# Camarilla Pivot Point Indicator | Indicator Series

The Camarilla pivot point indicator is an indicator that predicts 4 resistance (ceiling) and 4 support (floor) levels, and a pivot point for market price movements.

This indicator was developed in 1989 by Nick Scott, a bond trader. (Try out indicators on Tradingview.com)

The Camarilla pivot point is considered a leading indicator, using the prior day’s high, low, and closing price in its formulas.

A leading indicator can point to what can happen in the future, but the results may not always be correct and should be used with other technical analysis tools to confirm the observation.

What makes the Camarilla formula different from other pivot point indicators is that instead of using the pivot point value to calculate the resistance and support levels, it adds the prior day’s closing price to these equations.

Also, the Camarilla equation calls for 4 resistance levels and 4 support levels instead of 2 or 3 resistance levels and 2 or 3 support levels.

Add the pivot point line and that adds up to 9 levels, S4, S3, S2, S1, PP, R1, R2, R3, and R4.  S4 and R4 are the outer support and resistance levels with all other levels plotted in between S4 and R4

#### Trends

When the pivot point price has broken over the pivot point level (PP), the market is in a bullish state.  Conversely, if the pivot point price has dropped below the PP level, the market is considered to be in a bearish state.

#### Entry And Exit Points

The support and resistance levels can signify the best times for exits or stop losses and entries or limit orders.

A stop loss can be initiated when the price approaches or crosses one of the support levels.  The same is true that a limit order can be initiated when the price nears or crosses one of the resistance levels.

#### Other Types Of Pivot Point Indicators

• Standard pivot points
• Woodie’s pivot points
• Fibonacci pivot points
• Denmark pivot points

All use different formulas and calculations to ascertain support and resistance levels.