What is the use of camarilla pivot points?

<p id="isPasted">Camarilla pivot points are a set of technical indicators used by traders to identify potential support and resistance levels in the financial markets. These pivot points are calculated based on a specific formula and can help traders make trading decisions and manage risk. The primary use of camarilla pivot points is to assist traders in determining potential price levels where an asset's price might reverse its direction or experience a significant movement.</p><p>Camarilla pivot points provide traders with several levels of support and resistance beyond the traditional pivot points. These additional levels are known as "L" (L3 and L4) for support and "H" (H3 and H4) for resistance. The basic idea is that if an asset's price is moving upward and reaches a camarilla resistance level (H3 or H4), it might encounter difficulty moving higher and could potentially reverse. Conversely, if the price is declining and reaches a camarilla support level (L3 or L4), it could encounter support and potentially reverse direction.</p><p>Traders use camarilla pivot points in conjunction with other technical analysis tools, such as candlestick patterns, trendlines, and indicators, to make more informed trading decisions. These pivot points can help identify potential entry and exit points for trades, as well as levels where stop-loss and take-profit orders could be placed to manage risk.</p>