LOL! Hi Steve,
The Darvas box is really simple to use and is the same as when I talk on MKTSS about watching to see if the Support or Resistance is Winning. It uses the same principles of whether or not a stock, or index, is having breakouts or breakdowns and if the previous resistance is broken and becoming support or if the previous support is broken and becoming resistance. Someone put up the link to the sethi.org website and that is what I have been using for the Darvas box charts. It really could use some tweeking to set up shorter timeframes on the boxes though. Here is the link
http://www.sethi.org/investments/darvas/
Just from watching PAYX today the box theory could have captured 3 of the stocks moves, $25 to 24.50, 24.50 to $25 and $25 back to 24.60. Not too bad for just triggering the trades off of the targeted support and resistance levels of the Box. I think that the Box theory could easily be applied to Any stock or index regardless of the trend. Using the SMAs as Support or Resistance could have also worked with PAYX and triggered a Short just below 25.75, or using a small box at 25.50. You just need to adjust your Darvas box to include the last support and resistance levels IMO. Using the Box might make it easier to see the actual trade triggers. As I have pointed out before, you just need to draw a line from the last resistance to get a resistance target and the last support to get a support target. If the resistance is broken and becomes support then you are uptrending. If the support is broken and becomes resistance then you are downtrending and you adjust your trade to be in line with the trend. Using the boxes as a visualization should definitely help IMO. You can even see them a little bit if you use the grids on the chart.
Good Trading Steve! :^)
The Darvas box is really simple to use and is the same as when I talk on MKTSS about watching to see if the Support or Resistance is Winning. It uses the same principles of whether or not a stock, or index, is having breakouts or breakdowns and if the previous resistance is broken and becoming support or if the previous support is broken and becoming resistance. Someone put up the link to the sethi.org website and that is what I have been using for the Darvas box charts. It really could use some tweeking to set up shorter timeframes on the boxes though. Here is the link
http://www.sethi.org/investments/darvas/
Just from watching PAYX today the box theory could have captured 3 of the stocks moves, $25 to 24.50, 24.50 to $25 and $25 back to 24.60. Not too bad for just triggering the trades off of the targeted support and resistance levels of the Box. I think that the Box theory could easily be applied to Any stock or index regardless of the trend. Using the SMAs as Support or Resistance could have also worked with PAYX and triggered a Short just below 25.75, or using a small box at 25.50. You just need to adjust your Darvas box to include the last support and resistance levels IMO. Using the Box might make it easier to see the actual trade triggers. As I have pointed out before, you just need to draw a line from the last resistance to get a resistance target and the last support to get a support target. If the resistance is broken and becomes support then you are uptrending. If the support is broken and becomes resistance then you are downtrending and you adjust your trade to be in line with the trend. Using the boxes as a visualization should definitely help IMO. You can even see them a little bit if you use the grids on the chart.
Good Trading Steve! :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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