In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business.
Darvas turned a $36,000 investment into more than $2.25 million in a three-year period.
1/n
The Darvas Box Trading Strategy
A Detailed Thread ๐ + 1 Book Give Away !
Rules For Giveaway :
Follow @JayneshKasliwal
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โฅ๏ธ Like this Tweet
One Lucky Winner will be Selected
#StockMarket #darvasbox
In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business.
Darvas turned a $36,000 investment into more than $2.25 million in a three-year period.
1/n
Read more About his life : https://t.co/58HCN9ddDG
2/n
@kuttrapali26
TREND FOLLOWING MOMENTUM TRADING
๐Darvas was tracking stocks only making new high
Trading stocks breaking 2-3 year high.
๐But 52-week high is mostly tracked for this theory
๐Emphasized very much on Huge volume Breakouts
A typical Darvas Box Chart :
3/n
Stock Price Should be within 15 to 20 % of Highs
Overall trend of the stocks should be up and greater than 200 ema
Preferably 100% up then the 52 week low
Look for Industry Leaders , with High Growth
4/n
๐Whenever the stocks breaks the 52 week Keep them on watchlist
๐Look that The next 3 candles should not break the 52 week high and fall below
๐The high point will be called as CEILING
๐Look for Volume Breakout too or Breakout should be Above Average volume
5/n
๐Floor is basically the a small reversal point or bottom the stock is trying to make.
๐Floor is generally the stoploss of the trade
๐The bigger the range the bigger the stoploss and higher the Risk
6/n
After 52 week High , mark the Top: Ceiling
After a small Reversal mark the Bottom : Floor
Enter As soon as the 52 week high breaks with stoploss
7/n
โ Enter When 52 Week High is Broken , and Keep Adding as and when the box formation takes place .
๐Keep Shifting the stoploss to next Box lows
8/n
Entry on failed Breakout but Stops Dont hit as Stoploss is below the Box
PIC 2 : You should only draw boxes when the next 3 candles of 52 week high dont break the high.
9/n
#kotakbank : Not valid Box , as stock is not breaking the 52 week high only the range breakout is happening
Also Restrict yourself to growth stocks that is midcaps and smallcaps
10/n
There isnt any fixed % of difference from ceiling to floor mentioned any where
There also isnt any time frame mentioned how much the sideways trend or box formatiom will take place
There could be any combinations of boxes and there sizes
11/n
1. Buy if price closes above Ceiling and put a stop-loss below Floor price.
2. Add Small Qtys as breakout happens and one can pyramid in winners and further breakouts
3. Ride the winner till you get Stopped
4. Reenter if stock regains 52 wk high
13/
4.Exit the trade when price goes below the floor price of the recent box.
@AmitabhJha3
14/n
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๐ธ It scans stocks by using technical indicators like RSI, MACD, divergences, etc.
๐ธ It also uses fundamental tools like Book Value, EPS,PE etc
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Go to https://t.co/JJEJBg3Cd8 & click on ๐๐ณ๐ฆ๐ข๐ต๐ฆ ๐๐ค๐ข๐ฏ under ๐๐ค๐ณ๐ฆ๐ฆ๐ฏ๐ฆ๐ณ๐ด.
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Click on green โ+โ icon to add conditions.
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https://t.co/HcIXT7V002
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How to change Settings:
๐ธ There are 8 columns you can basically select any financial you want
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๐ฃ๐ฎ๐ฟ๐ ๐ฎ
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๐ธ Link:
https://t.co/HcIXT7V002
๐ธ Click on the above link -> Add to Favourites -> Add on Chart from favourites and start using it !
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You can add financials from many fundamental criteria's like
๐ธ Cashflows
๐ธ Income Statements
๐ธ Balance sheets
๐ธ PE,PB ratios
๐ธ Marketcapitlization
๐ธ Statistics
3/20
How to change Settings:
๐ธ There are 8 columns you can basically select any financial you want
๐ธ You can select quarterly or Yearly values and can also write
๐ธ The names of the financiaLS Example : EPS Qtr3
๐ธ You can Change colours , font sizeย
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