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.
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The Darvas Box Trading Strategy
A Detailed Thread 🔖 + 1 Book Give Away !
Rules For Giveaway :
Follow @JayneshKasliwal
🔄Retweet and
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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.
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Read more About his life : https://t.co/58HCN9ddDG
2/n
@kuttrapali26
TREND FOLLOWING MOMENTUM TRADING
📌Darvas was tracking stocks only making new high
Trading stocks breaking 2-3 year high.
📌But 52-week high is mostly tracked for this theory
📌Emphasized very much on Huge volume Breakouts
A typical Darvas Box Chart :
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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
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📌Whenever the stocks breaks the 52 week Keep them on watchlist
📌Look that The next 3 candles should not break the 52 week high and fall below
📌The high point will be called as CEILING
📌Look for Volume Breakout too or Breakout should be Above Average volume
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📌Floor is basically the a small reversal point or bottom the stock is trying to make.
📌Floor is generally the stoploss of the trade
📌The bigger the range the bigger the stoploss and higher the Risk
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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
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✅Enter When 52 Week High is Broken , and Keep Adding as and when the box formation takes place .
🛑Keep Shifting the stoploss to next Box lows
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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.
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#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
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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
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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
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4.Exit the trade when price goes below the floor price of the recent box.
@AmitabhJha3
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More from JayneshKasliwal
Im sharing A stock Screener+Swing Strategy
Criteria
Screener to Find Swing Stocks.
1. 15% Range of Near 52 week high
2. Avg Volume > 1 lakh
3. Market Cap > 2000 Cr
4. Roe Roce > 20%
5. Eps Increasing Qtr on Qtr
6. Above 50 ema
1/
How to use This Screener
1. Basically we are screening Fundamentally strong stock
2. These are Technically Strong also as stocks are near 52 week high and above 50 ema
3. Below is the list For the screened Stocks.
4. Target should be on RR
@StocksNerd @MarketScientist
2/
When to Enter
1. When 52 week High is Broken
2. Filter Stocks Select Stock With High Relative Strength
Example : #CosmoFilms , #Mastek
3. Keep Sl Below 21 ema
4. Keep Trailing Using 21 ema
5. Enter stocks on high volume breakout
6.Look for Price Range Contraction
3.
Your Most work is done by the screener
The most important task is filtering out manually and that's where your Returns will differ
As we are screening TechnoFunda stocks these can used for momentum investing
Join telegram https://t.co/b4N4oPAto9
@AmitabhJha3 @chartians
Criteria
Screener to Find Swing Stocks.
1. 15% Range of Near 52 week high
2. Avg Volume > 1 lakh
3. Market Cap > 2000 Cr
4. Roe Roce > 20%
5. Eps Increasing Qtr on Qtr
6. Above 50 ema
1/
How to use This Screener
1. Basically we are screening Fundamentally strong stock
2. These are Technically Strong also as stocks are near 52 week high and above 50 ema
3. Below is the list For the screened Stocks.
4. Target should be on RR
@StocksNerd @MarketScientist
2/
When to Enter
1. When 52 week High is Broken
2. Filter Stocks Select Stock With High Relative Strength
Example : #CosmoFilms , #Mastek
3. Keep Sl Below 21 ema
4. Keep Trailing Using 21 ema
5. Enter stocks on high volume breakout
6.Look for Price Range Contraction
3.
Your Most work is done by the screener
The most important task is filtering out manually and that's where your Returns will differ
As we are screening TechnoFunda stocks these can used for momentum investing
Join telegram https://t.co/b4N4oPAto9
@AmitabhJha3 @chartians
Detailed Study of Stocks that became 5X in past 2 Years
A Mega Thread🧵
Concepts :
Relative Strength
Stage Analysis
Retweet and Comment If you want to attend a live session on the same !
We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks
https://t.co/jESOUM32b5
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All stocks had few things in common :
Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr
Examples : OLECTRA , PGEL
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So What is Relative Strength ?
Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n
A Mega Thread🧵
Concepts :
Relative Strength
Stage Analysis
Retweet and Comment If you want to attend a live session on the same !
We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks
https://t.co/jESOUM32b5
1/n
All stocks had few things in common :
Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr
Examples : OLECTRA , PGEL
2/n
So What is Relative Strength ?
Relative strength is a strategy used in momentum investing and in identifying value stocks.
It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
3/n
How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n
More from Screeners
On the occasion of youtube 20k and Twitter 70k members
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you
A small tribute/gift to members
Screeners
technical screeners - intraday and positional both
before proceeding - i have helped you , can i ask you so that it can help someone else too
thank you
positional one
run - find #stock - draw chart - find levels
1- Stocks closing daily 2% up from 5 days
https://t.co/gTZrYY3Nht
2- Weekly breakout
https://t.co/1f4ahEolYB
3- Breakouts in short term
https://t.co/BI4h0CdgO2
4- Bullish from last 5
intraday screeners
5- 15 minute Stock Breakouts
https://t.co/9eAo82iuNv
6- Intraday Buying seen in the past 15 minutes
https://t.co/XqAJKhLB5G
7- Stocks trading near day's high on 5 min chart with volume BO intraday
https://t.co/flHmm6QXmo
Thank you
Time for a new thread on the possibilities I am looking for.
Do read it completely to understand the stance and the plan.
1. The moving average structure - Many traders just look at the 200 ma test or closing above/below it regardless of its slope. Let's look at all the interactions with 200 ma where price met it for the first time after the trend change but with 200 ma slope against it
One can clearly sense that currently it is one of those scenarios only. I understand that I might get trolled for this, but an unbiased mind suggests that odds are highly against the bulls for making fresh investments.
But markets are good at giving surprises. What should be our stance if price kept on rising? Let's understand that through charts. The concept is still the same. Divergent 200 ma and price move results in 200 ma test atleast once which gives good investment opportunities.
2. Zig-Zag bear market- There are two types of fall in a bear market, the first one is vertical fall which usually ends with ending diagonals (falling wedges) and the second one is zig zag one which usually ends with parabolic down moves.
Do read it completely to understand the stance and the plan.
This thread will present a highly probable scenario of markets for the upcoming months. Will update the scenario too if there is a significant change in view in between.
— Aakash Gangwar (@akashgngwr823) May 15, 2022
1/n https://t.co/jfWOyEgZyd
1. The moving average structure - Many traders just look at the 200 ma test or closing above/below it regardless of its slope. Let's look at all the interactions with 200 ma where price met it for the first time after the trend change but with 200 ma slope against it
One can clearly sense that currently it is one of those scenarios only. I understand that I might get trolled for this, but an unbiased mind suggests that odds are highly against the bulls for making fresh investments.
But markets are good at giving surprises. What should be our stance if price kept on rising? Let's understand that through charts. The concept is still the same. Divergent 200 ma and price move results in 200 ma test atleast once which gives good investment opportunities.
2. Zig-Zag bear market- There are two types of fall in a bear market, the first one is vertical fall which usually ends with ending diagonals (falling wedges) and the second one is zig zag one which usually ends with parabolic down moves.
