Hi Spark
The timeframe can be any that you choose to use. You can break the boxes down to intraday ticks or stretch them out to daily, weekly, monthly, yearly price levels, whichever timeframe you choose to box the pricing. Here is a look at a SINA 6 month chart, where Darvas could have been used for a downtrending stock. Can you identify any of the breakdowns of prior price 'boxes' on increasing volume? A longer term short might have used the recovery of 30 in mid May as a cover, or if the prior trading range was identified as $5 boxes might have covered in mid May at 25. Then either looked to play the upside or just wait for the downtrending boxes to re-establish the downtrend. On the lower LSCP chart intraday Friday can you see any 'box' breakouts on volume where the Darvas method could have been applied? It can be used for any timeframe you wish to apply it to.
I hope this helps. Sincerely, Bob :^)
The timeframe can be any that you choose to use. You can break the boxes down to intraday ticks or stretch them out to daily, weekly, monthly, yearly price levels, whichever timeframe you choose to box the pricing. Here is a look at a SINA 6 month chart, where Darvas could have been used for a downtrending stock. Can you identify any of the breakdowns of prior price 'boxes' on increasing volume? A longer term short might have used the recovery of 30 in mid May as a cover, or if the prior trading range was identified as $5 boxes might have covered in mid May at 25. Then either looked to play the upside or just wait for the downtrending boxes to re-establish the downtrend. On the lower LSCP chart intraday Friday can you see any 'box' breakouts on volume where the Darvas method could have been applied? It can be used for any timeframe you wish to apply it to.
I hope this helps. Sincerely, Bob :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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