The words powerful, unique and game changing are ones that are often over used when applied to trading indicators, but for the MT5 Quantum Camarilla levels indicator, they truly describe this new and exciting indicator completely.
Why? Because the indicator has something to offer every trader, from the systematic to the discretionary and from swing trading to breakout trading. And it’s not an indicator which is simply used for entries. The Camarilla indicator delivers in all areas, from getting in to getting out as well as stop loss placement. All in one single indicator which perhaps explains its unique appeal and power to those traders in the know. Now, it’s all here just waiting for you to discover the power of the Camarilla protocol and apply this unique indicator to your own trading and investing tactics.
So what is the Camarilla protocol, how does it work and what will it do for me? These are all good questions, so let’s get straight down to basics and explain how the indicator works and how you may wish to use it.
Let’s start with the last of these questions first, as this is one of the unique aspects to this indicator. Put simply it is a chameleon of an indicator, and will appeal whether you are a more discretionary type of trader, making and taking decisions yourself, or if you prefer a more systematic or mechanical approach often associated with an EA for example. With the Camarilla levels indicator both approaches can be embraced and accommodated.
The Camarilla protocol has its roots in the open outcry trading pits, where traders considered floor pivots an essential tool. Based on these original ideas and incorporating the Camarilla equation we have developed a unique indicator which delivers clear and precise price based support and resistance levels, which act as targets for profits, triggers for potential reversals, signals for possible breakouts, and finally stop loss placement. So, if you’re a swing or reversal trader, it’s the perfect indicator. Equally if you prefer breakout trading, again it’s the perfect indicator. And all with predetermined and clear levels for any price objectives and profit targets, with stop loss placement covered also.
In other words a complete indicator, and one which is delivered with potential trading setups built in to help you see when key levels are being approached or breached.
The indicator works in a complex way, but the data is presented simply using six levels above the price action and six levels below. Those above are labelled R1 to R6 and those below S1 to S6 with the region between R1 and S1 which we describe as the ‘buffer zone’. These levels are calculated for the different timeframes in different ways.
For daily timeframes and above the levels remain the same for the month, and they are then recalculated at the start of the new month. For intraday timeframes these are recalculated at the start of each new daily session.
Reversal Trading
For reversal trading the key levels to watch are S3 and R3. These are levels which when approached signal potential reversals. So when price is approaching and tests the S3 level below the buffer zone, a reversal to the upside may be on the horizon. In other words a reversal from a bearish trend to a bullish trend in that timeframe. Equally, when price is approaching and testing the R3 level above the buffer zone, then a reversal is possible with the bullish price action reversing to bearish. In both cases the next level then denotes the level for the stop loss. For a reversal off the S3 level higher, the stop loss could be placed at S4 and for a reversal off the R3 level, the stop loss could be placed at the R4 level – assuming these levels fit your risk and money management rules.
The potential price targets are then as follows:
- For an R3 reversal the profit targets are from S1 to S3.
- For an S3 reversal the profit targets are from R1 to R3.
Breakout Trading
For breakout trading the key levels are the R4 above the buffer zone and the S4 below. These are levels at which the price is expected to breakout from the current region and develop a strong move away from the region. So any move to test and break the R4 level is likely to see price continue higher and develop a strong trend. Equally if the S4 level is tested, then price is likely to continue lower and develop a strong trend.
- For an S4 breakout the profit targets are S5 to S6
- For an R4 breakout the profit targets are R5 to R6
Using the Camarilla levels in this way offers a complete solution to two distinct approaches to trading, and in addition, also provide potential target levels along with suggested stop loss positions, but as always these must meet your risk and money management rules.
And it is important to understand the indicator and associated levels can be adopted in two very distinct ways.
First, if you are more suited to mechanical trading where you feel more comfortable with a rule set, then the levels can be considered as your rule set. However, if you are more suited to discretionary trading then the indicator is a perfect complement to other Quantum indicators such as the support and resistance indicator, which again is one based purely on price, and so helps to reinforce levels delivered by the Camarilla protocol. Other indicators such as the Trend Monitor also work perfectly in association with this indicator.
The Camarilla levels indicator works in all timeframes on both standard and custom charts, and in every market, so can be used to trade stocks, commodities, forex or indices on the MT5 platform.
So whether you’re a discretionary trader who prefers swing trading, or a breakout trader who is more systematic, the Camarilla levels indicator can deliver it all.
To help you when using the indicator we have also included some simple messages to guide you as the various levels are approached and tested. These appear as follows :
- If the current open price is between R3 and S3 the indicator displays the words – Possible mean reversal trade is on the horizon
- If the current open price is between S3 and S2 the indicator displays the words – Possible long position now on the horizon
- If the current open price is between R3 and R2 the indicator displays the words – Possible short position now on the horizon
- If the current open price is between R3 and R4 the indicator displays the words – Possible breakout now on the horizon for a long position
- If the current open price is between S3 and S4 the indicator displays the words – Possible breakout now on the horizon for a short position
When there is nothing of interest, the indicator displays the message – Analysing the chart…
You can of course elect to switch these messages off, and they are only included to alert you to possible set ups occurring.
