Camarilla indicator for forex

Camarilla indicator for forex

The R4 & S4 are key levels on the Camarilla indicator. This section of the London forex webinar explains why in relation to the EUR/aud pair.

00:10

Introduction to CSI and session rotations

00:10

The speaker revisits the Euro/US Dollar pair, discussing a pattern where a strong move in one trading session is often followed by a period of inactivity or reversal in the next session. They mention checking the NinjaTrader version of the CSI tool for further analysis.

00:42

Challenges with MT4/5 timestamps

00:42

The speaker discusses challenges with reading timestamps on MT4 and MT5 trading platforms. They highlight the difficulty in dealing with broker-specific or MetaQuotes timestamps, which often require manual time adjustments. In contrast, NinjaTrader provides real-time timestamps, making it easier to use. The speaker emphasizes the importance of this feature and introduces the topic related to the release of a new version or update.

01:16

Chinese CPI news impact on Aussie and Euro

01:16

The speaker discusses market reactions around the time of the Chinese CPI release, noting that the Australian dollar (Aussie) had been rising but started to decline just before the release, then accelerated afterwards. They highlight a divergence observed in the Euro’s movement, which was falling in contrast to the Aussie, illustrating this with chart analysis. The volatility around the release is examined using a 10-minute chart, emphasizing how fundamental news events often lead to such market fluctuations and may involve information leaks prior to official announcements.

02:28

Volatility candle behavior explained

02:28

The segment explains market volatility and its impact on price movements, highlighting a dramatic shift characterized by volatility candles. It discusses how volatility typically appears in sequences and how price often retraces back within the spread of previous candles before continuing in the original direction. The importance of volume and the volume point of control in understanding these moves is also emphasized.

03:31

Volume resistance and volatility exhaustion

03:31

The segment explains the concept of strong resistance levels and volatility candles indicating exhaustion in price movement. It highlights the importance of volume-based support and resistance as key indicators, showing how after a final volatility candle, the price retreats within the spread, signaling a potential end to the move. Following this, the market enters a prolonged period of sideways congestion with no clear direction, during which traders await a reversal. The discussion also touches on how to identify and date support and resistance levels using volume and price indicators.

04:42

Using Camarilla indicator for support/resistance

04:42

The speaker explains the concept of volume resistance or price-based resistance using the Camarillo indicator, which is part of the full package indicators available in the program. They illustrate how this indicator, combined with candle patterns and volatility indicators, helps identify why price action stops or pauses at certain levels. Specifically, when the price reached a point of volume resistance, it stopped abruptly because it hit the R4 level in the Camarillo protocol. This fourth level is significant as it often signals a potential valid breakout if supported by volume, providing an important clue in understanding price movements and resistance levels.

06:00

Reversal signals and Fibonacci levels

06:00

The speaker discusses a significant reversal in the Euro/Ozzy currency pair that was visible on various timeframes, including faster ones like the CSI and the matrix. This reversal occurred after a strong momentum move and is considered a ‘dead stop’ at an important level. Traders often use Fibonacci levels to establish support and resistance hierarchies, and additional levels like R5 and R6 help validate the strength of the reversal. The hourly chart also shows the price stopping at key resistance levels (R1, R2, R3), reinforcing the importance of assessing multiple timeframes when analyzing such movements.

07:46

Multi-timeframe volatility confirmation

07:46

The discussion focuses on analyzing volatility candles across different time frames, specifically the 10-minute and hourly charts. The volatility indicator triggers in real-time, confirming the presence of volatility candles on slower time frames, which adds validity to anticipating a price reversal. Key resistance levels such as R4 on the 10-minute chart and additional levels on the hourly chart are identified. The momentum is seen to weaken, suggesting a potential reversal setup in the currency pair. Further analysis includes examining volume resistance and filling gaps over a 30-day period to validate these observations.

09:37

Volatility and reversal congestion phases

09:37

The speaker discusses volatility levels observed across multiple timeframes and indicators, suggesting these could signal a potential market reversal. However, they caution that reversals are rarely sharp or immediate; instead, they typically involve a period of congestion. This complexity raises questions about the optimal entry point during such reversals, indicating there is no straightforward answer.

10:15

Upcoming topic: non-time-based charts for reversals

10:15

The speaker explains that future sessions will focus on reversals using non-time-based charts to better assist with trade entries and exits. They analyze a recent price movement lasting about two hours, noting it ended at the volume point of control on the 60-minute chart. The discussion includes examining significant price levels, such as the R1 level around 66,46645, and the recalculation of these levels on different timeframes—daily for shorter periods and weekly for longer ones—resulting in varying levels across charts.

By Anna Coulling – creator of volume price analysis