Forex

Forex stochastics

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The Camarilla Equation in Forex calculates eight levels of intra-day support and resistance according to yesterday’s High, Low, Open and Close. There are 5 of these “L” levels below yesterday’s close, and 5 “H” levels above. They are numbered L1, L2, L3, L4 and L5 etc. The most important levels are L3, H3 levels and L4, H4 levels. The main way to use Camarilla equation in Forex is to wait for price to approach L3. When price does so, traders expect market to reverse at L3 and H3 level and so they open positions against a trend and place protective stop loss outside closest L4 or H4 level.