Overview

The words powerful, unique and game changing are ones that are often overused when applied to trading indicators, but for the Quantum Camarilla levels indicator, they truly describe this new and exciting indicator completely.

Why? Because the indicator has something to offer every trader, from the systematic to the discretionary and from swing trading to breakout trading. And it’s not an indicator which is simply used for entries. The Camarilla indicator delivers in all areas, from getting in to getting out as well as stop loss placement. All in one single indicator which perhaps explains its unique appeal and power to those traders in the know. Now, it’s all here just waiting for you to discover the power of the Camarilla protocol and apply this unique indicator to your own trading and investing tactics.

So what is the Camarilla protocol, how does it work and what will it do for me? These are all good questions, so let’s get straight down to basics and explain how the indicator works and how you may wish to use it.

Let’s start with the last of these questions first, as this is one of the unique aspects to this indicator. Put simply it is a chameleon of an indicator and will appeal whether you are a more discretionary type of trader, making and taking decisions yourself, or if you prefer a more systematic or mechanical approach often associated with an EA for example. With the Camarilla levels indicator both approaches can be embraced and accommodated.

The Camarilla protocol has its roots in the open outcry trading pits, where traders considered floor pivots an essential tool. Based on these original ideas and incorporating the Camarilla equation we have developed a unique indicator which delivers clear and precise price based support and resistance levels, which act as targets for profits, triggers for potential reversals, signals for possible breakouts, and finally stop loss placement. So, if you’re a swing or reversal trader, it’s the perfect indicator. Equally, if you prefer breakout trading, again it’s the perfect indicator. And all with predetermined and clear levels for any price objectives and profit targets, with stop loss placement, covered also.

In other words a complete indicator, and one which is delivered with potential trading setups built in to help you see when key levels are being approached or breached.

The indicator works in a complex way, but the data is presented simply using six levels above the price action and six levels below. Those above are labelled R1 to R6 and those below S1 to S6 with the region between R1 and S1 which we describe as the ‘buffer zone’. These levels are calculated for the different timeframes in different ways.

For daily timeframes and above the levels remain the same for the month, and they are then recalculated at the start of the new month. For intraday timeframes these are recalculated at the start of each new daily session.

Reversal Trading

For reversal trading the key levels to watch are S3 and R3. These are levels which when approached signal potential reversals. So when price is approaching and tests the S3 level below the buffer zone, a reversal to the upside may be on the horizon. In other words a reversal from a bearish trend to a bullish trend in that timeframe. Equally, when price is approaching and testing the R3 level above the buffer zone, then a reversal is possible with the bullish price action reversing to bearish. In both cases the next level then denotes the level for the stop loss. For a reversal off the S3 level higher, the stop loss could be placed at S4 and for a reversal off the R3 level, the stop loss could be placed at the R4 level – assuming these levels fit your risk and money management rules.

The potential price targets are then as follows:

For an R3 reversal the profit targets are from S1 to S3.

For an S3 reversal the profit targets are from R1 to R3.

Breakout Trading

For breakout trading the key levels are the R4 above the buffer zone and the S4 below. These are levels at which the price is expected to breakout from the current region and develop a strong move away from the region. So any move to test and break the R4 level is likely to see price continue higher and develop a strong trend. Equally if the S4 level is tested, then price is likely to continue lower and develop a strong trend.

For an S4 breakout the profit targets are S5 to S6

For an R4 breakout the profit targets are R5 to R6

Using the Camarilla levels in this way offers a complete solution to two distinct approaches to trading, and in addition, also provide potential target levels along with suggested stop loss positions, but as always these must meet your risk and money management rules.

And it is important to understand the indicator and associated levels can be adopted in two very distinct ways.

First, if you are more suited to mechanical trading where you feel more comfortable with a rule set, then the levels can be considered as your rule set. However, if you are more suited to discretionary trading then the indicator is a perfect complement to other Quantum indicators such as the support and resistance indicator, which again is one based purely on price, and so helps to reinforce levels delivered by the Camarilla protocol. Other indicators such as the Trend Monitor also work perfectly in association with this indicator.

The Camarilla levels indicator works in all timeframes on both standard and custom charts, and in every market, so can be used to trade stocks, commodities, forex or indices on the TradingView platform.

So whether you’re a discretionary trader who prefers swing trading, or a breakout trader who is more systematic, the Camarilla levels indicator can deliver it all.

To help you when using the indicator we have also included some simple messages to guide you as the various levels are approached and tested. These appear as follows :

  • If the current open price is between R3 and S3 the indicator displays the words – Possible mean reversal trade is on the horizon
  • If the current open price is between S3 and S2 the indicator displays the words – Possible long position now on the horizon
  • If the current open price is between R3 and R2 the indicator displays the words – Possible short position now on the horizon
  • If the current open price is between R3 and R4 the indicator displays the words – Possible breakout now on the horizon for a long position
  • If the current open price is between S3 and S4 the indicator displays the words – Possible breakout now on the horizon for a short position

When there is nothing of interest, the indicator displays the message – Analysing the chart…

You can of course elect to switch these messages off, and they are only included to alert you to possible set ups occurring.

Format

By clicking the indicator’s Format button, you can configure the Quantum Live Camarilla Levels Indicator’s inputs and style according to your preferences. The Format button appears as a small cog/gear icon beside the name of the indicator at the chart. Clicking the button shows a dialog box for configuring the Inputs and Style options.

Inputs

Show Labels

To help you identify which level is which, we have added labels at the end of each line. You can hide these labels by un-ticking this property.

Show Analysis

Quantum Live Camarilla Levels constantly analyzes price movement and displays it as a message in a box located at the top right corner of the chart. If you prefer to turn off this feature, you can un-tick this property to hide the box.

Style

TradingView allows you to customize the indicator’s appearance by changing the properties of each of its plots/lines.

S1 & R1

Stands for Support 1 and Resistance 1 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to red. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

S2 & R2

Stands for Support 2 and Resistance 2 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to orange. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

S3 & R3

Stands for Support 3 and Resistance 3 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to yellow. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

S4 & R4

Stands for Support 4 and Resistance 4 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to green. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

S5 & R5

Stands for Support 5 and Resistance 5 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to blue. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

S6 & R6

Stands for Support 6 and Resistance 6 levels.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to purple. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Circles. You can choose other types by clicking the drop-down menu.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

Shapes and Analysis plots

These plots are collectively responsible for rendering the labels and the analysis box. We recommend keeping the settings of these plots as it is to maintain the consistency of the labels and the analysis box.

Precision

This determines the number of decimal places the indicator uses to display the current value of its lines. You can adjust this by choosing from a drop-down list.

Scale

You can choose either Pin to Right or Pin to Left.

  • Pin to Right is the default option. This displays the indicator labels at the right-hand side of the indicator.
  • Pin to Left displays the indicator labels at the left-hand side of the indicator.