Developing Camarilla Pivots by Hexaurum Learning

Mathematical Foundation
The Camarilla Formula
The Camarilla pivot levels are derived from the following key price parameters of the preceding trading session:
C = Prior day's closing price
H = Prior day's high price
L = Prior day's low price
Resistance Levels:
H5 = (H / L) × C (proprietary derivation for identifying extreme
resistance)
H4 = (H 3 L) × 1.1 / 2 + C
H3 = (H 3 L) × 1.1 / 4 + C
H2 = (H 3 L) × 1.1 / 6 + C
H1 = (H 3 L) × 1.1 / 12 + C
Support Levels:
L1 = C 3 (H 3 L) × 1.1 / 12
L2 = C 3 (H 3 L) × 1.1 / 6
L3 = C 3 (H 3 L) × 1.1 / 4
L4 = C 3 (H 3 L) × 1.1 / 2
L5 = C 3 (H5 3 C) (symmetrical derivation mirroring H5)
The Significance of the 1.1 Multiplier
The inclusion of a 1.1 multiplier in the formula incorporates a buffer for anticipated volatility expansion. The sequential divisors (2, 4, 6, 12) generate a
series of levels with decreasing incremental distances from the closing price, with each level delineating distinct probabilistic trading zones for potential
mean reversion or trend continuation.