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Strategies & Market Trends : The Darvas Box Thread - Using the Nicholas Darvas system -- Ignore unavailable to you. Want to Upgrade?

To: MechanicalMethod who wrote (451)11/25/2002 5:44:42 PM
From: booters  Respond to of 498
 
This idea looks interesting. MM I looked at your logic as listed below but see a problem with the assumption. I also made the same mistake when I first looked at it.

var: trendUp(false), top(0), bottom(0), pyramid(false), shadow(0);

if h > highest(h,250) then trendUp=true;

if trendUp=true then begin
...if marketPosition=0 then buy next bar at open;
...if h > highest(h,3) then pyramid=true else pyramid=false;
...if h > highest(h,3) then top = h;
...if h < highest(h,3) and L < lowest(L,3) then bottom=L; {bug}
...shadow = .95 * bottom;
...if L < shadow then trendUp=false; {?}
end;

if marketPosition > 0 then begin
...if trendUp=true and pyramid=true then buy next bar at open;
...if L < shadow then exitLong stop at shadow;
...if trendUp=false then exitLong at market:
end;

This is determining if the high is greater than the high of the last 3 bars but in the description ( I forget now where I read it ) it was not the high of the last three bars, it was more of a 3 bar top he was looking for. I may not understand your code here but if that is what you are looking for then I think it is wrong. All this would do is create a channel based on 3HH/LL lines.

Anyhow......am interested in your comments.

boots



To: MechanicalMethod who wrote (451)11/25/2002 6:22:11 PM
From: booters  Respond to of 498
 
share.esignal.com

this is my attempt to determine the last two boxes on a recent 5 minute chart of the ES. If I recall the top or bottom of a box is determined by three failed attempts to penetrate a price level.

Not sure this is correct. Please comment.

boots



To: MechanicalMethod who wrote (451)11/25/2002 6:31:58 PM
From: booters  Read Replies (1) | Respond to of 498
 
Wellllll............never mind (hehe)

A) When the price of a rpidly rising stock reaches a resistance point which it does not surpass for 3 or more conescutive days, that point represents the top of the box.
B) If, after falling from the upper limit, the stock reaches a downward resistance point which it does not penetrate for 3 or more consecutive days, that level represents the bottom of the box.

According to those rules I am VERY wrong. It does appear to be as simple as a 3 bar HH/LL (almost). So he has devised a rule set for trading that simple indicator. Very interesting to me since it is one of my all time favorites and is the basis for the "Bootsbox". Hmmm...that is interesting also since I never knew about his until after I developed mine. Mine is a good bit different but is based on the same type of channel. Maybe the two combined might be worth looking at. Will have to do that.

boots


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