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Unboxing Profits: A Modern Twist on Darvas's Strategy with VWMAIn the mid-20th century, Nicolas Darvas turned a modest investment into millions, all while traveling the world as a professional dancer. His secret? The Darvas Box Theory—a trading method that identifies stocks exhibiting strong upward momentum confirmed by increasing volume. Fast forward to today's digital trading world, and we find that Darvas's principles are still relevant, but they're now supercharged with advanced indicators like the Volume Weighted Moving Average (VWMA). Reviving a Classic with Modern Tools Our "Darvas Box Strategy with Visual Signals" leverages the simplicity of Darvas's boxes and pairs it with the insights of a VWMA. This strategy script for TradingView is designed to illuminate clear buy and sell signals on your chart, providing you with a compelling visual cue that marries price action with volume. The Anatomy of the Strategy At its core, the strategy is built on two primary components: Darvas Boxes: These are virtual 'boxes' that capture the 'high' and 'low' of a stock within a specified period. As per Darvas's original concept, a new box is formed when the stock hits a new high. The top and bottom of these boxes serve as the resistance and support levels. VWMA: The VWMA provides more than just an average price level—it integrates volume into the mix, offering a weighted average price based on the amount of activity. This gives traders a sense of whether the price movement is supported by the market's conviction. Bringing the Strategy to Life Using the script, traders can set their preferred 'Length' for the Darvas Boxes and 'VWMA Length' to tune the strategy to their trading style. The strategy plots: VWMA Line: A smooth purple line that trails the price, adjusting with the volume flow. Darvas Boxes: Visualized by green circles for the tops (resistance) and red circles for the bottoms (support). Signal Flares for Entry and Exit What sets this script apart is its ability to provide distinct 'Buy' and 'Sell' signals: Buy: When the price ascends past the bottom of a Darvas Box and stands above the VWMA, it's an indication of potential upward momentum. Sell: Conversely, a dip below the top or bottom of the box suggests a possible change in tide, prompting an exit signal. Custom Alerts for Timely Execution Recognizing the right moment to enter or exit a trade is crucial. Therefore, our strategy includes built-in alert conditions, ready to notify you of emerging opportunities as they happen. In Summary This Darvas Box Strategy with Visual Signals is more than just a nod to a bygone era of trading—it's a dynamic tool that integrates historical wisdom with contemporary analysis, aimed at helping modern traders navigate the markets with greater clarity and confidence. Remember, while this strategy offers a strong foundation, it's vital to engage it within a broader trading system that accounts for your risk tolerance and market conditions. May your trades be as graceful and deliberate as a dancer's steps, much like Nicolas Darvas himself.
Long
by PPonBIN
2
November 24, 2023- USDCAD SELL TradeRR: 1:6.6 Daily Structure is Bearish because of the 1D( supply zone 1.38880) , upon checking lower timeframe i saw a clear manipulation of highs and BOS to the downside starting from London to N.Y session last nov 23, so i set a pending order in my mt5 to anticipate the sell trade. After waiting for several hours, the trade was confirmed because of validity (check charts for full detail and clear annotation). from Daily---> down to 4H----> to 1H structure then set pending order using POI of 15 min TF. A clear wyckoff distribution takes place here. another great week :)
Short
by glyrad
4
Bitcoin 4H RSI OVERBOUGHT BEARISH DIVERGENCEBitcoin Price Analysis: As of the latest available data, Bitcoin (BTC) has reached a local high at $35,280. This level has acted as a significant resistance point in the recent price history. If Bitcoin is unable to break above this resistance, it could potentially signify a short-term top. This is an important level to watch as it may signal a reversal or consolidation in the price movement. 4-Hour RSI Overbought Bearish Divergence: The 4-hour RSI is a technical indicator that measures the momentum of the price. An RSI value above 70 is often considered overbought, indicating that the asset might be due for a pullback or correction. However, it's important to note that overbought conditions can persist in strong bullish trends. The bearish divergence occurs when the price makes a higher high, while the RSI makes a lower high. This can be a sign that the current uptrend is losing momentum, and a reversal might be on the horizon. Given the combination of the price reaching a significant resistance level and the 4-hour RSI showing signs of overbought bearish divergence, traders should exercise caution and consider potential short-term downside risk. This does not necessarily mean that a major trend reversal is imminent, but it could indicate that a pullback or consolidation phase may be in store.
