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

To: Mike Perras who wrote (314)	2/4/1999 9:56:00 PM
From: Dow Beater	Read Replies (1) \| Respond to of 498

Mike, Darvas liked to use what's called a buy stop set for when a stock was breaking through the top of a box (through resistance). In technical analysis there's a saying: Resistance, once broken, often acts as support, once tested. Darvas was a momentum investor, not a bottom fisher. -- Dow Beater

To: Mike Perras who wrote (314)	2/5/1999 9:06:00 AM
From: Iceberg	Read Replies (1) \| Respond to of 498

>he seemed to want to dive into stocks that were at the low end of the yet to be achieved new 'box' Mike, No, that's not my understanding of what Darvas did. Darvas bought a stock as it entered a new [higher] box. In other words, just as it makes a new high. At that point, it's not necessarily at the "low end" of the new box since the low end of the new box had not been formed at the time Darvas bought...and would have been an unknown to him at that time. I think that once the bottom of the new box did form, subsequent to his having bought, then he used that bottom as a reference point for placing his stop loss orders. So I don't think Darvas waited for any bottom formation before buying. As Dow Beater said, Darvas was not a "bottom fisher" in any sense of the term. Ice