TRADING EMOTIONS @ CAMARILLA LEVELS

TRADING EMOTIONS @ CAMARILLA LEVELS

As a Price Action trader and Intraday trader, I rely very much on the Support and Resistance levels for Good Location to enter the trades. Getting on board before flight takes off is prudent step (in fact – only step if you want fly high) rather than jumping on the flight… it is not our metro train or bus …. Right…. Same way: – Great location to enter the trade is stepping-stone for success of intraday trader. Some of the much explored locations for trade entries are high and low of previous day, Point of control of volume profile/ market profile, Intra-Vwap levels, Reversals areas /signals from candlesticks, shoulders and waists of Kagi charts, reversals patterns in point and figure charts, Support and Resistance levels drawn from candle stick charts , Pivots based on Fibonacci, Camarilla, Demark, Woodie etc……

I was never believer of any line/ lines on the charts and felt that they were more of obstacles to my trade and thought process, until I was exposed into the simple philosophy of profits in trading by Mark Douglas. I was egoistically ignorant, presuming that whole of the profits from my trading is based on my decision and location to trade. When I understood, my one tick profit is based on the order of the next trader (which I have no control) who believes the price is still cheap and bets on my decision for his/her entry…..This simple fact gives the enormity of  the market levels. I consider it has bus stops, railway station, airports with population waiting to get on board!!!!! This draws the relation of price to volume (Courtesy: Tom Williams and Anna cooling ) And that is one of reason for my love to VWAP as intraday trader.

Among many levels and locations, I pointed out, I have made great trades with Camarilla levels, and then retrospectively I fine-tuned my intraday trading system with camarilla levels, vwap and point figure chart. While this post is not about the strategy per se, it highlights the camarilla levels for the respect it deserves…….

Camarilla level was introduced by Nick Scot, a bond trader…… Iam neither Nick, nor bond……Iam Sathya NR,.. levelled intraday player……. The following exploration of Nick mind is my own logic and I may be as wrong as “Bank Nifty”.  With no explanation on logic of camarilla over available study material, I came up with the following ……

Understanding “ Maths of camarilla in English” ( I can hear some of your inner voice saying … Also say English in English……..)

Formulae:

Resistance levels = Close + (range: high-low)*1.1/2 ( the fraction can go on as 1.1/4,6,12…..)

Support levels = Close – (range: high-low)*1.1/2,4,6,

How can some levels of lines can act so well many times??? Is it pure coincidence or can it be some logic?? That was the main essence of my exploration and the same I am sharing with all .  The maths of camarilla levels is standing on two pillars. One is the previous high and low range and the fraction of multiplication factor of 1.1 Let me speak in English……  When can one say, I am preforming better or worse than my previous effort?…. Can we say for sure- when my effort is more than previous effort and the results of my effort reflects better than last time .. right ?? so “better” in maths is more than 100% … so simple life is, if the results is more 1.1 times then we can say it definitely better and hence the resistance and support levels of factorial of 1.1 has got profound influence..  More details will be “out of syllabus” for us , hence I would like to draw my line … here….. Will it work all times ???? No, never…..but still it is the place where line of symmetry is gone and the bell curve is more skewed!!!!  So expect some action…….

Wyckoff’ians, like me will agree to the theory of Effort vs Results. So emotions at these levels are high with just more than 100% ( the difference between ordinary and extra-ordinary is just little EXTRA)  of previous range, little fraction more than 100% is enough to show the tip of the iceberg. And as price action trader, I am there where ever emotions are there, whenever volume is there, whenever I see strong signals at these levels ….. because I look for opportunities of entries at these locations.

Hence my trading system is @ cam levels, with VWAP, Signals from Noiseless charts…. What more can I ask for as intraday trader?

See you all @ camarilla levels……

Happy trading,

Signing off,

Sathya NR

 

    • As a Price Action trader and Intraday trader, I rely very much on the Support and Resistance levels for Good Location to enter the trades. Getting on board before flight takes off is prudent step (in fact – only step if you want fly high) rather than jumping on the flight… it is not our metro train or bus …. Right…. Same way: – Great location to enter the trade is stepping-stone for success of intraday trader. Some of the much explored locations for trade entries are high and low of previous day, Point of control of volume profile/ market profile, Intra-Vwap levels, Reversals areas /signals from candlesticks, shoulders and waists of Kagi charts, reversals patterns in point and figure charts, Support and Resistance levels drawn from candle stick charts , Pivots based on Fibonacci, Camarilla, Demark, Woodie etc……

