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Darvasbox

Reliance Industries: Could be great momentum trade!!Reliance recently raised its mobile tariff. So the stock is in news. Stock was trading in a range (rectangle pattern, darvas box, accumulation stage. After the announcement of the tariff hike by the company, its stock price broke out from the range. This breakout could be the continuation of the uptrend of the stock, and in coming days we have see further rise in the stock price of reliance. Pattern gets invalidated if it breaks down from the range.
NSE:RELIANCELong
by Pranam18
Bullish potential detected for WFCNYSE:WFC represents a potential bullish opportunity should momentum continue and newer highs be made. Entry condition: (i) breach of the upper confines of the Darvas box formation - i.e.: above high of $61.76 of 23rd April. Stop loss for the trade (based upon the Darvas box formation) would be: (i) below the support level from the low of 3rd May (i.e.: below $59.12) - most conservative exit, or (ii) below congestion area composed of volume profile zone and rising 10 day moving average (i.e.: below $60 area).
NYSE:WFCLong
by Ivory_Wolf
Unboxing Profits: A Modern Twist on Darvas's Strategy with VWMAIn the mid-20th century, Nicolas Darvas turned a modest investment into millions, all while traveling the world as a professional dancer. His secret? The Darvas Box Theory—a trading method that identifies stocks exhibiting strong upward momentum confirmed by increasing volume. Fast forward to today's digital trading world, and we find that Darvas's principles are still relevant, but they're now supercharged with advanced indicators like the Volume Weighted Moving Average (VWMA). Reviving a Classic with Modern Tools Our "Darvas Box Strategy with Visual Signals" leverages the simplicity of Darvas's boxes and pairs it with the insights of a VWMA. This strategy script for TradingView is designed to illuminate clear buy and sell signals on your chart, providing you with a compelling visual cue that marries price action with volume. The Anatomy of the Strategy At its core, the strategy is built on two primary components: Darvas Boxes: These are virtual 'boxes' that capture the 'high' and 'low' of a stock within a specified period. As per Darvas's original concept, a new box is formed when the stock hits a new high. The top and bottom of these boxes serve as the resistance and support levels. VWMA: The VWMA provides more than just an average price level—it integrates volume into the mix, offering a weighted average price based on the amount of activity. This gives traders a sense of whether the price movement is supported by the market's conviction. Bringing the Strategy to Life Using the script, traders can set their preferred 'Length' for the Darvas Boxes and 'VWMA Length' to tune the strategy to their trading style. The strategy plots: VWMA Line: A smooth purple line that trails the price, adjusting with the volume flow. Darvas Boxes: Visualized by green circles for the tops (resistance) and red circles for the bottoms (support). Signal Flares for Entry and Exit What sets this script apart is its ability to provide distinct 'Buy' and 'Sell' signals: Buy: When the price ascends past the bottom of a Darvas Box and stands above the VWMA, it's an indication of potential upward momentum. Sell: Conversely, a dip below the top or bottom of the box suggests a possible change in tide, prompting an exit signal. Custom Alerts for Timely Execution Recognizing the right moment to enter or exit a trade is crucial. Therefore, our strategy includes built-in alert conditions, ready to notify you of emerging opportunities as they happen. In Summary This Darvas Box Strategy with Visual Signals is more than just a nod to a bygone era of trading—it's a dynamic tool that integrates historical wisdom with contemporary analysis, aimed at helping modern traders navigate the markets with greater clarity and confidence. Remember, while this strategy offers a strong foundation, it's vital to engage it within a broader trading system that accounts for your risk tolerance and market conditions. May your trades be as graceful and deliberate as a dancer's steps, much like Nicolas Darvas himself.
