Darvas Box Theory Simplified📒
🔵Its a trading strategy developed by Nicolas Darvas
🔵It targets the #stocks which are hitting new highs with rising volumes
🔵It works well in bullish markets
🔵Darvas Box covers lows & highs of a stock moving in a range for certain period
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Darvas Box Theory Simplified📒
🔵Search for all the #stocks which are moving in a certain range with excellent fundamentals
🔵Then cover that range bound move with box called DARVAS BOX
🔵Apply Fibbonacci extensions once any stock breaks the upper or lower range of the BOX
2/n
Darvas Box Theory Simplified📒
💡Case Study- #Abbott
🔵Use weekly chart to capture big moves & Daily chart for small moves
🔵We need ultimate PATIENCE in trade if we use this strategy
🔵Abbott broke out the box with volumes & gave 4500 pts move
End of Thread
Thanks 🙏
