Hey traders! Today, we're diving into a handy tool for your trading arsenal—the Cam_H2_H5_Historical indicator. This modified version of the classic Camarilla indicator can help you identify key price levels based on previous market sessions.
So, what’s the deal with the Camarilla Equation? Originally, it featured 8 levels, but in later versions, it expanded to 10. These levels are calculated using the open, close, high, and low prices from the previous day’s trading session. The beauty of this indicator is that it categorizes these levels into two main groups:
- L Levels: These are drawn down from yesterday’s closing price (the letter L stands for “Low”) and are numbered 1 through 5.
- H Levels: Conversely, these are drawn up from yesterday’s closing price (the letter H stands for “High”) and are also numbered 1 to 5.
It’s important to note that levels L1 and L2 are typically less significant, so you might want to focus your trading strategies on levels L5 and H5 instead, as they often provide more reliable insights.
This indicator was first brought to life in MQL4 and made its debut on the Code Base at mql4.com back on July 24, 2008. It’s been a go-to for many traders since then!
Fig.1 The Cam_H2_H5_Historical indicator
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