About Darvas :
In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business.
Darvas turned a $36,000 investment into more than $2.25 million in a three-year period.
1/n
It was on a two-year tour of the world that he initially developed his ‘Darvas Box’ method of screening stocks – a method of picking stocks based on the stock’s price and volume .
Trading Style :
TREND FOLLOWING MOMENTUM TRADING
📌Darvas was tracking stocks only making new high
Trading stocks breaking 2-3 year high.
📌But 52-week high is mostly tracked for this theory
📌Emphasized very much on Huge volume Breakouts
A typical Darvas Box Chart : 3/n
Rules to Follow :
Stock Price Should be within 15 to 20 % of Highs
Overall trend of the stocks should be up and greater than 200 ema
Preferably 100% up then the 52 week low
Look for Industry Leaders , with High Growth
4/n
How to Trade ?
📌Whenever the stocks breaks the 52 week Keep them on watchlist
📌Look that The next 3 candles should not break the 52 week high and fall below
📌The high point will be called as CEILING
📌Look for Volume Breakout too or Breakout should be Above Average volume 4/n
Floor: Stoploss
📌Floor is basically the a small reversal point or bottom the stock is trying to make.
📌Floor is generally the stoploss of the trade
📌The bigger the range the bigger the stoploss and higher the Risk
Example : #ITC
After 52 week High , mark the Top: Ceiling
After a small Reversal mark the Bottom : Floor
Enter As soon as the 52 week high breaks with stoploss 6/n
#RADICO#MANINFRA
✅Enter When 52 Week High is Broken , and Keep Adding as and when the box formation takes place .
🛑Keep Shifting the stoploss to next Box lows 7/n
Parameters checked : #MINDAIND #kotakbank : Not valid Box , as stock is not breaking the 52 week high only the range breakout is happening
Also Restrict yourself to growth stocks that is midcaps and smallcaps 9/n
On monthly timeframe :
Riding the Winners #infy#tatamotors
He focussed on probabilty and riding the trend till a reversal sign is seen .
Small Stops are a price to pay for multibagger returns 10/n
Time and % Differece of boxes :
There isnt any fixed % of difference from ceiling to floor mentioned any where
There also isnt any time frame mentioned how much the sideways trend or box formatiom will take place
There could be any combinations of boxes and there sizes 11/n
Short Ranges : IRCTC
Long Consolidation : BIRLASOFT
Short Range , Short Time : JINDWORLD
( Old Examples ) 12/n
Trailing Stop and Pyramiding 1. Buy if price closes above Ceiling and put a stop-loss below Floor price. 2. Add Small Qtys as breakout happens and one can pyramid in winners and further breakouts 3. Ride the winner till you get Stopped 4. Reenter if stock regains 52 wk high 13/
3. After the breakout of the box, if price moves higher and forms another box, then trail stop-loss to the Floor price of the newly formed box and keep trailing on each subsequent floor.
4.Exit the trade when price goes below the floor price of the recent box. 14/n
STOCK FUNDAMENTALS
Buy companies whose growth & earnings prospects look highly promising
Overall Market trend should be bullish
Stocks should be outperforming the general Market and should be leader
Breakout should be always on higher volume
Prefer Midcaps and Smallcaps
15/n
Swing Trading Mentorship :
✅Mentorship starting in July on weekends only with recording
✅Covering Pure Price Action Relative Strength, Risk Management Moving Average and How to find Super Stocks
Whatsapp : wa.link/si4jn4
The MARS Chartink Dashboard by @finallynitin
⦿ MARS widget for indices
⦿ Top 50 stocks as per MARS
⦿ MARS 20 - a shorter-term variant based on 20-day MA
⦿ MARS 200 - a longer-term variant based on 200-day MA
⦿ % of stocks above/below 50-day MA
The #1 Tradingview Indicator for Catching Reversals in 2025
A Thread🧵
We use ATR to calculate the volatility of stock
What Does ATR Measure?
ATR calculates the average of the True Range (TR)over a specified number of periods (usually 14).
Its used for
Position Sizing:
Stop-Loss Placement:
Breakout Confirmation
Reversal Confirmation
Confused how to exit stocks in swing trading ?
A thread 🧵on 4 ways to exit stocks
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There are multiple ways to exit a stock 1. 7-8% Stoploss 2. 21 EMA tsl 3. 50% exit on RR and 50% on Tsl 4. Using Swing lows as stoploss
I use majorly use 1st and 2nd
1. 7-8% Stoploss
Description: You set a fixed stop-loss percentage, typically 7-8% below your entry price.
If the stock's price drops to this level, you exit the trade to minimize losses.
Losses work exponentially against you .
A 10% drop requires 12.5% breakeven
A 20% drop requires 25% breakeven
Relative Strength vs Relative Strength Index
Tool to level up your Trading 🔥
A Thread 🧵
Kindly Retweet and 🩷
Relative Strength :
¢Relative strength is a strategy used in momentum investing and in identifying value stocks.
¢ It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
Indicator Values :
💠0 line that helps to differentiate between underperformer and outperformer
💠>1 Outperforming the markets
💠<0 Underperforming the markets
7 less known Tradingview Indicators that all traders should know about
A thread🧵
1. @TraderLion_ Enhanced Volume Indicator
Lime Green Bars Suggests day when the stocks closes near the days high and volume greater than past 10 down volume days Suggesting Institutional Accumulation
Modified version of Bollinger Bands
When price is written in blue, volatility overall is falling. When the outer bands start to fatten up in blue, a contraction signal is forming. Works with any length of your choosing tradingview.com/script/fXnublK…