|
PureBytes Links
Trading Reference Links
|
P.51. "Within this trend stocks moved in a series of frames, or what I
began to call "boxes".
They would oscillate fairly consistently between a low and a high
point. The area which enclosed this up-and-down movement represented the
box or frame. ...
When the boxes of a stock in which I was interested stood, like a
pyramid, on top of each other, and my stock was in the highest box, I
started to watch it. It could bounce between the top and the bottom of the
box and I was perfectly satisfied. Once I had decided on the dimensions of
the box, the stock could do what it liked, but only within that frame. In
fact, if it did not bounce up and down inside that box I was worried.
No bouncing, no movement, meant it was not a lively stock. And if it
was not a lively stock I was not interested in it because that meant it
would probably not rise dynamically.
... But, of course, the movement the movement I was constantly
watching for was an upward thrust toward the next box. If this occurred I
bought the stock.
... While it stayed within its box, I considered a reaction from 55
to 50 as quite normal. It did not mean the stock was going to fall
back. Just the contrary.
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."
That's pretty much the whole description of the boxes - just support and
resistance levels. There is no secret formula. All I could find about a
percentage below the low price was one statement near the end of the book,
where he bought four stocks and "On each of these stocks I put a stop-loss
order of 10 per cent below buying price." High volume, yes: P.61. "My
selections were high-volume stocks anyway."
This was the 1950's when personal computers were far in the future. Darvas
doesn't even mention charting the stocks by hand.
HHP
=====================
At 04:27 PM 30/09/2003, you wrote:
>Note: forwarded message attached.
>
>
>
>Modulus Financial Engineering
>Trading Edge Newsletter for October 2003
>
>This issue 3-2003: How I Made $2,000,000 In The Stock Market"
>
>The risk of loss in trading can be substantial. You should therefore
>carefully consider whether such trading is suitable for you in
>consideration of your financial condition. In no event shall Modulus
>Financial Engineering be responsible for your trading losses.
>
>Darvas Boxes
>The Astonishing Secret!
>
>Nicholas Darvas was a famous dancer in the 1950s who wrote a book entitled
>How I Made $2,000,000 In The Stock Market. This was a non fiction book.. a
>real, true story about how Mr. Darvas started out with around $20,000 and
>turned it into over $2 million by looking through the finance section of
>newspapers in the evenings and applying his secret formula.
>
>The author describes his investing style as a narrative. He takes you
>through his investing evolution step by step, detailing his actual
>experiences. I must say, his writing style made the book very easy to
>follow and understand. The book emphasizes both technical and fundamental
>criteria, both key ingredients to proper trading and investing.
>
>Not too many people have even heard of Darvas boxes before. You have to
>admit, you probably never heard (or at least used) Darvas boxes either! I
>learned about Darvas boxes recently and have been experimenting with them.
>Today, a client of Modulus FE called to chat with me. He is a famous
>trader, a well respected man and a wonderful client. I tried to pick his
>brains about Darvas boxes. To my amazement, he had never even heard of
>them! Darvas box? What? Never heard of it, son!
>
>I first learned about Darvas boxes when a client of ours requested the
>calculations and graphics to be programmed into our StockChartX ActiveX
>component. It took us more than one go at it, but we did manage to get it
>right after exhausting just about every bit of information we could get
>our hands on. I spent the next three days in solitude just playing with
>these boxes. Yes, they are that amazing! I am now experimenting and back
>testing several systems based solely upon Darvas boxes. I am also
>experimenting with a Darvas scanning system, which scans thousands of
>stocks each day. If this works out then you can expect to see it listed on
>our site as a web service! You just have to try the boxes. They are amazing!!!
>
>How To Use
>Darvas boxes are dynamic trading range boxes that are based upon a
>complicated state machine algorithm. These boxes have two areas. The
>bottom part is a stop loss area and the top part is the break out area.
>When prices break above the top of the box, Mr. Darvas would buy if the
>stock was making new 12 month highs on high volume. He would then stay
>long and add new positions as new boxes developed. When the price of the
>stock dipped below the stop loss section of the box (a percentage of the
>price, just below the bottom of the box), he would take profits and move
>on to something else. If you're wondering what Darvas boxes look like,
>take a peak at our <http://www.investor.net/charts.asp>Investor.net
>charting page. Look at the 2nd picture, on the bottom left.
>
>Formula
>While Darvas boxes may not look too intimidating, I will not hesitate to
>say that Darvas boxes are one of THE most difficult calculations I have
>come across in quite awhile. The entire process is like a complex state
>machine. The Darvas box uses several steps to identify a top and bottom,
>or acceptable trading range. Explaining how these boxes are calculated
>could easily consume several pages. Your best bet would be to purchase the
>book from Amazon, or purchase our StockChartX component (with or without
>the source code) if you want to get started using Darvas boxes right away.
>
>StockChartX Makes It Easy
>You can skip the hurdles and simply call one method of StockChartX:
>ShowDarvasBoxes()
>StockChartX is the only charting component in the world that calculates
>Darvas boxes. Furthermore, there are only three complete end user
>applications in existence that calculate Darvas boxes, and one of them
>does it incorrectly!
>
>To purchase StockChartX, visit
><https://secure.modulusfe.com/order/default.asp#stx4>
>2c0eb4a.jpg
>
><https://secure.modulusfe.com/order/default.asp#stx4>https://secure.modulusfe.com/order
>
>The component comes with our 30 day risk free product guarantee.
>Use it in Excel, VB, VB.net, C#, C++, Delphi or FoxPro for personal use or
>commercial use.
>
>If you already own a license to StockChartX, simply redownload to get the
>latest version, which includes the Darvas boxes. Refer to your original
>invoice email for download instructions.
>
>Or, to get the book <http://www.modulusfe.com/newsletters/TE100103.asp>How
>I Made $2,000,000 In The Stock Market
>
>Yours Truly,
>Tom Wong
>Modulus Financial Engineering
><mailto:t.wong@xxxxxxxxxxxxx>t.wong@xxxxxxxxxxxxx
>MCSD, MCP
>
>You may reprint and redistribute this article so long as the signature,
>copyright and link remain.
>
>Copyright(c) 2003 by <http://www.modulusfe.com>Modulus Financial Engineering
>
>
>
>
>If you received this email in error or would like to unsubscribe, please
><http://www.modulusfe.com/remove.asp>click here. This email is sent in
>accordance with U.S. Bill S.1618 Title III passed by the 105th
>U.S.congress. Please do not reply to this message, as this email supports
>outgoing email only. Copyright 2003 - Modulus Financial Engineering.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/GHeqlB/TM
---------------------------------------------------------------------~->
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
Attachment:
Description: ""
|