HOW-TO: Navigate the Market with the Darvas Box Strategy
🚀 Introduction to the Darvas Box Strategy
Nicolas Darvas, a dancer by trade, crafted a unique and potent trading strategy during his global tours, famously turning $36,000 into $2 million within an 18-month timeframe during the 1950s. His approach, detailed in his book "How I Made $2,000,000 in the Stock Market," revolves around the concept of the "Darvas Box" - a method that encapsulates price movements and leverages breakout patterns, all while keeping a keen eye on volume.
Darvas sought stocks carving all-time highs and observed their trading ranges, creating a "box" from the consolidation periods. He would buy on the breakout above the box and implement a stop-loss below it, ensuring a meticulous risk management approach.
🛠️ Harnessing the Darvas Box Strategy with Our Script
Our Darvas Box strategy script is designed to encapsulate the essence of Darvas’s strategy, providing traders with a tool to not only identify and visualize Darvas Boxes but also to backtest the strategy across various assets and timeframes on the TradingView platform.
🗝️ Key Features:
Backtesting Capability : Evaluate the Darvas Box strategy’s historical performance on your chosen asset.
Versatile Entry Filters : Customize your entry criteria, ensuring alignment with your risk tolerance and trading style.
Volume Analysis : Integrate volume filters to validate breakout movements, adhering to Darvas’s emphasis on robust volume to confirm breakouts.
Visual Aids : The script visually plots Darvas Boxes and potential entry/exit points, aiding in swift analysis and decision-making.
📊 Utilizing the Script for Informed Trading Decisions
The script is not a 'get-rich-quick' tool but a sophisticated aid to navigate through the markets using a time-tested strategy. It allows you to:
Identify and visualize Darvas Boxes on any chart.
Backtest the strategy to understand its historical performance.
Customize settings to align with your trading preferences.
Receive alerts for potential entry and exit points based on your criteria.
📘 Dive Deep with Upcoming Publications
In the subsequent publications, we'll delve deeper into the various configuration sections of the script, exploring settings, filters, and optimizations to ensure you can tailor the strategy to your unique trading approach.
🔍 Explore, Analyze, and Trade Wisely
While the Darvas Box strategy has its merits, always remember that no strategy is foolproof. Ensure to utilize it as a component of a well-rounded trading plan, incorporating sound risk management and continual learning.
📈 Try the Darvas Box Strategy on Your Chart!
Eager to explore the Darvas Box strategy on your own charts? Navigate through the markets with a strategy that has stood the test of time. Click on the following link to learn more about how to apply the script to your chart and begin your journey with the Darvas Box strategy!
👉 Try the Strategy Now!
Stay tuned for the upcoming ideas where we dissect the script’s functionalities and showcase its application across various assets and market conditions!
Disclaimer : Trading involves risk and is not suitable for every investor. The information provided is for educational purposes and should not be considered financial advice. Always conduct your own research and consider your financial situation carefully before engaging in trading.
Darvasbox
LEMONTREE - Channel breakout - 20% ROIAll details are given on chart. If you like the analyses please do share it with your friends, like and follow me for more such interesting charts.
Disc - Am not a SEBI registered. Please do your own analyses before taking position. This post is only for educational purposes and not a trading recommendation
EPL- Darvas Box Pattern - 24% ROIAll details are given on chart. If you like the analyses please do share it with your friends, like and follow me for more such interesting charts.
Disc - Am not a SEBI registered. Please do your own analyses before taking position. This post is only for educational purposes and not a trading recommendation
ORLY Long on Consolidation Break-Out🐂 Trade Idea: Long
🔥 Account Risk: 1.00%
📈 Recommended Product: Knockout
🔍 Entry: +/- 922.00
🐿 DCA: No
😫 Stop-Loss: 877.99 (898.75 for aggressive trade)
🎯 Take-Profit #1: 977.59 (50%)
🎯 Take Profit #2: -
🎯 Trail Rest: Yes
🚨🚨🚨 Important: Don’t forget to always wait for strong confirmation once possible entry zone is reached. Trade ideas don’t work all the time no matter how good they look. Do not get a victim of FOMO, there is always another trade idea waiting. 🚨🚨🚨
If you like what you see don’t forget to leave a comment 💬 or smash that like ❤️ button!
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ORLY is in an overall uptrend and broke the consolidation trendline with a strong candle going into a bullish consolidation inside a small range. Entry should only be made if the daily candle remains outside the consolidation range (green box) today. If it falls back wait for another break-out and daily close.
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Disclaimer & Disclosures pursuant to §34b WpHG
The trades shown here related to stocks, cryptos, commodities, ETFs and funds are always subject to risks. All texts as well as the notes and information do not constitute investment advice or recommendations. They have been taken from publicly available sources to the best of our knowledge and belief. All information provided (all thoughts, forecasts, comments, hints, advice, stop loss, take profit, etc.) are for educational and private entertainment purposes only.
