In “Camarilla Points” in this issue, author Slawomir Bobrowski presents an interesting concept applied to the end-of-day trading environment.
Once I had his charts recreated in Excel, I found it very instructive to watch the various levels adjust as I scrolled the camarilla bar across the chart (Figure 16). You can then change the trading day length up or down and scroll through the chart again.
FIGURE 16: MICROSOFT EXCEL. This sample camarilla chart shows the range days lookback area used to establish the base high-low-close values and the trading days area with key camarilla levels displayed.
In his article, Bobrowski cautions the reader to do his or her own statistical testing as to how to go about selecting camarilla dates and trading day lengths. Small differences in either setting can have a dramatic impact on the camarilla levels. As Bobrowski reminds us, it is just good trading hygiene to always have appropriate protective stops in place.
The spreadsheet file for this Traders’ Tip can be downloaded as follows:
- Right-click on the Excel file link here, then
- Select “Save target as” to place a copy of the spreadsheet file on your hard drive.