OPEN-SOURCE SCRIPT
Amol Kadam
Camarilla R3/S3 Rejection Trading Setup
Overview
This intraday trading strategy is based on Camarilla Pivot Levels, specifically H3 (R3) and L3 (S3), combined with the market structure formed during the first part of the trading session.
The setup aims to identify high-probability reversal trades after the initial market range is established, using Camarilla levels as key support and resistance zones.
⸻
Market Preparation
Step 1: Define the Morning Range
Mark the High and Low formed between:
09:15 AM – 11:30 AM (IST)
This range represents the market’s initial balance area and is used as a filter for valid Camarilla levels.
Step 2: Calculate Camarilla Levels
Using the previous trading day’s:
* High
* Low
* Close
Calculate:
* H3 (R3) – Potential resistance zone
* L3 (S3) – Potential support zone
⸻
Trade Qualification
A trade is considered valid only when:
* H3 (R3) lies within the 09:15–11:30 range, or
* L3 (S3) lies within the 09:15–11:30 range.
If the Camarilla level is outside the morning range, no trade is taken.
⸻
Long Trade Setup
Conditions
1. Time is after 11:30 AM.
2. L3 (S3) is within the morning range.
3. Price touches or trades below S3.
4. The candle closes back above S3, indicating rejection of support.
Entry
Enter a Buy trade at the close of the rejection candle.
Stop Loss
0.5% below the entry price.
Target
0.5% above the entry price.
⸻
Short Trade Setup
Conditions
1. Time is after 11:30 AM.
2. H3 (R3) is within the morning range.
3. Price touches or trades above R3.
4. The candle closes back below R3, indicating rejection of resistance.
Entry
Enter a Sell trade at the close of the rejection candle.
Stop Loss
0.5% above the entry price.
Target
0.5% below the entry price.
⸻
Trade Management Rules
* Only one trade can remain active at a time.
* No new signals are generated while a trade is active.
* A new trade is allowed only after the previous trade reaches either:
* Target, or
* Stop Loss.
* Entry, Stop Loss, and Target levels are displayed on the chart for active trades.
⸻
Key Advantages
* Uses objective Camarilla support and resistance levels.
* Avoids trading during the market’s opening volatility.
* Filters trades using the morning range.
* Provides predefined risk and reward.
* Eliminates overlapping positions through single-trade management.
⸻
Suitable Instruments
This setup is best suited for:
* NIFTY 50
* BANKNIFTY
* Highly liquid index derivatives
* Liquid large-cap stocks
Recommended chart timeframes:
* 3 Minute
* 5 Minute
* 15 Minute
⸻
Strategy Objective
The goal of the setup is to capture intraday reversals from important Camarilla levels after the market establishes direction and liquidity during the first half of the trading session.
Overview
This intraday trading strategy is based on Camarilla Pivot Levels, specifically H3 (R3) and L3 (S3), combined with the market structure formed during the first part of the trading session.
The setup aims to identify high-probability reversal trades after the initial market range is established, using Camarilla levels as key support and resistance zones.
⸻
Market Preparation
Step 1: Define the Morning Range
Mark the High and Low formed between:
09:15 AM – 11:30 AM (IST)
This range represents the market’s initial balance area and is used as a filter for valid Camarilla levels.
Step 2: Calculate Camarilla Levels
Using the previous trading day’s:
* High
* Low
* Close
Calculate:
* H3 (R3) – Potential resistance zone
* L3 (S3) – Potential support zone
⸻
Trade Qualification
A trade is considered valid only when:
* H3 (R3) lies within the 09:15–11:30 range, or
* L3 (S3) lies within the 09:15–11:30 range.
If the Camarilla level is outside the morning range, no trade is taken.
⸻
Long Trade Setup
Conditions
1. Time is after 11:30 AM.
2. L3 (S3) is within the morning range.
3. Price touches or trades below S3.
4. The candle closes back above S3, indicating rejection of support.
Entry
Enter a Buy trade at the close of the rejection candle.
Stop Loss
0.5% below the entry price.
Target
0.5% above the entry price.
⸻
Short Trade Setup
Conditions
1. Time is after 11:30 AM.
2. H3 (R3) is within the morning range.
3. Price touches or trades above R3.
4. The candle closes back below R3, indicating rejection of resistance.
Entry
Enter a Sell trade at the close of the rejection candle.
Stop Loss
0.5% above the entry price.
Target
0.5% below the entry price.
⸻
Trade Management Rules
* Only one trade can remain active at a time.
* No new signals are generated while a trade is active.
* A new trade is allowed only after the previous trade reaches either:
* Target, or
* Stop Loss.
* Entry, Stop Loss, and Target levels are displayed on the chart for active trades.
⸻
Key Advantages
* Uses objective Camarilla support and resistance levels.
* Avoids trading during the market’s opening volatility.
* Filters trades using the morning range.
* Provides predefined risk and reward.
* Eliminates overlapping positions through single-trade management.
⸻
Suitable Instruments
This setup is best suited for:
* NIFTY 50
* BANKNIFTY
* Highly liquid index derivatives
* Liquid large-cap stocks
Recommended chart timeframes:
* 3 Minute
* 5 Minute
* 15 Minute
⸻
Strategy Objective
The goal of the setup is to capture intraday reversals from important Camarilla levels after the market establishes direction and liquidity during the first half of the trading session.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.