TheRumpledOne
6,411 posts
msg #27964
- Ignore TheRumpledOne |
8/22/2003 5:52:26 PM
Noah:
Excellent work on the Darvas Box Theory Site!
I am curious if you take volume into consideration.
Also, is the HIGH a 52 week high?
Do you have a Darvas Box Theory Filter or 2?
Thanks again for sharing your efforts.
MAY THE TRADE BE WITH YOU?
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TheRumpledOne
6,411 posts
msg #27967
- Ignore TheRumpledOne |
8/22/2003 7:13:07 PM
NOAH:
Darvas didn't have RSI(2)..had NOT been invented yet.
"The Relative Strength Index was first introduced by J. Welles Wilder in the June 1978 issue of Commodities (now known as Futures) magazine, later in his book New Concepts in Technical Trading."
http://www.trade10.com/relative_stre.htm
Looking at TDF for the last box period, RSI(2) would have signaled an entry on 8/8/03 at close of $11.95. Which gives a jump on the Darvas entry on 8/13/03 at close of $12.54.
Not trying to take anything away from your fine work. I would use the Darvas Box as a HOLD/SELL indicator. If stock breaks into a new box as RSI(2) is peaking, I would HOLD it longer or give it more room to wiggle. If a stock hasn't broken into a new box, I would SELL.
I hope this helps.
MAY THE TRADE BE WITH YOU.
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Noahedwinbeach2
135 posts
msg #27969
- Ignore Noahedwinbeach2 |
8/23/2003 1:20:52 AM
Darvis made millions with his system so I will use his system instead of trying to refine it. There is always a way for us to look back at a stock to see how we could have made more money with it. The fact is that is hindsite knowledge and stocks don't always act like we want them to therefore I will stick with his system and not use indicators to decide when to buy and sell. I just updated my site, and at the bottom added 5 stocks that I have boxed.
Volume was an indicator Darvis used. If the demand of a stock rises along with the price that is obviously a good sign. That in combination with his boxes proves safe returns. If a stock is rising on no volume then it may be week and fall. I look at stocks that formed new 26 week highs to find the boxes. Usually I won't buy a stock unless it has broke 2 boxes consecutively.
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lanninb
17 posts
msg #27974
- Ignore lanninb |
8/23/2003 1:11:35 PM
How do you display your high low close values and arrive at the boxes ?
thanks in advance
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TheRumpledOne
6,411 posts
msg #27975
- Ignore TheRumpledOne |
8/23/2003 1:16:35 PM
Noah:
1) It is DARVAS not DarvIs
2) Mankind progresses by building on previous knowledge. Would you prefer bloodletting to modern medicine? Do you ride a horse or drive a car? Do you take the train instead of the plane? Obviously, you use a computer rather than an abacus, stone tablets, pony express, etc... Things change. My personal philosophy can be summed up it two words: WHAT WORKS! Do what works. But what worked one time may not work the second. You must PAY ATTENTION. Sometimes you make minor adjustments, other times dictate a major overhaul. Those who subscribe to the "it was good enough for my daddy so it's good enough for me" theory don't progress - the world passes them by. All you have to do it pull up a www.prophet.net chart with RSI(2) as your ONLY lower indicator and you will see how RSI(2) can improve your success with the Darvas Box Theory.
3) What is the reason you would pass up the opportunity to enter a stock cheaper when you have a indicator that clearly shows a stock is bottoming as it is bottoming rather than in hindsight?
The only reason I am continuing this is so that people can get to see THE OLD AND THE NEW.
Question for you Noah... If Darvas were trading today, do you think he would still be using the telegram?
Hopefully, this debate/discussion will remain civil.
Once again, nice work, Noah. I appreciate your efforts. And feel free to ask if you think I can be of assistance.
MAY THE TRADE BE WITH YOU.
P.S. What filter do you think Darvas would use to select stocks?
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TheRumpledOne
6,411 posts
msg #27977
- Ignore TheRumpledOne |
8/23/2003 2:36:26 PM
Noahedwinbeach2 8/21/2003 10:20:06 PM
"I suggest everyone read Darvis book as well. I do not go directly by what he says, but I use the basic fundamentals of his theory. He liked to use fundamentals with technical because he said a stock is slave to its earning power. That is true but stocks are also slave to supply and demand sense that is what drives a stock so I just go by technical only."
Noahedwinbeach2 8/23/2003 1:20:52 AM
"Darvis made millions with his system so I will use his system instead of trying to refine it."
See Noah, you decided to "refine it" in your first statement.
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Noahedwinbeach2
135 posts
msg #27985
- Ignore Noahedwinbeach2 |
8/23/2003 7:02:13 PM
Please forgive me all mighty God
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Noahedwinbeach2
135 posts
msg #27986
- Ignore Noahedwinbeach2 |
8/23/2003 7:02:46 PM
By the way the highs and lows come from www.cnbc.com
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eyoung
42 posts
msg #27990
- Ignore eyoung |
8/23/2003 8:51:37 PM
noah where is this darvas filter found
eyoung
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Noahedwinbeach2
135 posts
msg #27991
- Ignore Noahedwinbeach2 |
8/23/2003 8:52:36 PM
It isn't found anywhere. You have to learn how to identify box stocks. I use the filter where stocks have broken a new 26 week high.
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