Replies to post #11 on The Darvas Method

[S Chun-Li]

easiest way is to look for the top first, then once u find a top, immediately go back 3 days and start the bottom search from that point.

i.e.

If we start at Day1 and by Day7 we decide the top was Day4, then we go back to Day1 and start counting for 3 days of not finding a new bottom.

Maybe not a good explanation but no more time to go into it right now!

[Zeev Hed]

Chun Li, the search engine here at I-Hub is a great wonder, this post by Augieboo summarizes a lot of my recent discussions on using boxes, #msg-593385. I deviate quite markedly from the Darvas approach (for instance, I almost always expect a stock to come back at least once into the prior box, that is how I captured QCOM under the bottom of the new box in this post #msg-582070 and then #msg-591941). The problem is that in bear markets, a stock may put together a series of three or four boxes, and in the last phase of the bear move give half (sometimes all) of th advance and then start through those boxes (faster) again. That is how I have played ELC, AGM, COO and COCO so far this year (and misplayed SKX <g>).

Mind you, I am extremely flexible with my own "box rules" and thus deviate quite markedly from Darvas' teachings.

Zeev