A change in market sentiment and the overall trend is defined by the Camarilla Pivot Points. It takes into account the high, low, and closing prices between trading days.

Camarilla, like any other type of pivot point, was traditionally used for equity and futures exchanges. It is now used in the forex, cryptocurrency, and other markets. Camarilla is frequently used to determine potential levels of support and resistance.

Camarilla Pivot Points have four support and resistance levels. Camarilla's calculation is completed using several derivative formulas. The Camarilla for the current day is calculated using the previous day's prices.

Camarilla pivot points are a technical analysis tool used by traders to determine potential support and resistance levels in the financial markets. They were developed by Nick Scott in the late 1980s. Unlike traditional pivot points, which use standard calculations, Camarilla pivot points incorporate a unique formula to calculate eight levels: four resistance levels (R1, R2, R3, R4) and four support levels (S1, S2, S3, S4). These levels are derived from the previous day's high, low, and close prices. Traders use them to predict intraday price movements and to identify potential reversal points. The S3 and R3 levels are particularly important as they often signal key turning points where significant price reactions can occur.