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The SureFireThing 'Camarilla' Equation

camarilla. cam·a·ril·la. A group of confidential, often scheming advisers; a cabal.[Spanish, diminutive of cámara, room, from Late Latin camera. See chamber.]

Discovered in 1989 by a successful bond trader in the financial markets, SureFireThing's 'Camarilla' equation (original) quite simply expounds the theory that markets, like most time series, have a tendency to revert to the mean. In other words, when markets have a very wide spread between the high and low the day before, they tend to reverse and retreat back towards the previous day's close. This suggests that today's intraday support and resistance can be predicted using yesterday's volatility.Our calculator not only contains SureFireThing's unique Camarilla {b} Equation, but also the original version of SureFireThing's Camarilla Equation, should you already have solid trading experience.Check out the interesting results of using the calculator for stock market day trading as far back as the Great Crash of 1929!

 

Trading with the SureFireThing Camarilla Equation

The SureFireThing Camarilla Equation offers you 8 points of intraday support and resistance, the most important of which are the 'L3' and 'H3' levels. Trading with these levels can be difficult for some less experienced traders, as the system often generates a large number of intraday signals, both with and against the trend, requiring quite a high level of concentration and trading experience. More experienced traders, however, usually find it extremely profitable, and even 20 year veterans are often amazed at how accurately the levels highlight intraday support and resistance.

SureFireThing Camarilla Equation Accuracy

The SureFireThing Camarilla Equation will astound you with its intraday accuracy. As a tool for the more experienced trader, it requires a willingness to 'buck the trend', but also a solid grounding in trading, as one needs good experience in order to know when to exit trades. The SureFireThing Camarilla Equation is ideal for experienced traders - even if you are making money already, the Calculator can help you 'supercharge' your trading and move you on up to the next level. If you sign up for any of our services, you also get access to our unique annotated charts showing how we traded the S&P on any particular day. These charts usually clear up any questions experienced traders may have about using the original equation.

The Camarilla {b} Equation, on the other hand, is only available on this website, and is eminently suitable for both beginners and advanced traders. Charts for the {b} version are also provided to members.

 

Camarilla {b} Equation

SureFireThing's beginner's version of the SureFireThing Camarilla Equation is known as the Camarilla {b} Equation. The {b} stands for 'breakout'. This new version of the equation gives you intraday points to go long or short, together with suggested stop losses and profit targets. It also, like the original equation, suggests the extremes of the day's action beyond which price is unlikely to go, in other words it contains the high and low. SureFireThing's version is unbelievably accurate on indexes, stocks, or any other liquid instrument, and will only involve you in trading WITH the trend. As an advanced trader, you may have days when you just fancy a single, low risk trade before you quit for the day. The Camarilla {b} Equation will offer you just that.
 

Your Roadmap to the Markets

SureFireThing's Camarilla Equation Calculator requires you to enter yesterday's open, high, low and close for the index or liquid instrument you wish to trade.

The Camarilla formula will then generate 8 levels of support and resistance unlike any you will have seen before due to their uncanny accuracy. Most trades will reference only the outer 4 levels, and allow you to catch the breakouts and breakdowns, and most importantly from a point of view of maximising daily profit, the intraday opportunities within the 'chop zone', a place where it is normally dangerous to trade!

More about the Original Equation...

If you are feeling lazy, and just want a single excellent low risk opportunity, switch over to the Camarilla {b} Equation with a single click, and be told:-

  • Go Long point with a suitably sized stop loss position and a sensible profit target
  • Go Short point with once again a stop loss and profit target
  • Two extremes beyond which the market is unlikely to trade.

'Go Long' means that if the market trades up thru this point buy into it, while 'Go Short' means that if the market falls down thru this point, sell short and ride down with it.