Daytrading With Camarilla Equations and Levels


When people begin day trading for the very first time in their lives, they are bound to lose money everyday. This stage actually acts as a filtration – some frown and leave the arena while the rest try to survive in this battle.

There is a stage when people begin that hunt for the so-called “holy grail”. They notice that everyday, the market will move certain levels. They will also come to the conclusion that there are certain “nefarious elements” within the market who control the movement of the prices. The intention of this section is not to dispute those aspects.

When I was first introduced to the Camarilla Equation, I was spell bound. Using yesterday’s high, low and closing price, we could determine the movement of the market (for the next day) – this is the entire idea behind the so-called equations. Once I came across these equations, I decided to check it out by myself the following day. I noticed that the scrips would follow the equations beautifully on certain days. On most of the other days, it would simply hover around these points and fall down drastically. Search around and you will come across hundreds of blog posts and forum threads highlighting the usefulness of the equation. But, is it worth it? I decided to give it a test run.

I did something simple – I decided to obtain the information from the horses mouth – aka I subscribed for one week trial offer from Surefirething. Why did I do so? There are various “variants” of the equations floating around. According to the official sources, we had to take into account the high, low, close as well as the opening price of the scrip. However, the versions available on the internet took only the previous day’s high, low and close prices. I wanted to know which one among these were the real deal. I thought the equations available freely on the inter-webs were not working as envisaged because we vomited the opening price while calculating the levels. The only way to find it out was to spend $99 for the trial service. And I did the same.

Now, I was fairly disappointed once I was admitted into the “members area” of the website. I started experimenting with the paid service to find out which one of the equations available for free were accurate. Of the four variants, only one gave the most accurate values. The rest of the versions of the equations displayed approximate values only. Secondly, the high / low breakout targets given by the website and the equations (which you will come across) are different. These were the only information which I was able to learn via the trial offer. No, I was not able to deduct the equations (for the high / low breakout targets) myself.

One thing is for certain – I wouldn’t be touching these equations with a ten foot pole for day trading purposes. Day trading is an art, something which cannot be expressed with a set of equations. There exists a unique relationship in between the price and the time. And this friendship in between the two keeps on changing as the day progresses.

I have come across several blog posts stating that banks and large financial institutions use these equations to day trade and make millions. The entire financial architecture of the globe would fail if it were true!

I hope this post is informative for those who are currently day trading with these equations. Lastly, I do not intent to ridicule their services. Feel free to trade with it and you will realize the truth for yourselves!

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5 Responses to Daytrading With Camarilla Equations and Levels

  1. Pingback: Interesting and Insightful Daytrading Tips « Ardours of a Technology Enthusiast – Praveen Pious Francis

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  3. Pingback: Camarilla Equation For Daytrading (Revisited) « Ardours of a Technology Enthusiast – Praveen Pious Francis

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  5. Robin says:

    You should check out the work by Mark Fisher – The logical trader and also a book called Pivot Book.

    You can use it in tandem with camarilla levels.

    Good luck!

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