Camarilla Equation

Camarilla Equation
It is the popular secret dealing equation. Its invention is attributed to the trader named as Nick Scott.The main principle behind this is the knowledge that tends the market trends, with time to change to the mean. This equation takes four different variables from the earlier trading day known as market closing, opening, low and high. Depending on the different variables, this equationgives rise toeight different levels of prices. The lowermost four are known as the support levels which are considered from L one to L four. On the contrary, the maximum four are known as the resistance levels which are consideredfrom H one to H four. These represent the points at which an opposite towards mean will take place on the offered trading day. The name is derived from the word “Camarilla” which signifies a collection of secret advisors, generally involved in intrigues.