Long
by PPonBIN
2
Combined script of MavilimW and DARVAS BOXBuy Signals: MAVW Buy Signal: This signal is generated when the MAVW crosses above its previous value. You can use this as a bullish confirmation. Darvas Box Buy Signal: The Darvas Box doesn't have a specific buy condition defined in your code, so you might want to add one. Typically, traders look for price breaking out above the upper boundary of a Darvas Box as a potential buy signal. Sell Signals: MAVW Sell Signal: This signal is generated when the MAVW crosses below its previous value. You can use this as a bearish confirmation. Darvas Box Sell Signal: Similar to the buy condition for the Darvas Box, you can define a sell condition based on the price breaking below the lower boundary of a Darvas Box. To make these signals more actionable, you can consider using a combination of these conditions. For example: Ideal Buy Points: Buy when MAVW crosses above its previous value (MAVW Buy Signal) AND the price breaks above the upper boundary of a Darvas Box (Darvas Box Buy Signal). Ideal Sell Points: Sell when MAVW crosses below its previous value (MAVW Sell Signal) OR the price breaks below the lower boundary of a Darvas Box (Darvas Box Sell Signal). Keep in mind that you may need to adjust the parameters and conditions based on the specific financial instrument you are trading and the time frame you are using. Additionally, consider using stop-loss and take-profit levels to manage risk and lock in profits when trading with this strategy. It's also a good practice to backtest the strategy on historical data to evaluate its performance before using it in a live trading environment.
COINBASE:BTCUSDLong
by PPonBIN
Combined Box and Squeeze Strategy (Now includes shaded boxes)Description: This Pine Script strategy, titled "Combined Box and Squeeze Strategy", is a unique blend of two powerful trading concepts: "The Box Percent Strat" and "Squeeze Box ". The strategy is designed to work on the TradingView platform and can be applied to a wide range of financial instruments across various timeframes. Key Features: Box Percent Strategy: This part of the strategy creates dynamic boxes based on percentage movements. These boxes adjust their size depending on the price action, enabling traders to visualize significant price levels for potential entries and exits. Squeeze Box Indicator: Incorporated from "Squeeze Box ", this element adds a volatility component to the strategy. It helps identify potential breakout situations by highlighting periods of low volatility, which are often precursors to significant price movements. Light Blue Shading: To enhance visual clarity and ease of interpretation, the areas between the top and bottom of the box are shaded in light blue. This feature provides a quick and easy way to identify the current box formation. Multiple Moving Averages and Conditions: The strategy employs various moving averages (EMA, SMA, SMMA, etc.) with an adjustable sampling period. It also includes conditions for buying based on moving average trends and squeeze box breakout signals. Risk and Trade Management: Incorporates a basic risk management strategy where the number of shares to trade is calculated based on the user's specified risk per trade and the size of the box. Customizable Parameters: Several inputs and parameters can be customized, including risk per trade, box size percentage, moving average type, and more, allowing traders to tailor the strategy to their trading style and risk tolerance. Usage: This strategy is best used in markets with clear trends and can be applied to various asset classes including stocks, forex, and cryptocurrencies. It is particularly useful for traders looking to capitalize on breakout scenarios and for those who appreciate visual aids in chart analysis. Remember, this script should be used as a part of your broader trading strategy and should not be relied upon solely for making trading decisions. Always backtest the strategy with historical data and use it in conjunction with other analysis methods.
NYSE:VFCLong
by PPonBIN
Box and Squeeze Strategy - Darvas InspiredDescription The "Combined Box and Squeeze Strategy" is a comprehensive trading script developed for the TradingView platform. It merges two distinct analytical approaches: "The Box Percent Strat" and "Squeeze Box ," offering traders a multifaceted tool for market analysis. Key Features Box Percent Strat: This component of the strategy dynamically adjusts trading boxes based on price movements. The top and bottom of the box are recalculated as the market evolves, providing visual cues for significant price levels. Squeeze Box : Focused on volatility and market squeeze, this part of the strategy utilizes Bollinger Bands and a custom Moving Average calculation. It identifies periods of low volatility (squeeze) and plots high and low squeeze box levels, aiding in the identification of breakout opportunities. Dynamic Moving Average Calculation: The script includes various options for moving average calculations, such as EMA, SMA, WMA, VWMA, and more. Users can select their preferred type, which is then integrated into both the box calculations and squeeze analysis. Trading Signals: Entry and exit points are suggested based on the strategy's logic, which combines box breakouts and moving average trends. These signals can be used to inform trading decisions in conjunction with a user's existing strategy. Visual Plotting: Key levels, including box boundaries and moving averages, are plotted directly on the chart, making the analysis straightforward and visually accessible. Usage Ideal for various markets and timeframes. Can be customized to fit individual trading styles by adjusting input parameters. Should be used in conjunction with proper risk management strategies. Disclaimer This script is provided for educational purposes and should be tested thoroughly in a simulated environment before being applied to live trading. Users should trade based on their discretion and understanding of the financial markets.
