Wed05222013

Last update12:00:00 AM

In his article in this issue, “Camarilla Points,” author Slawomir Bobrowski describes camarilla points as being similar to pivot points and explains that camarilla points are eight levels around which market prices fluctuate — four levels of resistance and four levels of support; fifth levels of resistance & support have been added to handle breakouts. Bobrowski mentions that camarilla points are best suited for range trading and goes on to outline several different trading methods, with examples, based on the application of these levels.

We’ll be offering a camarilla points indicator for download in our VT client forums at http://forum.vtsystems.com along with hundreds of other precoded and free indicators and trading systems. The VT Trader instructions for creating the aforementioned indicator are as follows:

Camarilla Points

1. VT Trader’s Ribbon → Technical Analysis menu → Indicators group → Indicators Builder → [New] button
2. In the General tab, type the following text into each corresponding text box:
```Name: TASC - 03/2013 - Camarilla Points - 24Hr Cycle
Function Name Alias: tasc_CamPoints
TASC - 03/2013 -Camarilla Points - 24Hr Cycle (Calculation Time: %CalculationHour%:%CalculationMinute%)
R1 = %Resistance1%, R2 = %Resistance2%, R3 = %Resistance3%, R4 = %Resistance4%, R5 = %Resistance5%
S1 = %Support1%, S2 = %Support2%, S3 = %Support3%, S4 = %Support4%, S5 = %Support5%
Placement: Price Frame
Data Inspection Alias: Camarilla Points - 24-Hr Cycle```
3. In the Input Variable(s) tab, create the following variables:
```[New] button...
Name: CalculationHour
Display Name: Calculation Hour
Type: integer
Default: 17
[New] button...
Name: CalculationMinute
Display Name: Calculation Minute
Type: integer
Default: 0```
4. In the Output Variable(s) tab, create the following variables:
```[New] button...
Var Name: Resistance5
Name: (R5)
Line Color: light blue
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Resistance4
Name: (R4)
Line Color: light blue
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Resistance3
Name: (R5)
Line Color: blue
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Resistance2
Name: (R5)
Line Color: dark blue
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Resistance1
Name: (R5)
Line Color: dark blue
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Support1
Name: (S1)
Line Color: dark red
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Support2
Name: (S2)
Line Color: dark red
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Support3
Name: (S3)
Line Color: red
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Support4
Name: (S4)
Line Color: light red
Line Width: 1
Line Type: solid line
[New] button...
Var Name: Support5
Name: (S5)
Line Color: light red
Line Width: 1
Line Type: solid line```
5. In the Formula tab, copy and paste the following formula:
```{Provided By: Visual Trading Systems, LLC}
{Description: TASC, March 2013 - "Trading In Multiple Time Frames, Camarilla Points" by Slawomir Bobrowski}
{File: tasc_CamPoints.vtscr - Version 1.0}
_Hour:= Hour();
_Minute:= Minute();
CalculationTime:= Cross((_Hour=CalculationHour AND _Minute>=CalculationMinute),0.5);
LookBackPeriods:= valuewhen(1, Cross(0.5,CalculateLookBackperiods), ref(CalculateLookBackPeriods,-1)+1);
_H:= valuewhen(1,CalculationTime=1,HHV(H,LookBackPeriods));
_L:= valuewhen(1,CalculationTime=1,LLV(L,LookBackPeriods));
_C:= valuewhen(1,CalculationTime=1,C);
_Range:= _H-_L;
Resistance1:= _C + _Range * (1.1)/12;
Resistance2:= _C + _Range * (1.1)/6;
Resistance3:= _C + _Range * (1.1)/4;
Resistance4:= _C + _Range * (1.1)/2;
Resistance5:= (_H/_L) * _C;
Support1:= _C - _Range * (1.1)/12;
Support2:= _C - _Range * (1.1)/6;
Support3:= _C - _Range * (1.1)/4;
Support4:= _C - _Range * (1.1)/2;
Support5:= (_C-(Resistance5-_C));```
6. Click the “Save” icon in the toolbar to finish building the camarilla points indicator.

To attach the indicator to a chart, click the right mouse button within the chart window and then select “Add Indicator” → “TASC - 03/2013 - Camarilla Points - 24Hr Cycle” from the indicator list.

A sample chart is shown in Figure 11.

FIGURE 11: VT TRADER. Here, the camarilla points indicator is shown on a EUR/USD one-hour candlestick chart.

Risk disclaimer: Past performance is not indicative of future results. Forex trading involves a substantial risk of loss and may not be suitable for all investors.