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

Rules For Giveaway :
Follow @JayneshKasliwal
ЁЯФДRetweet and
тЩея╕П Like this Tweet
One Lucky Winner will be Selected
#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 тАШDarvas BoxтАЩ method of screening stocks тАУ a method of picking stocks based on the stockтАЩs price and volume .

Read more About his life : https://t.co/58HCN9ddDG
2/n
@kuttrapali26
Trading Style :
TREND FOLLOWING MOMENTUM TRADING
ЁЯУМDarvas was tracking stocks only making new high
Trading stocks breaking 2-3 year high.
ЁЯУМBut 52-week high is mostly tracked for this theory
ЁЯУМEmphasized 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 ?
ЁЯУМWhenever the stocks breaks the 52 week Keep them on watchlist
ЁЯУМLook that The next 3 candles should not break the 52 week high and fall below
ЁЯУМThe high point will be called as CEILING
ЁЯУМLook for Volume Breakout too or Breakout should be Above Average volume
5/n
Floor: Stoploss
ЁЯУМFloor is basically the a small reversal point or bottom the stock is trying to make.
ЁЯУМFloor is generally the stoploss of the trade
ЁЯУМThe 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
тЬЕEnter When 52 Week High is Broken , and Keep Adding as and when the box formation takes place .
ЁЯЫСKeep 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

More from JayneshKasliwal

The Ultimate Guide to moving averages !
A mega thread to understand the Use of 21 , 50 and 200 ema.
4 Effective uses of Exponential Moving Averages !

Retweet and Share ЁЯФД
#stockmarkets #nifty
@kuttrapali26 @caniravkaria

Once Can refer the use of Moving Averages Throught this thread


4 Popular uses of moving averages

1. Identifying the direction of trend
2. MA crossover
3. Dynamic Support and Resistance
4. Price Crossing above Key EMAs

Note : In chart 21 ema is red , 50 ema is green and 200 ema is black

2/n


Why EMA and not SMA ?
EMA is fast , accurate and prices in recent data !
3/n


Use 1 : Identifying the trend of stock on dtf

The 21 ema will tell us the Short term trend of a stock , while the 200 ema will tell us the long term trend of a stocks

Any EMA that is sloping
:upwards trend is BULLISH
:sideways trend is NEUTRAL
:downwards trend is BEARISH
4/n

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1

From today, we will memorize the names of 27 Nakshatras in Vedic Jyotish to never forget in life.

I will write 4 names. Repeat them in SAME sequence twice in morning, noon, evening. Each day, revise new names + recall all previously learnt names.

Pls RT if you are in.

2

Today's Nakshatras are:-

1. Ashwini - рдЕрд╢реНрд╡рд┐рдиреА

2. Bharani - рднрд░рдгреА

3. Krittika - рдХреГрддреНрддрд┐рдХрд╛

4. Rohini - рд░реЛрд╣рд┐рдгреА

Ashwini - рдЕрд╢реНрд╡рд┐рдиреА is the FIRST Nakshatra.

Repeat these names TWICE now, tomorrow morning, noon and evening. Like this tweet if you have revised 8 times as told.

3

Today's Nakshatras are:-

5. Mrigashira - рдореГрдЧрд╢рд┐рд░рд╛

6. Ardra - рдЖрд░реНрджреНрд░рд╛

7. Punarvasu - рдкреБрдирд░реНрд╡рд╕реБ

8. Pushya - рдкреБрд╖реНрдп

First recall previously learnt Nakshatras twice. Then recite these TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet only after doing so.

4

Today's Nakshatras are:-

9. Ashlesha - рдЕрд╢реНрд▓реЗрд╖рд╛

10. Magha - рдордШрд╛

11. Purvaphalguni - рдкреВрд░реНрд╡рд╛рдлрд╛рд▓реНрдЧреБрдиреА

12. Uttaraphalguni - рдЙрддреНрддрд░рд╛рдлрд╛рд▓реНрдЧреБрдиреА

Purva means that comes before (P se Purva, P se pehele), and Uttara comes later.

Read next tweet too.

5

Purva, Uttara prefixes come in other Nakshatras too. Purva= pehele wala. Remember.

First recall previously learnt 8 Nakshatras twice. Then recite those in Tweet #4 TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet if you have read Tweets #4 & 5, both.
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Dhanwanthari Temple, Nelluvai
Thrissur District, Kerala.ЁЯЪйЁЯЪй

реР рдирдореЛ рднрдЧрд╡рддреЗ рд╡рд╛рд╕реБрджреЗрд╡рд╛рдп рдзрдиреНрд╡рдиреНрддрд░рдпреЗ рдЕрдореГрддрдХрд▓рд╢ рд╣рд╕реНрддрд╛рдп
рд╕рд░реНрд╡рд╛рдордп рд╡рд┐рдирд╛рд╢рдирд╛рдп рддреНрд░реИрд▓реЛрдХреНрдпрдирд╛рдерд╛рдп рд╢реНрд░реА рдорд╣рд╛рд╡рд┐рд╖реНрдгрд╡реЗ рдирдордГ
#temples

Dhanwanthary Moorthy temple in Nelluvai is one among the ancient temples in Kerala.


Dhanwanthari is the Deva of Ayurveda. It is said that the murthy at the temple was installed by Ashwani Devas and it was the same idol worshipped by Sri. Vasudevar in the Dwapara Yuga. The Dhanvanthari Moorthi is facing towards the west
@SriramKannan77


Smrata-Matrarti-Nasanah', Srimad Bhagavatam states that the one who remembers the name of Dhanwantari will be cured and protected from all the diseases. Temple is known for its Oushada Prasada with Ayuvedic medicinal values, called Mukkudi.


Mukkudi Nivedyam is a very special offering to Dhanwantari. It is prepared by using dry ginger, pepper, pomegranate peel, cumin seed, turmeric, rock salt and other medicinal items. It is offered during 'Usha- Pooja', and is later on distributed to the devotees present there.