History of the Camarilla
In 1989, a bond trader named, Nick Stott, observed different financial markets. As the results of his observations unveil, conditions tend to revert to the mean. Regardless of economic factors, it is not impossible for figures to resort back to yesterday’s.
Furthermore, it goes to show that support and resistance levels can be predicted with the use of past volatility. Furthermore, it reveals that once a wide spread between highs and lows during the previous day has been established, they are likely to retreat and reverse toward the closing price of the same day. The root of the discovery, you ask? He called it the Camarilla Formula.
The Camarilla Equation
High 1 = Closing Price + [(1.1 / 12) * (High – Low)]
High 2 = Closing Price + [(1.1 / 6) * (High – Low)]
High 3 = Closing Price + [(1.1 / 4) * (High – Low)]
High 4 = Closing Price + [(1.1 / 2) * (High – Low)]
Low 1 = Closing Price – [(1.1 / 12) * (High – Low)]
Low 2 = Closing Price – [(1.1 / 6) * (High – Low)]
Low 3 = Closing Price – [(1.1 / 4) * (High – Low)]
Low 4 = Closing Price – [(1.1 / 2) * (High – Low)]
In a nutshell, the SureFireThing Camarilla Equation is a trading system that will help you improve your market trading, no matter which way the market is going.
Content Reference: http://www.admiralmarkets.ae/education/knowledge-base/
Last update: 10. September
"Money is not an invention of the State. It is not the product of a legislative act. Even the sanction of
political authority is not necessary for its existence. Certain commodities came to be money quite naturally, as
the result of economic relationships that were independent of the power of the State."
Carl Menger - the founder of the Austrian school of economics