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

To: Dow Beater who wrote (285)	2/1/1999 5:32:00 PM
From: Iceberg	Read Replies (1) \| Respond to of 498

>Looks good, Ice, but it's not forming any boxes yet, just headed up. >What do you think of GTW – Gateway? Dow Beater, The AVS and GTW charts look very similar to me. Neither has formed a box in the sense that no bottom has been formed in the current box for either stock. Looks like the main difference is that GTW is up the past few days on down volume, while AVS is up the past few days on up volume; the latter situation being slightly more preferable. Also, GTW is extended beyond its base a bit more than is AVS. Anyway... So what's the matter with a stock such as AVS or GTW that's "just headed up"? My understanding of the Darvas method is that it isn't necessary for a box to have been completely formed before taking a position, and that the time to buy is when a stock breaks into a new box. That, by definition, means the new box is incompletely formed. Is this your understanding too? If so, then it seems to me that both AVS and GTW are buys right now, and there is no need to wait for the bottom of the present box to form before buying either stock. Ice