This MILLIONAIRE Trader Created This Trading Strategy (Darvas Box)

this is the legendary Trader Nicolas Darvis and this is the Darvis box you know his trading strategy now you may be wondering who the hell is Nicholas Darvis well Nicholas Davis was a successful stock Trader and investor who became famous for his trading success in the early 1950s he was born in Hungary in 1920 and moved to Turkey in 1943. Darvis initially worked as a professional dancer touring the world with his sister as part of the Darvis and Julia danced him in the early 1950s Darvis began trading stocks based on his own unique approach he developed a method of technical analysis that involved identifying stocks with strong price momentum in trading them based on support and resistance support and resistance support and resistance support and resistance yeah that support and resistance he used the strategy of buying stocks that were breaking out of their 52-week highs and setting tight losses in order to minimize risk now after becoming super successful and making millions of dollars in a stock market he chronicled his experiences and strategies in his book titled how I made two million dollars in the stock market now you may be thinking how did he do it how does the Darvis box strategy work well the original Darvis box strategy is a swinging trading strategy so this is the daily charge of Amazon but don't worry you're not going to be tied to the Daily time frame because this strategy Works in almost all markets and in all time frames now how do you draw a Darvis box the first thing you need to look for is a new 52-week high a 52-week high is the highest price point reached by the market in the last 52 weeks in this particular example this is the 52-week high after the high is created price needs to stay below that high and to not break and close above it for the next three candles at least [Music] after three candles have passed without breaking and closing above it that becomes the high of the box now for the law of the Box you just need to identify a swing low that was created after the high was established but what is a swing low well a swing low is basically the lowest price point that hasn't been broken by at least three preceding candles in this particular example this is the swing low we're going to draw a horizontal line here to establish the law of the box there you go this is the Darvis box now to take a trade based off of this you just wait for the price to break and close above the box like it did on this candle and then you're going to confirm that there is sufficient volume in the market to push the price upwards and then you enter the trade now this is one of the traits that Nicholas Darvis took in the early 1950s as you can see here this is the Darvis box this is the high of the box and this is the law of the box once the price broke and closed above the Box darvas entered a trade right here his stop loss which was inside the Box got triggered and sadly he lost the trade he then re-entered the trade at point B and took additional positions at points E and F he exited all the positions at Point J making a total profit of over 100 which is really outstanding now as mentioned earlier the modern version of this strategy that I'm gonna show you can be used in almost all markets and in all time frames I'm gonna show you how to set it up on trading view soon 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a day now the first indicator that we're gonna add is one that's going to be used to draw the Darvis box best for us you didn't think we're gonna do all that work manually did you click here then type in Darvis box Theory select this one by John then type in simple to Ema cloud and select this one by alignator lastly type in water atar explosion this one by Cheyenne km double click on the Darvis box indicator on the inputs tab change the lookbook range for all these time frames to 5. then here you're going to change the Border style to solid you're going to increase the width a little bit and reduce the background colors opacity to zero percent and you're going to do the same here [Music] after that click ok then you're going to double click on the EMA Cloud indicator on the inputs tab change slow EMA to 200. and the fast EMA 260. and then click ok then you're going to double click on the water at our explosion on the style tab change the explosion lines color to white and increase the opacity to 100 percent then you're gonna change the dead Zone's color to Yellow and increase its opacity to 100 then here you're gonna change the display style to lines this green line of the two EMA Cloud indicator is a 60 period EMA it reacts faster to price changes and is going to be used to identify short-term Trends in the market this red line is a 200 period EMA that reacts slower to price changes so it's going to be used to identify long-term trends trading only when the price is above or below both of these lines ensures that not only are we trading in the direction of the long-term Trend but also in the direction of the short-term Trend the water atar indicator is a volume indicator and we're going to be using it to confirm that there is enough volume in the market to push the price in the direction of our trade the darvos Box indicator is going to give us the entry signals when it prints a green Darvis box like this one this is a signal to buy and when it prints a red darvos box like this one this is a signal to cell now how do we trade using this strategy well here are the conditions to take a long trade first the green line of the two EMA Cloud should be above the red line and the price you'd be trading above it this indicates a strong bullish Trend second the Darvis box indicator should print a green Darvis box and the price must break in close above the box so like here you can see that this is a complete Darvis box and on this candle price broke and closed above the Box lastly at the time the price breaks and closes above the Box the histogram of the water atar explosion should be colored dark or bright green to indicate the presence of bullish momentum it should also be above this white line as well as above this yellow line all our entry conditions are met on this candle so we're gonna enter a long trade the stop loss is gonna go somewhere in the middle of the box and for the take profit we're gonna set it at 2 times the risk we let the trade run and take profit for short trades we're just going to reverse all the conditions so first the red line of the two EMA Cloud should be above the green line and the price should be trading below it this indicates a strong bearish Trend second the Darvis box indicator should print a red Darvis box and the price must break in close below the box so like here you can see that this is a complete Davos box and on this candle price broke and closed below the Box lastly at the time the price breaks and closes below the Box the histogram of the water atar explosion should be colored red or orange to indicate the presence of bearish momentum it should also be above this white line as well as above this yellow line all the entry conditions are met on this candle so we're gonna enter a short trade the stop loss gonna go somewhere in the middle of the Davos box and for the tech profit we're gonna set it at 2 times the risk we let this trade run and it hits take profit Nicholas Darvis recognized that this trading strategy would not work well during ranging markets so to address this he focused on trading stocks with increasing volume and Rising earnings which were more likely to have strong bullish Trends he believed that trading with the trend was key to his success what do you guys think of this strategy let us know in the comment section below that's been used with this video hope you found some value if you did hit the like button below and consider subscribing to stay tuned thanks for watching and I'll see you guys next time

Channel: PineTrades

Views: 11,673

Keywords: scalping trading strategy, forex trading, trading forex, forex, crypto trading, trading strategy, investing, day trading, swing trading, profitable trading strategy, best scalping trading strategy, forex scalping strategy, best scalping strategy forex, Profitable Buy Sell Indicator, buy sell indicator tradingview, hankotrade, nicolas darvas, darvas box, darvas box trading strategy

Id: AjkFK8NdUFY

Length: 9min 57sec (597 seconds)

Published: Sat Mar 11 2023