TRADING IN CAMRILLA As u know there are eight levels in camrilla equation We assume it as four resistance & four support levels RULE NO.1 Never trade in a stock which opens between S1- R1..wait for the price to either break R1 or breach S1.. S1-R1 area is known as TREND FORMING ZONE.. Most of the time this zone is a volatile one. RULE NO.2 If a stock opens between R2-R3 & if it breaks R3 level.. Its a bullish trend. RULE NO.3 If a stock opens between S2-S3 & if it breaches S3.. Its a bearish trend.. RULE NO.4 If a stock opens above R3.. Its in the breakout zone RULE NO.5 If a stock opens below S3..its in the break down zone These are the RULES.

Trading pattern - 1 Now lets see the Trading Patterns or Situations which we can adopt with the camrilla levels If market opens negative or a down trend market.. U can see some stocks moving against the direction of the market.. Just watch these stocks.. They may open between the R1-R2 level.. Wait till R2 level, this level is a strong resistance level.. Here u can enter your short for the target of S2 with the stoploss of R3.. This is pattern no.1.. If market opens negative or a down trend market.. U can see some stocks moving against the direction of the market.. Just watch these stocks.. They may open between the R1-R2 level.. Wait till R2 level, this level is a strong resistance level.. Here u can enter your short for the target of S2 with the stoploss of R3.. This is pattern no.1.. Similarly on a bullish day.. Some stocks open between S1- S2 zone & will move down to S2.. Wait for S2 level & initiate your long at S2 for a target of R2.. With stoploss S3 NOTE :: If a stock doesnot get the resistance or support in R2/S2 level.. DONT ENTER THAT TRADE.. Wait for the price to move the next level R3 / S3 and initiate your trade.. THIS IS THE KEY POINT

Trading pattern -2 On a bullish day.. If a stock opens between R2-R3 and moves towards R3.. Wait for the price to break R3 level.. On a bullish day.. If a stock opens between R2-R3 and moves towards R3.. Wait for the price to break R3 level.. When the price breaks R3 level.. It may move faster towards R4 level.. At half way to R4 level the price will come down towards R3.. At this point initiate your long with the stoploss of R1 This will be a definite breakout call. Similarly on a bearish day.. If a stock opens between S2-S3 and moves towards S3.. Allow it to breach S3 and half way to S3- S4 it will retrace to S3.. Initiate ur short here with stoploss of S1.

TRADING PATTERN - 3 If a stock opens between R3-R4.. Its a sure breakout stock.. Before breakout in a big way - These kind of stocks will atleast come once to R3 level.. Enter your long here with stoploss of R2. If a stock opens between R3-R4.. Its a sure breakout stock.. Before breakout in a big way - These kind of stocks will atleast come once to R3 level.. Enter your long here with stoploss of R2. Similarly when a stock opens between S3-S4.. Its a sure breakdown stock.. Let the price retrace to S3.. Initiate ur short with stoploss of S2.

TRADING PATTERN - 4 If a stock opens above R4.. Wait for the prices to retrace towards R4 level and initiate your long with a stoploss of R3 If a stock opens above R4.. Wait for the prices to retrace towards R4 level and initiate your long with a stoploss of R3 If a stock opens below S4.. Wait for the prices to retrace towards S4 level and initiate your short with a stoploss of S3 If a stock opens below S4.. Wait for the prices to retrace towards S4 level and initiate your short with a stoploss of S3 here in this situation.. Book atleast partial at 3.82% of R4/S4 levels.. here in this situation.. Book atleast partial at 3.82% of R4/S4 levels..

TRADING PATTERN – 5 If a stock breaks / breaches R2/ S2 levels.. Initiate your long / short with a target of R3/S3 level with a stoploss of R1/S1. If a stock breaks / breaches R2/ S2 levels.. Initiate your long / short with a target of R3/S3 level with a stoploss of R1/S1. Similarly u can initiate ur long/ short when price break / breach R4/S4 levels with a stoploss of R3/S3.