Camarilla levels are some of the most powerful and precise intraday reference points used by professional traders. Popularized by Pivot Boss methods, these levels help traders forecast reversals, identify trend continuation zones, and build structured trading plans. While they may seem complicated at first glance, Camarilla levels are easy to apply once you understand the logic behind them. In this guide, AZBroker explains what the Pivot Boss Camarilla levels are, how they’re calculated, and how beginners can use them to improve trading precision.
What Are Camarilla Pivot Levels?
Camarilla levels are a type of pivot point calculation that produces eight key intraday levels four support levels (L1–L4) and four resistance levels (H1–H4). They were created by trader Nick Scott to capture the tendency of price to revert toward the mean while still allowing for powerful breakout opportunities.
These levels work extremely well in markets that experience cyclical intraday volatility, such as forex, indices, and commodities.
The Key Levels Include:
- H1 & H2: Shallow resistance/retracement levels
- H3: Major reversal level
- H4: Breakout continuation level
- L1 & L2: Shallow support/retracement levels
- L3: Major reversal level
- L4: Breakdown continuation level
The strength of Camarilla pivots comes from their ability to identify clear reversal and breakout zones using predictable behavior.
Why Traders Use Camarilla Levels
Camarilla levels are popular because they help traders:
- Identify high-probability reversal areas
- Predict breakout or breakdown zones
- Create structured intraday trading plans
- Avoid emotional trading decisions
- Combine price structure with volatility
Unlike standard pivot points, Camarilla levels tend to hug price action more closely, creating more frequent and accurate reaction areas.
How the Pivot Boss Method Uses Camarilla Levels
Pivot Boss traders follow a structured approach using two major concepts:
1. Reversal Trades at H3/L3
H3 and L3 act as the primary reversal levels.
- At H3, price often rejects and moves lower.
- At L3, price often bounces and moves higher.
These zones align beautifully with price action trading, especially when supported by:
- Rejection candles
- Engulfing patterns
- RSI divergence
- Momentum indicator weakening
2. Breakout Trades at H4/L4
H4 and L4 are breakout continuation levels.
- A break above H4 signals strong bullish momentum
- A break below L4 signals strong bearish continuation
Camarilla pivots require context not mechanical blind entries.
Final Thoughts
Pivot Boss Camarilla levels give traders a structured, reliable way to anticipate reversals and breakout moves with precision. When combined with price action, moving averages, MACD, RSI, and strong momentum confirmation and supported by expert insights from AZBroker Camarilla levels become a powerful toolkit for intraday and swing traders alike.
Understanding the Pivot Boss Camarilla Levels
Camarilla levels are some of the most powerful and precise intraday reference points used by professional traders. Popularized by Pivot Boss methods, these levels help traders forecast reversals, identify trend continuation zones, and build structured trading plans. While they may seem complicated at first glance, Camarilla levels are easy to apply once you understand the logic behind them. In this guide, AZBroker explains what the Pivot Boss Camarilla levels are, how they’re calculated, and how beginners can use them to improve trading precision.
What Are Camarilla Pivot Levels?
Camarilla levels are a type of pivot point calculation that produces eight key intraday levels four support levels (L1–L4) and four resistance levels (H1–H4). They were created by trader Nick Scott to capture the tendency of price to revert toward the mean while still allowing for powerful breakout opportunities.
These levels work extremely well in markets that experience cyclical intraday volatility, such as forex, indices, and commodities.
The Key Levels Include:
- H1 & H2: Shallow resistance/retracement levels
- H3: Major reversal level
- H4: Breakout continuation level
- L1 & L2: Shallow support/retracement levels
- L3: Major reversal level
- L4: Breakdown continuation level
The strength of Camarilla pivots comes from their ability to identify clear reversal and breakout zones using predictable behavior.
Why Traders Use Camarilla Levels
Camarilla levels are popular because they help traders:
- Identify high-probability reversal areas
- Predict breakout or breakdown zones
- Create structured intraday trading plans
- Avoid emotional trading decisions
- Combine price structure with volatility
Unlike standard pivot points, Camarilla levels tend to hug price action more closely, creating more frequent and accurate reaction areas.
How the Pivot Boss Method Uses Camarilla Levels
Pivot Boss traders follow a structured approach using two major concepts:
1. Reversal Trades at H3/L3
H3 and L3 act as the primary reversal levels.
- At H3, price often rejects and moves lower.
- At L3, price often bounces and moves higher.
These zones align beautifully with price action trading, especially when supported by:
- Rejection candles
- Engulfing patterns
- RSI divergence
- Momentum indicator weakening
2. Breakout Trades at H4/L4
H4 and L4 are breakout continuation levels.
- A break above H4 signals strong bullish momentum
- A break below L4 signals strong bearish continuation
To confirm breakout trades, traders often use:
- MACD in trading to confirm rising momentum
- Moving average strategy to show trend direction
- Increasing volume or volatility bursts
This helps filter out false breakouts.
How to Trade Using Camarilla Levels
Here are beginner-friendly techniques using the Pivot Boss framework.
1. Reversal Trading at H3 and L3
This is the most common approach.
Example (Short Trade):
- Price approaches H3
- RSI becomes overbought
- MACD momentum weakens
- A bearish price action pattern forms
→ Enter short, target the midpoint, and use structure-based stops.
Example (Long Trade):
- Price tests L3
- RSI shows oversold conditions
- A bullish engulfing candle appears
→ Enter long, targeting the midpoint or H1/H2 levels.
2. Breakout Trading at H4 and L4
When momentum is strong, breakouts from H4 or L4 create trend days.
A valid H4 breakout includes:
- Strong bullish candle close beyond H4
- MACD histogram rising
- Moving average aligned in the trend direction
A valid L4 breakdown includes:
- Strong bearish candle
- RSI below 50
- Increasing bearish momentum
This structure provides high-probability trend continuation setups.
3. Combining Camarilla Levels With Price Action
Camarilla levels become even more powerful when paired with:
- Support and resistance
- Trendlines
- Candlestick signals
- Volume shifts
This confluence reduces noise and improves reliability.
Read more:
A Complete Guide to the Demand Index
How to Trade Institutional Levels and Round Numbers
Common Mistakes to Avoid
- Trading every touch of the Camarilla levels
- Ignoring trend direction
- Entering breakouts without confirmation
- Not checking market session volatility
Camarilla pivots require context not mechanical blind entries.
Final Thoughts
Pivot Boss Camarilla levels give traders a structured, reliable way to anticipate reversals and breakout moves with precision. When combined with price action, moving averages, MACD, RSI, and strong momentum confirmation and supported by expert insights from AZBroker Camarilla levels become a powerful toolkit for intraday and swing traders alike.