The Darvas Box Trading Strategy
A Detailed Thread 🔖 + 1 Book Give Away !

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#StockMarket #darvasbox

About Darvas :
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.
1/n
It was on a two-year tour of the world that he initially developed his ‘Darvas Box’ method of screening stocks – a method of picking stocks based on the stock’s price and volume .

Read more About his life : https://t.co/58HCN9ddDG
2/n
@kuttrapali26
Trading Style :
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 :
3/n
Rules to Follow :
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
4/n
How to Trade ?
📌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
5/n
Floor: Stoploss
📌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
6/n
Example : #GREENPANEL
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
7/n
#RADICO #MANINFRA
✅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
8/n
PIC 1:
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.

9/n
Parameters checked : #MINDAIND
#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
10/n
Time and % Differece of boxes :

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
11/n
Short Ranges : IRCTC
Long Consolidation : BIRLASOFT
Short Range , Short Time : JINDWORLD
12/n
Trailing Stop and Pyramiding
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
13/
3. After the breakout of the box, if price moves higher and forms another box, then trail stop-loss to the Floor price of the newly formed box and keep trailing on each subsequent floor.
4.Exit the trade when price goes below the floor price of the recent box.
@AmitabhJha3

14/n
STOCK FUNDAMENTALS
Buy companies whose growth & earnings prospects look highly promising
Overall Market trend should be bullish
Stocks should be outperforming the general Market and should be leader
Breakout should be always on higher volume
Prefer Midcaps and Smallcaps
15/n
Youtube Video about DARVAS BOX
https://t.co/9rQXhTispw
16/n
Follow @JayneshKasliwal and Join Telegram For charts and Analysis
https://t.co/z988Tz8lYu

END

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Rig Ved 1.36.7

To do a Namaskaar or bow before someone means that you are humble or without pride and ego. This means that we politely bow before you since you are better than me. Pranipaat(प्राणीपात) also means the same that we respect you without any vanity.

1/9


Surrendering False pride is Namaskaar. Even in devotion or bhakti we say the same thing. We want to convey to Ishwar that we have nothing to offer but we leave all our pride and offer you ourselves without any pride in our body. You destroy all our evil karma.

2/9

We bow before you so that you assimilate us and make us that capable. Destruction of our evils and surrender is Namaskaar. Therefore we pray same thing before and after any big rituals.

3/9

तं घे॑मि॒त्था न॑म॒स्विन॒ उप॑ स्व॒राज॑मासते ।
होत्रा॑भिर॒ग्निं मनु॑षः॒ समिं॑धते तिति॒र्वांसो॒ अति॒ स्रिधः॑॥

Translation :

नमस्विनः - To bow.

स्वराजम् - Self illuminating.

तम् - His.

घ ईम् - Yours.

इत्था - This way.

उप - Upaasana.

आसते - To do.

स्त्रिधः - For enemies.

4/9

अति तितिर्वांसः - To defeat fast.

मनुषः - Yajman.

होत्राभिः - In seven numbers.

अग्निम् - Agnidev.

समिन्धते - Illuminated on all sides.

Explanation : Yajmans bow(do Namaskaar) before self illuminating Agnidev by making the offerings of Havi.

5/9
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6,769 rules
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I just finished Eric Adler's The Battle of the Classics, and wanted to say something about Joel Christiansen's review linked below. I am not sure what motivates the review (I speculate a bit below), but it gives a very misleading impression of the book. 1/x


The meat of the criticism is that the history Adler gives is insufficiently critical. Adler describes a few figures who had a great influence on how the modern US university was formed. It's certainly critical: it focuses on the social Darwinism of these figures. 2/x

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We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.

Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)

It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.

Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".