Camarilla Pivot Points in Forex

Camarilla Pivot Points are a variation of traditional pivot points that use the previous period's high, low, and close to calculate a set of potential support and resistance levels for the next trading period.

The method produces four resistance levels (R1–R4) and four support levels (S1–S4).

How Are Camarilla Pivot Points Calculated?

Let:

• H = previous period's high
• L = previous period's low
• C = previous period's close

The Camarilla levels are calculated as:

R1 = C + (H - L) × 1.1 / 12

R2 = C + (H - L) × 1.1 / 6

R3 = C + (H - L) × 1.1 / 4

R4 = C + (H - L) × 1.1 / 2

S1 = C - (H - L) × 1.1 / 12

S2 = C - (H - L) × 1.1 / 6

S3 = C - (H - L) × 1.1 / 4

S4 = C - (H - L) × 1.1 / 2

The calculations place a ladder of reference levels above and below the previous close.

How Are the Levels Interpreted?

Camarilla traders often pay particular attention to R3, R4, S3, and S4.

The inner levels can be used as areas where price may react or revert, while the outer levels can be watched for stronger expansion or breakout behaviour.

The important Piplix principle is that these are reference levels, not instructions to automatically buy or sell.

Price still needs to be read in context.

Camarilla vs. Classic Pivot Points

Both methods use information from the previous trading period.

Classic pivot points begin with a central pivot and calculate support and resistance around it.

Camarilla Pivot Points instead create a tighter set of multiple levels around the previous close using a different formula.

Neither system predicts what price must do when a level is reached.

Why Do Camarilla Pivot Points Matter?

They give traders a repeatable way to map potential intraday reaction zones before the next session develops.

This can help organize a chart by showing where price is approaching a pre-calculated reference rather than drawing every level subjectively.

Their usefulness improves when they are considered alongside actual price structure, support and resistance, volatility, and other confluence.

Key Takeaway

Camarilla Pivot Points create eight calculated support and resistance references from the previous period's high, low, and close.

Treat the levels as areas to observe, not guaranteed turning points or breakout signals.