      I was never believer of any line/ lines on the charts and felt that they were more of obstacles to my trade and thought process, until I was exposed into the simple philosophy of profits in trading by Mark Douglas. I was egoistically ignorant, presuming that whole of the profits from my trading is based on my decision and location to trade. When I understood, my one tick profit is based on the order of the next trader (which I have no control) who believes the price is still cheap and bets on my decision for his/her entry…..This simple fact gives the enormity of  the market levels. I consider it has bus stops, railway station, airports with population waiting to get on board!!!!! This draws the relation of price to volume (Courtesy: Tom Williams and Anna cooling ) And that is one of reason for my love to VWAP as intraday trader.

      Among many levels and locations, I pointed out, I have made great trades with Camarilla levels, and then retrospectively I fine-tuned my intraday trading system with camarilla levels, vwap and point figure chart. While this post is not about the strategy per se, it highlights the camarilla levels for the respect it deserves…….

      Camarilla level was introduced by Nick Scot, a bond trader…… Iam neither Nick, nor bond……Iam Sathya NR,.. levelled intraday player……. The following exploration of Nick mind is my own logic and I may be as wrong as “Bank Nifty”.  With no explanation on logic of camarilla over available study material, I came up with the following ……

      Understanding “ Maths of camarilla in English” ( I can hear some of your inner voice saying … Also say English in English……..)

      Formulae:

      Resistance levels = Close + (range: high-low)*1.1/2 ( the fraction can go on as 1.1/4,6,12…..)

      Support levels = Close – (range: high-low)*1.1/2,4,6,

      How can some levels of lines can act so well many times??? Is it pure coincidence or can it be some logic?? That was the main essence of my exploration and the same I am sharing with all .  The maths of camarilla levels is standing on two pillars. One is the previous high and low range and the fraction of multiplication factor of 1.1 Let me speak in English……  When can one say, I am preforming better or worse than my previous effort?…. Can we say for sure- when my effort is more than previous effort and the results of my effort reflects better than last time .. right ?? so “better” in maths is more than 100% … so simple life is, if the results is more 1.1 times then we can say it definitely better and hence the resistance and support levels of factorial of 1.1 has got profound influence..  More details will be “out of syllabus” for us , hence I would like to draw my line … here….. Will it work all times ???? No, never…..but still it is the place where line of symmetry is gone and the bell curve is more skewed!!!!  So expect some action…….

      Wyckoff’ians, like me will agree to the theory of Effort vs Results. So emotions at these levels are high with just more than 100% ( the difference between ordinary and extra-ordinary is just little EXTRA)  of previous range, little fraction more than 100% is enough to show the tip of the iceberg. And as price action trader, I am there where ever emotions are there, whenever volume is there, whenever I see strong signals at these levels ….. because I look for opportunities of entries at these locations.

      Hence my trading system is @ cam levels, with VWAP, Signals from Noiseless charts…. What more can I ask for as intraday trader?

      See you all @ camarilla levels……

      Happy trading,

      Signing off,

      Sathya NR

       

    • Brilliantly worded. Whenever one learns of a new trading style, I have seen most traders just want to know HOW to trade using it. I have seen very few traders go deep into the WHY, HOW of it. You have done that and tried to explore the reason of its simplicity.

      Moreover, instead of running from system to system, you have successfully adapted it to your existing trading style.

      Well done ??

      You have set an example for others.

      I hope others also try to learn and create/tweak their own trading system based on the learnings here and identity.

    • Thanks a lot for your encouraging words. It means a lot (like VSA to me:) ) to get it from you, sir. This will propel many  to create “Great Location” in our forum!!!!

    • Hi Sathya – Wonderful read. While most of this is still in greek for novice like me but it certainly gives us a starting point and reasons to explore more. Watched AP sir’s video too on Insight too post reading this and will certainly keep looking for more from you. Been reading your daily posts and those are wonderful and simply amazing. As Mark Douglas rightly mentioned that Consistency is the key. Hope to learn concepts and adapt rather than keep searching for Invisible holy grail as AP sir and KK sir mentioned.

      Thank you so much for keep posting those.

      Thanks

      Rajeev

      • HI Rajeev, enjoy trading

    • Hi Sir,

      can anyone make an understanding video about that how to use Camarilla and VWAP together, it will really help our new traders like me who is newly  join to trade point software,

      Thank you in advance

      Thanks

      Shrikant

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