaims H4.
– Stop: just below H3.
– Target: H5 (trail under higher lows).
• Open between L3–L4 (shorts only):
– Sell when price breaks below L4.
– Stop: back above L3.
– Target: L5.
Note: Gap opens can be tricky if a swift gap-fill begins; scalpers sometimes still aim for 10–15 pips around the bands, but risk controls are critical.
Wrap-Up:
Camarilla levels provide a systematic read on intraday structure and ready-made plans for reversal vs. breakout. Define the session state (inside vs. outside H3/L3), pick the matching playbook, and anchor stops at H4/L4 with targets stepping to H5/L5.
