Darvas Box Revisited

Discussion in 'Trading' started by schizo, Apr 12, 2020.

  1. deaddog

    deaddog

    One big thing Darvas did well was sit on the side lines when the market wasn't trending.
     
    #11     Apr 23, 2020
  2. schizo

    schizo

    Darvas began buying stocks solely on the basis of an increase in volume and price. Sometimes this was successful and sometimes not. He found that on occasions he would buy a stock only to see it immediately begin to fall, and as soon as he sold, prices would advance. Sounds familiar doesn’t it? As Darvas continued to study books and charts, he realized that price movement was not random, in fact once stocks had a defined upward or downward trend, that trend tended to continue for some time.


    Excerpt from Darvas Box Trading
    https://www.darvas.com/wp-content/uploads/2017/09/Darvas-Trading-Booklet.pdf

     
    #12     Apr 23, 2020
  3. schizo

    schizo

    ES 5M (04/23/2020)

    Entries (arrows) based on Darva's Box principles

    upload_2020-4-23_20-38-14.png
     
    #13     Apr 23, 2020
  4. toon

    toon

    For these entries, where would you put the initial stop losses?
     
    #14     Apr 24, 2020
  5. qlai

    qlai

    I don't think his method is applicable to intra-day trading, imho.
     
    #15     Apr 24, 2020
    fan27 likes this.
  6. deaddog

    deaddog

    Especially indexes or futures;

    I believe he stated somewhere that the method wasn't suited to blue chips, part of the reason it worked is momentum stocks attract new traders as they run up.
     
    #16     Apr 24, 2020
    qlai likes this.
  7. schizo

    schizo

    The easiest is to place just below the previous low for long and the previous high for short.

    Now let's see if you can answer where price targets can be set. :)
     
    #17     Apr 24, 2020
  8. schizo

    schizo

    It's a thought experiment. If you came here expecting to learn exactly as it's written in the book, then go read the damn book instead. ;)
     
    #18     Apr 24, 2020
  9. deaddog

    deaddog

    I read the book; that's why I don't think it will apply to short term trading.:D:D
     
    #19     Apr 24, 2020
    qlai likes this.
  10. schizo

    schizo

    Disclaimer: These are hindsight analyses. It might not be so simple in real time. Use it at your own damn discretion.

    ES 5M (04/24/2020)

    Entries (arrows) based on Darva's Box principles

    upload_2020-4-24_17-32-31.png
     
    Last edited: Apr 24, 2020
    #20     Apr 24, 2020