StockFetcher Forums · General Discussion · BottomLineStocks<< 1 ... 5 6 7 8 9 ... 19 >>Post Follow-up
txtrapper
548 posts
msg #32033
Ignore txtrapper
5/11/2004 10:20:34 PM

A lot of people ask me about the "Darvas Box Theory", I have posted a short description;

The Method

He stuck to technical price and volume data which he could get, albeit with a large timelag. His identifying signal was a large volume expansion that suggested a surge in demand. Then he would watch the stock. If it rose in price, he would cable a buy order with an in-built stop loss.

He would set what he called a "box" which is an acceptable trading range. If the stock stayed within that range he would continue to watch it with his position still live. If the stock fell out of that range, he would sell it automatically with a stop loss order. If the stock rose out of the range, particularly on large volumes, then Darvas would buy more.

This time, he would use a trailing stop loss. His second order would raise the level of the stop loss order. This would be set slightly below the bottom of the "new box" in which the stock traded. If the stock rose again, he would move up the trailing stop-loss. Actually this ensured an automatic booking of profit of the stock before it started to lose ground. If the stock continued to gain, Darvas' system would not allow a sell.

The box with the trailing stop-loss works pretty well, provided you pick the stock with the right sort of trading pattern and also select the right support-resistance levels for the trading range. The amazing thing is that Darvas had the mental vision to do this without drawing charts. A Point & Figure chart can also help at perfecting this box theory. Obviously the support-resistance zones must be wider if dealing with a more volatile stock.

Darvas says he worked out his boxes by comparing previous observations of stocks and using "trial and error". The other interesting thing is that Darvas could trade so successfully in such a leisurely fashion while using a completely technical system.

His success is possibly the greatest example of the complete scalability of technical analysis (TA). Normally TA is used to trade short timeframes. But it can also be adapted to long timeframes. Several people have modified Darvas's methods to write computerised trading programs. These are used in forex markets and in futures with one-minute timeframes! The key factors are to query for volume expansion and then follow the stock until the range can be set. In the commercially available programs, the options for setting ranges range from the simply visual to sophisticated statistical analysis.

I discovered Mr. Darvas quite by accident and soon learned that his book was consistently referenced by William O'neil in IBD.

TxTrapper

http://finance.groups.yahoo.com/group/bottomlinestocks/




txtrapper
548 posts
msg #32038
Ignore txtrapper
5/12/2004 8:51:21 AM

Stock to Watch Today; Wednesday..May 12, 2004

STRN...$3.15 Resistance/Sell @ $3.60
SIII...$1.69 Resistance/Sell @ $1.90


Behold the power of the triangle, for it leads to big profits!

TxTrapper


mslattery@dc.rr.com
86 posts
msg #32052
Ignore mslattery@dc.rr.com
5/13/2004 12:27:53 AM

Darvas Box Theory:

Thanks TxTrapper for the history, it seems that this could be applied to many other filters, box their range and then go on autopilot.

Is there a canned filter for price and volume on StockFetcher that will draw this box?

Michael


txtrapper
548 posts
msg #32055
Ignore txtrapper
5/13/2004 8:26:36 AM

Best to wait for a 5-15 minute "green hold" before entry.


Stocks ready to move $1 - $10;

CPN,COMS,RAD,TMTA,GTW,BE,GW,DSS,LQMTE,DTAS,OCA,KEP
.................................................

Penny Stocks ready to move $0.01 - $0.99;

BKHM,VRA,TMAR,NEOM,GLBT,NTHD,DNAP,DIO,NNOSE,ENRNQ,USTT,AVR,PRVH,IBXG,NPCT
.................................................