ASX:IMULong
by PPonBIN
How to find Darvas Stocks using TradingView's Stock Screener 2.0🔷 Introduction Nicolas Darvas, a dancer by profession and a self-taught trader, managed to turn a mere $36,000 into a whopping $2 million within an 18-month timeframe during the late 1950s. His approach to trading, now famously known as the Darvas Box Theory, primarily focused on trading stocks that were making new highs. But why was Darvas so fixated on these particular stocks? Darvas believed that stocks hitting new highs were driven by fundamental factors that had caught the attention of many investors, thereby driving up demand. He was particularly interested in stocks that were not only hitting new highs but were also accompanied by significantly higher-than-average trading volumes, indicating strong investor interest and buying pressure. These stocks, often referred to as "Darvas Stocks," typically exhibit a strong upward momentum and are characterized by their ability to remain resilient, even in a sideways or bearish market. In this guide, we will explore how to utilize TradingView's Stock Screener 2.0 to identify potential Darvas Stocks by filtering for stocks that are near their all-time or 52-week highs and are trading on above-average volumes. 🔷 Step 1: Open Stock Screener 2.0 First, navigate to the Stock Screener 2.0 by clicking here: www.tradingview.com Your screener should look like this: Note: TradingView also has a Stock Screener 1.0. (available at www.tradingview.com). Do not use version 1.0, as it does not have the necessary filters we are going to use in our quest for Darvas Stocks. 🔷 Step 2: Set Up the Price Filter To identify stocks that are near their all-time or 52-week highs, we'll set up a custom Price filter. To create a custom Price filter, click on the Price filter button and select "Custom". If you can't see the Price button in the top toolbar, click on the + icon and search for Price. In the Price filter creation dialog, in the first drop-down, select "Below %". In the second drop-down, select a percentage (e.g. 0-5%). This is how much the price will have to be below the all-time/52-week high in order to qualify as a Darvas Stock. In the third drop-down, select "New high". And finally, in the fourth drop-down, select either "52W" or "All Time", depending on the timeframe you wish to use. When fully configured, your custom price filter should look like this: Once you click on the button with the tick, your filter should be applied. Next, let's set up the Volume filter to only show those stocks that trade above average volume. 🔷 Step 3: Configure the Volume Filter Darvas placed a significant emphasis on volume as it indicated the strength behind the price movement. To create a custom Volume filter, click on the + icon and search for Volume. You have multiple options here. You can either compare the daily/weekly volume against weekly/monthly volume or compare volume averages. If you would like to compare the stock's Volume, select "Volume" from the results. If, instead, you would like to compare volume averages, choose "Average Volume". In the example below, we will show you how to set up the volume filter so that it only shows those stocks which have their 10-day average volume trading 50% or more above their 30-day average volume. To compare volume averages, create a custom "Average Volume" filter. In the Average Volume filter creation dialog, in the first drop-down, select 10D. In the second drop-down, select "Above %" In the third drop-down, select "50% or more". In the fourth drop-down, select "Average Volume". And finally, in the fifth drop-down, select 30D. When fully configured, your custom average volume filter should look like this: Once you click on the button with the tick, your filter should be applied. 🔷 Step 4: Additional Filters (Optional) You may also want to apply additional filters based on your trading preferences, such as: Market Capitalization: Filter stocks based on their market cap to focus on companies of a particular size. Sector/Industry: If you want to focus on specific sectors or industries, apply the relevant filters. 🔷 Step 5: Analyze the Results Once you have your list of potential Darvas Stocks: Examine the Charts: Look for stocks that are forming a Darvas Box, indicating a consolidation period followed by a breakout. Fundamental Analysis: Although Darvas primarily used technical analysis, ensuring the company has solid fundamentals can provide additional confirmation. 🔷 Step 6: Continuous Monitoring Maintaining a watchful eye on the stocks that align with your criteria can offer valuable insights into market behaviour and the practical application of the Darvas Box Theory. It's essential to observe how these stocks perform, particularly how they behave around their respective boxes, and to use this as a learning opportunity to understand the nuances and potential challenges of implementing this strategy in real-time trading scenarios. 🔷 Conclusion Utilizing TradingView's Stock Screener 2.0 to identify potential Darvas Stocks provides a structured and efficient method to explore and understand the principles that Nicolas Darvas applied to his own trading journey. Observing stocks that are making new highs on above-average volumes allows you to delve deeper into the Darvas Box Theory and appreciate its practical applications and limitations. Remember, the objective is to learn and understand the strategy, not to provide a foolproof trading system. Always approach trading with caution, and consider utilizing a demo account to practice without risking actual capital.
