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Camarilla {b} Equation


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Hi guys,

 

I found a website http://www.surefirething.com/camarilla-equation.html that's selling it's services to use their formula by inputting the previous day HIGH, LOW, OPEN and CLOSE of ANY Liquid stocks, bonds, currency, options and index. From what I've see, it seems rather accurate due to it's performance on S&P 500...yet, needed to verify (http://www.surefirething.com/performance.php)

 

However, as most of us prefer to learn how to fish than to be fed, I wonder if any of you happen to sign up for this service, or know of the equations/formulas that they used.

 

Just a little overview, Camarilla {b} Equation, where {b} stands for breakout, is a new version of the original equation that gives you intraday points to go long or short, together with suggested stop losses and profit targets. It also, like the original equation, suggests the extremes of the day's action beyond which price is unlikely to go, in other words it contains the high and low.

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Thanks to pipburglar, German and szelee...do you guys happen to know the formula for it? I'll try to download the indicator. May need the help of you experts again. Once again, THANK YOU!

 

 

 

Just some thing simple off the link below, just Google it and there will be tons of info.

 

'Camarilla' equation uses a truism of nature to define market action - namely that most time series have a tendency to revert to the mean. In other words, when markets have a wide spread between the high and low the day before, they tend to reverse and retreat back towards the previous day's close. The Camarilla Equation uses some complicated mathematics to pluck 8 levels out of thin air, using nothing more than yesterday's open, high, low and close.

The Camarilla Equation produces 8 levels from yesterday's open, high, low and close. These levels are split into two groups, numbered 1 to 4. The pattern formed by the 8 levels is broadly symmetrical, and the most important levels are the 'L3', 'L4' and 'H3', 'H4' levels. While day trading, traders look for the market to reverse if it hits an 'L3' or 'H3' level. They would then open a position AGAINST the trend, using a stop loss somewhere before the associated 'L4' or 'H4' level. The theory suggests setting stoplosses that appear to you the trader to be prudent, and to not even open the trade until it has penetrated the level in the 'right' direction, i.e. demonstrated that it has found resistance (or support). In the case of the higher H3 level, this would mean that price had already reversed and pushed back down thru the level, heading south.

 

 

http://www.camarillaequation.com/

 

http://forex-indicators.net/mt4-indicators/camarilla

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Thanks to pipburglar, German and szelee...do you guys happen to know the formula for it? I'll try to download the indicator. May need the help of you experts again. Once again, THANK YOU!

 

 

I have uploaded the indy for you in case you are having trouble downloading it from the website. Link below.

 

http://hotfile.com/dl/120036705/f5800ca/camarilladt.mq4.html

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Thanks German! I've downloaded the link and put them on the MT4 indicator folder.

 

May I ask how do I change may it be on the MT4 software or the indicator to make the time in sync.

 

Thanks! Also, your explanation, with the help of the graphs (both of the links) also helps me alot, so that I don't have to visualize them. Once again, thank you so much in your explanation.

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szelee, just wondering if it's normal to not having L3? Cause all the charts that I've been looking at, they do not have L3 on it. I only saw L5 (lime), L4 (red), PivotPoint (yellow), H3 (red), H4 (blue) and H5 (lime). L3 is missing and I think it should have been blue colour if I'm not mistaken.

 

German, I've downloaded the indicator that you've given me. Thank you! Just wondering if you could teach me how to assign colours to the L3, H3, L4 and H4. Thanks!

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szelee, just wondering if it's normal to not having L3? Cause all the charts that I've been looking at, they do not have L3 on it. I only saw L5 (lime), L4 (red), PivotPoint (yellow), H3 (red), H4 (blue) and H5 (lime). L3 is missing and I think it should have been blue colour if I'm not mistaken.

 

German, I've downloaded the indicator that you've given me. Thank you! Just wondering if you could teach me how to assign colours to the L3, H3, L4 and H4. Thanks!

 

Hi Dluhut,

 

Sorry, I make a mistake in my program. Have corrected that:

 

http://www.multiupload.com/QRCT7LQGGU

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szelee, just wondering if it's normal to not having L3? Cause all the charts that I've been looking at, they do not have L3 on it. I only saw L5 (lime), L4 (red), PivotPoint (yellow), H3 (red), H4 (blue) and H5 (lime). L3 is missing and I think it should have been blue colour if I'm not mistaken.

 

German, I've downloaded the indicator that you've given me. Thank you! Just wondering if you could teach me how to assign colours to the L3, H3, L4 and H4. Thanks!

 

 

If you look at the options tab for the indicator, you will see something called GMT shift - the default is 0, but that is only accurate if your SERVER time is GMT. My server time is GMT+2, so I enter a 2 in that field. The options tab contains all sorts of choices for which levels to display, and what color to set them at. Hope this helps.

 

pb

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