TxTrapper

Come join the group; http://finance.groups.yahoo.com/group/bottomlinestocks/


txtrapper
548 posts
msg #32056
Ignore txtrapper
5/13/2004 8:29:47 AM

mslattery;

I found these sites, some that actually draw the Darvas Boxes;

http://search.yahoo.com/search?p=%22Darvas+Box%22&ei=UTF-8&fr=fp-tab-web-t&cop=mss&tab=


TxTrapper



mslattery@dc.rr.com
86 posts
msg #32086
Ignore mslattery@dc.rr.com
5/14/2004 1:22:21 AM

Thanks, lost of good information, not much help for us SF'ers. Found the code for the DV-Box for meta stocks. Is there anyone in this group or the yahoo group that could convert it to an SF acceptiable code?

I appriciate your taking the time to follow up on my question. Thanks again. Michael

The Metastock DV-Box Code:
Ht:=If(Cross(HHV(H,4)=Ref(H,-3),.9)=1,Ref(H,-3),PREV);
Top:=If(Ht>Ref(Ht,-1),Ht,PREV);
Lt:=If(Cross(HHV(H,4)=Ref(H,-3),.9)=1,L,PREV);
Bot:=If(Lt<Ref(Lt,-1),Lt,PREV);
Top;
Bot


txtrapper
548 posts
msg #32090
Ignore txtrapper
5/14/2004 8:18:35 AM

mslattery;

Post your question on the "Filter Exchange" link.


TxTrapper


txtrapper
548 posts
msg #32133
Ignore txtrapper
5/19/2004 8:25:38 PM


Stock Picks for Thursday...May 20, 2004

Wait for a 5-15 minute "green hold" before entry.


PRLS...$1.38
XYBR...$1.23
ACPW...$3.29
LCCI...$4.03


TxTrapper

http://finance.groups.yahoo.com/group/bottomlinestocks/


txtrapper
548 posts
msg #32148
Ignore txtrapper
5/22/2004 8:39:20 AM

These are from my 18% scan model, recently some stocks from this scan made
18% moves in one day. Use caution, I am not recommending you buy
these stocks, but many have potential for huge moves Monday.

BRCD...$5.84
DAL....$6.64
DIO....$0.12
CHRS...$8.12
TMWD...$4.33
VROT...$1.84
SPHC...$1.20


TxTrapper
Moderator

Join us; http://finance.groups.yahoo.com/group/bottomlinestocks/



txtrapper
548 posts
msg #32191
Ignore txtrapper
5/26/2004 5:51:24 PM

Posted: Wed May 26, 2004 3:23 pm Post subject: 5.26 MEMBERS CHOICE CHAMPION - TXTRAPPER

--------------------------------------------------------------------------------

Congratulations TXTRAPPER

You are todays DanceswithBulls.com Members Choice Champion.

(1st) TXTRAPPER RSCA 50.94
(2nd) SD235 ONEV 19.10
(3rd) RYANT CTKH 17.39
___________________________________________________ __________
Here are the results from all participants:

TXTRAPPER RSCA 50.94
SD235 ONEV 19.10
RYANT CTKH 17.39
FINANCIALADVISOR GTEL 10.42
KENSER80 TZOO 9.38
XPECULATOR LMRI 2.33

LEDROG FXGP -1.23
TOMMY TALL -3. 03
SCORPIONET GZFX -8.08
PEGASUS QBID -13.61
MALLOY TSBB -1 4.16
CABBAGE22 DRDF -18.18
FOLLOWMYPICKS SSWH -22.03
SULLEYKEV ADZR -24.32


Make sure you stop by all the forums and check out the Great Due Diligence of all members! Outstanding Job!
_____________________________________________________________

Remember to review the Member's Choice Forum each day before the markets open as part of your daily routine!

Make sure you have your picks in by 9:30am for Monday's contest! Be sure to submit your picks in the Members Choice Forum. Include when possible a brief company profile and a description of why you believe your stock will move. Feel free to include news, charts and other data. Remember only one person per pick. First Come
_________________
Use the information found here as an initial starting point for conducting your own due diligence on the featured companies in order to determine your own personal opinion before investing in these or any other companies.



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