Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: woodstr who wrote (276)	1/27/1999 11:26:00 AM
From: Iceberg	Read Replies (2) \| Respond to of 498

woodstr, Yes indeed, those are the relevant pages and concepts I vaguely recalled from reading the book. On page 51 Darvas said, a stock "could bounce between the top and bottom of the box and I was perfectly satisfied". And, "if it did not bounce up and down inside that box I was worried. No bouncing, no movement, mean it was not a lively stock". Then on page 52...."If it were not a lively stock I was not interested". I think that's what Dow Beater might have been referring to in post #273? As to how long Darvas would watch a stock in a box? Again, on page 52 he says, "I found that a stock sometimes stayed for weeks in one box. *I did not care how long it stayed in its box as long as it did - -*" [emphasis mine] >If I'm not mistaken, in the TA world a horizontal pause in the trend is not so bad......gets out the people who don't want to ride it out and it usually continues in the trend it was heading in prior to the pause. Yes, that's my understanding too. On page 53 I think Darvas referred to that concept by making an analogy to a dancer..."Before a dancer leaps into the air he goes into a crouch to set himself for the spring. I found it was the same with stocks". My interpretation of TA is as you said, and as Darvas alluded to...a stock in a pause mode "was like a dancer crouching, ready for the spring-up". Thanks for insight and for locating the pertinent pages! You certainly saved me some time looking. Ice