Camarilla Pivot Trading Strategy — What Is It? (Backtest Analysis)

Day traders always look for ways to identify key intraday support and resistance levels. This is where the Camarilla pivot points come in. But what is the Camarilla pivot point trading strategy?

Introduced in 1989 by Nick Scott, a successful bond trader, the Camarilla pivot point is an extension of the classical/floor trader pivot point which provides day traders with key intraday support and resistance levels. It has four support and four resistance levels. The Camarilla pivot trading strategy is used for day trading and the way to trade it depends on the market conditions at a given time.

Let’s take a look at the Camarilla pivot points. At the end of the article, we make a backtest of the strategy.

What is the Camarilla pivot trading strategy?

The Camarilla pivot point is an extension of the classical/floor trader pivot point which provides day traders with key intraday support and resistance levels. It was introduced in 1989 by Nick Scott, a successful bond trader. The Camarilla pivot point indicator shows four support and four resistance levels, making it a total of nine levels.

It is a versatile indicator that allows traders to recognize key price levels, entry points, exit points, and appropriate risk management. The Camarilla pivot trading strategy is used for day trading and the way to trade it depends on the market conditions at a given time.

There are various Camarilla pivot point strategies to trade any financial market, and these are a few ideas you can backtest for day trading:

Trading Rules

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• The market opens above yesterday’s close and drops to the first pivot point support — you go long at the first support pivot point and exit at the day’s close.
• The market opens below yesterday’s close, but above the first pivot point support, and drops to the first pivot point support — enter at the first support pivot point and exit at the day’s close.
• The market opens below yesterday’s close and rises to the first PP resistance — go short at the first re