95% of stock traders use the Darvas Box strategy.
But most still don't know how to use it.
I will teach you for FREE: π
But most still don't know how to use it.
I will teach you for FREE: π
(1) Darvas box is a system that follows trends, meaning it doesn't try to predict market movements in advance. Instead, it reacts to what is happening in the market.
(2) Darvas Box Rules:
- Spot a fresh 12-month high.
- Buy fundamentally strong companies
- See if the stock is part of a strong sector.
- Once the box is formed, if the price closes above the top, itβs a buy signal. Buy at the next day's open.
- If the price closes below the bottom, itβs a sell signal. Sell at the next day's open and start again.
- Spot a fresh 12-month high.
- Buy fundamentally strong companies
- See if the stock is part of a strong sector.
- Once the box is formed, if the price closes above the top, itβs a buy signal. Buy at the next day's open.
- If the price closes below the bottom, itβs a sell signal. Sell at the next day's open and start again.
(3) How to make a Darvas Box chart:
Darvas boxes are formed by marking lines at the low and high points. x.com
Darvas boxes are formed by marking lines at the low and high points. x.com
(4) Best situations for Darvas strategy:
Darvas box strategy works best when the market is rising strongly.
If you pick the right stocks while swing trading, you can see your profits grow quickly.
Darvas box strategy works best when the market is rising strongly.
If you pick the right stocks while swing trading, you can see your profits grow quickly.
(6) Darvas stop loss:
Darvas managed risk by placing a stop-loss just below the box's lower boundary.
If the price fell back into the box, he would exit the trade to avoid bigger losses, as it could mean a false breakout. x.com
Darvas managed risk by placing a stop-loss just below the box's lower boundary.
If the price fell back into the box, he would exit the trade to avoid bigger losses, as it could mean a false breakout. x.com
(7) Darvas trailing stop loss:
Darvas adjusted the stop loss as the stock price increased, making sure it stayed below the latest low points in the consolidation phase. x.com
Darvas adjusted the stop loss as the stock price increased, making sure it stayed below the latest low points in the consolidation phase. x.com
That's a wrap!
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x.com
If you found this useful:
(1) Follow @rohaninvestor for more such threads.
(2) Bookmark this thread.
x.com
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