by sailortrades
1st Pine Script Lesson: Coding an Indicator - Bollinger Band Welcome to this lesson on Trading View, where we will be learning how to create a Bollinger Band indicator using Pine Script. Bollinger Bands are a popular tool that helps measure an asset's volatility and identify potential trends in price movement. Essentially, the indicator consists of three lines: a middle line that's a simple moving average (SMA), and an upper and lower band that are two standard deviations away from the SMA. The upper band represents the overbought level, meaning the price of the asset is considered high and may be due for a correction. The lower band represents the oversold level, meaning the price is considered low and may be due for a rebound. Pine Script is a programming language specifically used for creating custom indicators and strategies on Trading View. It's a powerful tool that allows traders to customize their technical analysis to fit their special trading needs and gain deeper insights into the markets.. In this lesson, we'll be taking a hands-on approach to learning. We'll walk through each step of creating our own Bollinger Band indicator using Pine Script, with the goal of helping you gain confidence in your ability to customize and create indicators that meet your unique trading needs. So, grab a cup of coffee and let's get started! Step 1: Set up a new chart Let‘s set up a new clean chart to work with for this example. You will find the menu to manage your layouts on the top right of the TradingView screen. a) add a new layout b) rename it to „Mizar Example“ c) select BTCUSDT from Binance d) set the time frame to 1 hour e) clean the screen (closing the Volume indicator) f) save it Step 2: Coding an indicator Let‘s code our new indicator („Mizar-Killer-Long-Approach“)and make the possible entry moments visible on the chart. You will find the Pine Editor on the bottom left of the TradingView screen. a) open the Pine Editor b) use „Open“ in the Pine Editor menu bar c) use the item: create a new indicator d) let‘s use full screen for a better overview use the three dots on the right end of the Pine Editor menu bar and open the script in a separate new browser tab e) rename it to “Mikilap“ by clicking on the current name f) save it Step 3: Coding an indicator Let‘s start coding Our target: 1. create an own new indicator: Mikilap, which bases in general on RSI and Bollinger Band 2. define the parameter for Mikilap, to select the long entries 3. show the long entries on the chart by - putting a label below the bar - change the background color of the timeframe for the bar on the chart Initiation/Generals • Indicator initiation //Indicator script initiation indicator(title = "Mizar-Killer-Long-Approach", shorttitle = "Mikilap", overlay = true, max_labels_count = 300) indicator = Pine keyword for an indicator script title = Long form of the name short title = Short form of the name as shown on the chart overlay = true: output like labels, boxes, … are shown on the chart false: output like plots, … are shown in a separate pane • General variables and input // Coin Pair with PREFIX // Bitcoin / USDT on Binance as an example / standard value on an 60 minutes = 1-hour timeframe string symbol_full = input.symbol(defval = "BINANCE:BTCUSDT", title = "Select Pair:", group = "General") string time_frame = input.string(defval = "60", title = "Timeframe:", tooltip = "Value in minutes, so 1 hour = 60", group = "General") Using the input type of a variable allows you to change this setting in the setup on the chart without changing the Pine Script code. Framework Code on Main Level • Framework code on the main level around the indicator calculation function // Defintion of a Pine Script individual function to handle the Request and avoid Repainting Errors Function_Mikilap(simple string coinpair, simple string tf_to_use) => int function_result = 0 // placeholder for indicator calculations function_result // Calling the Milky Way function to start the calculation int indi_value = Function_Mikilap(symbol_full, time_frame) Output on the chart - Part 1 // Output on the chart // Part 1 - plotting a Bollinger Band for the active CoinPair on the chart int length = input.int(defval = 21, title = "BB Length:", group = "Bollinger Band Setting") src = input(defval = close, title="BB Source", group = "Bollinger Band Setting") float mult = input.float(defval = 2.0, title="BB Standard-Deviation", group = "Bollinger Band Setting") upper_band = ta.sma(src, length) + (mult * ta.stdev(src, length)) lower_band = ta.sma(src, length) - (mult * ta.stdev(src, length)) upper = plot(upper_band, "BB Upper", color=#faffaf) lower = plot(lower_band, "BB Lower", color=#faffaf) fill(upper, lower, title = "BB Background", color=color.rgb(245, 245, 80, 80)) Done for today! • Let‘s save our current script and take a look if we see our Bollinger Band plotted on the chart. • Step 1: Save (top right) • Step 2: check in the compiling section, that there are no errors (separate pane below the code) • Step 3: go to the Mizar Example chart and add an Indicator How does it look now? You will see the Bollinger Band as a yellow area around the candles. By pressing the „Settings“ button behind the name of our indicator, the menu for Mikilap will open and you can adjust all the settings we have done with input type variables. Congrats if you‘ve made it until here! Get prepared for the next lesson, where we will continue with the indicator/entry logic.
Education
by Mizar_trading
13