NASDAQ:TSLAEducation
by WhiteboxSoftware
HOW-TO: Navigate the Market with the Darvas Box Strategy 🚀 Introduction to the Darvas Box Strategy Nicolas Darvas, a dancer by trade, crafted a unique and potent trading strategy during his global tours, famously turning $36,000 into $2 million within an 18-month timeframe during the 1950s. His approach, detailed in his book "How I Made $2,000,000 in the Stock Market," revolves around the concept of the "Darvas Box" - a method that encapsulates price movements and leverages breakout patterns, all while keeping a keen eye on volume. Darvas sought stocks carving all-time highs and observed their trading ranges, creating a "box" from the consolidation periods. He would buy on the breakout above the box and implement a stop-loss below it, ensuring a meticulous risk management approach. 🛠️ Harnessing the Darvas Box Strategy with Our Script Our Darvas Box strategy script is designed to encapsulate the essence of Darvas’s strategy, providing traders with a tool to not only identify and visualize Darvas Boxes but also to backtest the strategy across various assets and timeframes on the TradingView platform. 🗝️ Key Features: Backtesting Capability : Evaluate the Darvas Box strategy’s historical performance on your chosen asset. Versatile Entry Filters : Customize your entry criteria, ensuring alignment with your risk tolerance and trading style. Volume Analysis : Integrate volume filters to validate breakout movements, adhering to Darvas’s emphasis on robust volume to confirm breakouts. Visual Aids : The script visually plots Darvas Boxes and potential entry/exit points, aiding in swift analysis and decision-making. 📊 Utilizing the Script for Informed Trading Decisions The script is not a 'get-rich-quick' tool but a sophisticated aid to navigate through the markets using a time-tested strategy. It allows you to: Identify and visualize Darvas Boxes on any chart. Backtest the strategy to understand its historical performance. Customize settings to align with your trading preferences. Receive alerts for potential entry and exit points based on your criteria. 📘 Dive Deep with Upcoming Publications In the subsequent publications, we'll delve deeper into the various configuration sections of the script, exploring settings, filters, and optimizations to ensure you can tailor the strategy to your unique trading approach. 🔍 Explore, Analyze, and Trade Wisely While the Darvas Box strategy has its merits, always remember that no strategy is foolproof. Ensure to utilize it as a component of a well-rounded trading plan, incorporating sound risk management and continual learning. 📈 Try the Darvas Box Strategy on Your Chart! Eager to explore the Darvas Box strategy on your own charts? Navigate through the markets with a strategy that has stood the test of time. Click on the following link to learn more about how to apply the script to your chart and begin your journey with the Darvas Box strategy! 👉 Try the Strategy Now! Stay tuned for the upcoming ideas where we dissect the script’s functionalities and showcase its application across various assets and market conditions! Disclaimer : Trading involves risk and is not suitable for every investor. The information provided is for educational purposes and should not be considered financial advice. Always conduct your own research and consider your financial situation carefully before engaging in trading.
NASDAQ:TSLAEducation
by WhiteboxSoftware