Hello everyone,
Here are the video recordings for the Trading Lessons on New 78 Day High with the Darvas Box Breakout.
2019/06/15 Trading Lesson: New 78 Day High and Darvas Box Breakout
https://youtu.be/oSQMne65bdE
2019/06/21 Trading Lesson: N78 Day High and Nicolas Darvas Theory Part 01
2019/06/21 Trading Lesson: N78 Day High and Nicolas Darvas Theory Part 02
https://youtu.be/tiKbT0-4i24
I just would like to add 2 important considerations here:
- A combination of New 78 Day High with Darvas B15 associated with 400% increase in volume and a gap up is a potent combination of a winning trade. Darvas B15 here refers to the filter we created in stockfetcher.com which identifies Darvas Boxes boundaries and breakouts to subsequent new highs. The B15, means stocks priced below $15.00.Examples:ENPH - 2019/05/01
http://charts.stockfetcher.com/sfchart/60PqiUdvoG.png ARWR - 2019/05/21
http://charts.stockfetcher.com/sfchart/n5w9IXygjI.png - Potent Darvas Box formation follows the following pattern:
Wide Base, Reduced Boxes, longer pop.
The stock starts with a Wide Base (Longer consolidation period with deeper price fluctuation). Once it starts to break out from that wide base, next upward Darvas boxes are reduced in sizes, meaning the range is getting smaller. Subsequent breakout from this or these smaller ranges with a huge volume will have a longer pop to follow.
Example: ARWR
The Base:
http://charts.stockfetcher.com/sfchart/Gp1Nqk4kpE.png
The Reduced Boxes
http://charts.stockfetcher.com/sfchart/4G6qmpJnXw.png
The longer Pop
http://charts.stockfetcher.com/sfchart/pxLoM2fw1J.png
New Base is formed again
http://charts.stockfetcher.com/sfchart/aM69ltiwRD.png
http://charts.stockfetcher.com/sfchart/CR9f7ekpxN.png
Reduced Box following the Base followed with a Gap-up
http://charts.stockfetcher.com/sfchart/RV20Ewzukf.png
Enjoy studying guys.
Cheers and have a good one.
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