Nevertheless, no liability can be assumed for the correctness in each individual case. Should visitors to this site adopt the content provided as their own or follow any advice given, they act on their own responsibility.
LIT potential big move
LIT had broken out the Darvas box of almost 11-month accumulation.
Retest of the box is on-going. It seems that LIT will make a big move after that.
This is a swing trade so patience may be needed to reach the 2 targets.
eicher all time higheicher has been at all-time high
it has given a weekly breakout and if it closes above 3348 this month then a monthly breakout
we fear that all-time high stock can turn down first. but mostly this is a wrong assumption
all-time high stocks are momentum and the strong break-out stock we should be in these stocks
if fear is there of losing then betting a small amount on how these stocks react can give good practical learning.
now important
eicher has given flag monthly break out and box break out at 3018
box breakout minimum target of 3769 but usually its gets doubled in bull run so target is 4504
flag breakout target 4839
GICRE - Darvas Box Pattern - 25% ROIAll details are given on chart. If you like the analyses please do share it with your friends, like and follow me for more such interesting charts.
Disc - Am not a SEBI registered. Please do your own analyses before taking position. This post is only for educational purposes and not a trading recommendation
DAR/USDT - LONG SCALPING-- Support me with numbers and follow up on my account for other deals in the future. Thank you for coming to this part.
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⚡️⚡️ DAR/USDT ⚡️⚡️
Exchange: ByBit USDT
Trade Type: Breakout (Long)
Leverage: Cross (5.0X)
Entry Orders:
1) 0.2009 - 100.0%
Take-Profit Orders:
1) 0.2089 - 65.0%
2) 0.2117 - 25.0%
3) 0.2165 - 9.998%
Stop-loss Orders:
1) 0.1966 - 100.0%
Trailing Configuration:
Stop: Breakeven -
Trigger: Target (1)
POND breaking outPOND is a crypto of Marlin protocol providing a high-performance programmable network infrastructure for DeFi and Web 3.0. Like other Web 3.0 cryptos, POND has well performed recently.
After losing 95% of value form its ATH, it has consolidated in a Darvas box since 2 months and a half.
High volume trades have been realized and pushed the price to go up. The MA 50W was broken and the Darvas box is likely to be as well.
I'm using Fib-retracement to highlight the major levels of POND if the new trend is up.
Here is the referenced setup for this trade:
Entry when there is a 1D candle closing out of the Darvas box and above the Fib 0.236 level, i.e $0.01543. One could also enter when the Darvas box is broken, i.e prices closing above $0.0144.
SL below the red line, $0.0088
Darvas box pattern is invalidated when there is a 1D candle falling and closing inside the box (after breakout). The trade must be stopped in this case.
Close to use Darvas's boxes trategyTechnically:
H4 big desc. candle, closed below the support line.
No correction above 5%
H1 shows us accumulation in a narrow range
Bearish pattern
There are empty zone below.
Green dash line is an next support.
Nicholas Darvas wrote his book after he understood that when the price follows the trend there should be possibillities to increae your position at local stops. It like a train, going fwd, and at the stations you can join the trip. Next station we expect at the 838 (supp.from the Hune 15, confirmed Jun, 30) We have to be very careful about increasing our sells and should see the confirmations from the chart. like low corrections, small bars approaching the level, close retests of the level. In this case it will be allowed to double your position with correction of SL.
$ATKR Potential breakoutATKR good earnings growth, nice VCP rounded base chart with potential breakout. Seeing good buy volume and testing $120 resistance level now.
Can go long shares as options aren't extremely liquid, I'm trading JUL 120/125 debit spread looking for a breakout higher to $125 target.
Rejection here could be looking back to 105 zone... my bias is long after a good earnings release and evidence of volume buyers
DALARNIADAR/USDT start forming Consolidation zone and its on 15min timeframe on Resisatnce zone we waiting to see next move on this coin and to take Position
Have a nice Day
hsil longhsil is following the darvas box theory and is ready to move to the next box
it is super bullish above 340
#nifty
#dowjones
XME Metals and Mining Weekly Long IdeaWeekly chart on XME looks bullish IMO.
I went long commons with price targets above 53.5 and 59 , stop around 48.
Nice breakout retest bounce and the volume leads me to be bias to more upside.
Swinging this with shares, but the April 54C also looks active with 3K OI
Avadh Sugar - Fibonacci and Darvas box - for study purpose onlyI have drawn Fibonacci retracement from 154.45 to 394.45.
I have also drawn a Darvas box from Fibonacci retracement level of 1.618 to 1
When in the box, it had a support at Fibonacci retracement level 1 => 394.45 and resistance is at Fibonacci retracement level 1.618 => 542.75
There was a price volume action when the price was entering as well as exiting the Darvas box.
I believe the stock has given a break-out from this box and might reach Fibonacci retracement level of 2 => 634.45 in near term with support at Fibonacci retracement level 1.618 => 542.75 and second support at 1.414 => 493.80
Current market price is 593.35
Please note that I am learning these things, and this for study purpose only.