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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?


To: id who wrote (1934)7/17/1999 7:50:00 PM
From: Boom Dog  Respond to of 18137
 
Darvas boxes

From Nicolas Darvas' book from 1960, "how I made 2 M$ in the stock market".

Darvas reinvented standard Edwards/Magee (or should I say Schabacker) breakouts from congestion. In his concept, stocks trade in "boxes", which are essentially areas of congestion. When they break out into a new "box" (i.e. out of congestion) you should buy.

Nothing original there, and very simplistic, but it has influenced a lot of people. Gary B. Smith, I believe, credits Darvas for his most important inspiration.

- The Boom Dog

P.S. I just noticed there is an SI thread dedicated to it:
Subject 24248