Tuesday, February 25, 2003 6:29:24 PM
How about Q as a Trending stock?
You can see how using the Box theory with previous resistance becoming support and previous support becoming resistance could have been used while Q was uptrending and again when it was downtrending. You can almost just use the grids in the chart for the boxes as the stocks support and resistance levels switched at nearly every 50 cent level. If Long from $4 in Dec you would have continued buying shares on the breakouts and finally stopped out on the move back below 5.50. You can see where you could have used the Darvas boxes in reverse with the move back below 5.50 in Jan. You can also see how using the SMAs switching from support to resistance would have worked. Too bad I keep being forgetful about following Trending stocks Eh? Hopefully this will help some others looking into the Darvas method and how it could be applied in either an uptrend or downtrend :^)
You can see how using the Box theory with previous resistance becoming support and previous support becoming resistance could have been used while Q was uptrending and again when it was downtrending. You can almost just use the grids in the chart for the boxes as the stocks support and resistance levels switched at nearly every 50 cent level. If Long from $4 in Dec you would have continued buying shares on the breakouts and finally stopped out on the move back below 5.50. You can see where you could have used the Darvas boxes in reverse with the move back below 5.50 in Jan. You can also see how using the SMAs switching from support to resistance would have worked. Too bad I keep being forgetful about following Trending stocks Eh? Hopefully this will help some others looking into the Darvas method and how it could be applied in either an uptrend or downtrend :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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