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.