Camarilla pivots in gold trading

Camarilla pivots are a set of support and resistance levels calculated from the previous day’s high, low and close. The key levels use the range multiplied by 1.1 and divided into fractions: H3 = close + range × 1.1 ÷ 4, H4 = close + range × 1.1 ÷ 2, with L3 and L4 the mirror below. They sit closer to the prior close than classic floor pivots.

How it applies to gold trading

The common playbook is simple. In a range day, price reaching H3 is a candidate short back toward the close and L3 a candidate long. A decisive break through H4 or L4 suggests a trend day and a breakout trade in that direction. Because the levels depend on yesterday’s range, they tighten after quiet days and widen after volatile ones.

For gold, the choice of daily close matters: platforms differ in whether the day ends at 5 p.m. New York time or midnight server time, which changes the levels.

Worked example

Example (hypothetical numbers): yesterday’s high 4,050, low 3,990, close 4,020. Range 60 × 1.1 = 66. H4 = 4,020 + 33 = 4,053; H3 = 4,020 + 16.5 = 4,036.50; L3 = 4,003.50; L4 = 3,987. Gold tags 4,036 in London and fades to 4,021; later in New York it breaks 4,053 and runs.

A common mistake

Fading H3 on a news day. Scheduled US data can blow through every level; check the calendar first.

See also: Pivot points, Previous day high and low, Support and resistance, Breakout.

Frequently asked questions