You will never walk alone #SuperChartz

22 set 2023

Key Levels:

Support: 1000

Resistance: 1130, 1190 1230

Write-up:

Darvas Box breakout trading is a trading strategy developed by Nicolas Darvas, a dancer turned investor, in the 1950s. It focuses on identifying and trading stocks or assets that break out of a predefined price range or "box."

1. **Simple and Objective:** Darvas Box trading is straightforward to understand and implement. It relies on clear rules based on price movement, making it suitable for both beginners and experienced traders.

2. **Trend Following:** It helps traders identify and follow strong trends in the market. When a stock breaks out of its box, it often indicates the start of a significant trend, allowing traders to ride the momentum.

3. **Risk Management:** The strategy includes a predefined stop-loss level, typically set just below the bottom of the box. This disciplined approach to risk management helps traders limit potential losses.

4. **No Emotion Trading:** By relying on objective criteria (breakout from the box), traders can avoid emotional decision-making, which often leads to impulsive trades.

5. **Volatility Adaptability:** The Darvas Box strategy can be adapted to different time frames and asset classes, making it versatile in various market conditions.

6. **Visualization:** The technique uses a visual representation of price ranges, making it easy to spot potential breakouts and trends.

7. **Long-Term Success:** Nicolas Darvas achieved significant success using this strategy, turning a relatively small investment into a substantial fortune. His story serves as inspiration for traders.

8. **Scan and Screen Stocks:** Traders can use scanning and screening tools to identify stocks that are currently in a Darvas Box pattern, saving time in research.

9. **Exit Signals:** While the strategy focuses on entry points, it also provides guidelines for exiting positions, often based on the stock falling back into the box or breaking the stop-loss level.

10. **Continuous Learning:** Like any trading strategy, Darvas Box trading requires continuous learning and adaptation to changing market conditions. Traders need to refine their skills over time.

Remember that while Darvas Box breakout trading has its advantages, no trading strategy is foolproof. It's essential to combine it with proper risk management and a well-thought-out trading plan to maximize its effectiveness and minimize potential losses. Additionally, always be aware of the inherent risks in trading and consider seeking advice from financial professionals.