Applying the Indicator
Open your MT5 platform and in the main menu, select View > Navigator to open the Navigator window which appears at the left hand side of your workspace.
In the Navigator window, expand the Indicators tree by clicking the “+” symbol. Find the Quantum tree and expand it by clicking the “+” once again to reveal the full list of Quantum Trading indicators.
To start using the indicator, you can click and drag QuantumLiveCamarillaLevels from the Navigator to a chart or you can also double-click QuantumLiveCamarillaLevels (which will then be applied to the currently selected chart). Doing either one of these will display the Custom Indicator window where you can configure all the various user settings for your Quantum Live Camarilla Levels. These options are grouped and can be accessed by selecting the tabs which will be discussed further in the following sections. Once you are done customizing the indicator’s options, click OK to run the indicator.
Common tab
Here you will find the basic information about the indicator such as its name, description, and version number.
Inputs tab
You can configure the indicator by changing its variables listed in this tab. We explain these in detail shortly and for each configurable input of the Quantum Live Camarilla Levels below.
Colors tab
The Quantum Live Camarilla Levels indicator uses drawing objects instead of plot lines so this tab is empty.
Visualization tab
The indicator’s visibility can be toggled on or off in different contexts with the options in this tab.
Dependencies tab
Please make sure that the “Allow DLL imports…” option is checked/ticked before running the indicator. This is required by all Quantum indicators to properly communicate with its accompanying DLL file. Alternatively, you can set this option globally by selecting in the main menu, Tools > Options > Expert Advisors tab and checking/ticking the “Allow DLL imports” option.
Configuring the Indicator
Let’s go back to the Inputs tab and explore the ways on how to customize the settings of your Quantum Live Camarilla Levels indicator.
Account Email
When running the Quantum Live Camarilla Levels for the first time in your trading account, you need to enter the email you used to register in the Quantum Trading Indicators Enablement System – http://enable.quantumtrading.com/ as part of its verification process. You only need to do this once as the email is stored in the terminal’s global variable cache after it is entered initially. Please make sure that you enter your email correctly and exactly without any extra spaces before and after it. If you made an error, simply fill this field again to update it.
Analyze
Quantum Live Camarilla Levels constantly analyzes price movement and displays it as a message in a box located at the top left corner of the chart. If you prefer to turn off this feature, you can change this field’s value to false to hide the box.
Show Labels
To help you identify which level is which, we have added labels just at the right end of each line. You can hide these labels to by changing this field’s value to false.
Line Thickness
You can increase or decrease the thickness of all the lines by changing this field’s value in the range of 1 to 5. The default thickness is set to 3.
Support Line Style
All support lines are Solid by default but you can switch it to either one of 5 line styles such as Dot and Dash. Simply click the field’s value and choose one from the drop down box that appears. Please note that line styles other than Solid may only be visible only when Line Thickness is set to 1.
Resistance Line Style
All resistance lines are Solid by default but you can switch it to either one of 5 line styles such as Dot and Dash. Simply click the field’s value and choose one from the drop down box that appears. Please note that line styles other than Solid may only be visible only when Line Thickness is set to 1.
Level 1 Line Color
This field defines the color of the Level 1 Camarilla levels: R1 (Resistance) Line and S1 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 1 lines is Red.
Level 2 Line Color
This field defines the color of the Level 2 Camarilla levels: R2 (Resistance) Line and S2 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 2 lines is Orange.
Level 3 Line Color
This field defines the color of the Level 3 Camarilla levels: R3 (Resistance) Line and S3 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 3 lines is Yellow.
Level 4 Line Color
This field defines the color of the Level 4 Camarilla levels: R4 (Resistance) Line and S4 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 4 lines is Green.
Level 5 Line Color
This field defines the color of the Level 5 Camarilla levels: R5 (Resistance) Line and S5 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 5 lines is Blue.
Level 6 Line Color
This field defines the color of the Level 6 Camarilla levels: R6 (Resistance) Line and S6 (Support) Line. By clicking the value of the this field, a drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default color of Level 6 lines is Violet.
Box Background Color
The color of the box where the analysis messages appear can also be customized. Very much like the Level Line Colors, you can change it by clicking the value of this field. A drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default background color is Black.
Box Font Color
The color of the analysis messages itself can be customized as well. Very much like the Level Line Colors, you can change it by clicking the value of this field. A drop down box will appear that allows you to choose a different color in a variety of swatches available in MT5. The default background color is Gold.
Removing the Indicator from the Chart
Open the chart’s Indicator List window by pressing Ctrl+I. You can also right-click the chart and select Indicator List from the context menu.
Select QuantumSupportAndResistance and click the Delete button then click the Close button.
