Darvas Boxes (early version) - page 2
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New Version added: 0.3
Thanks for all your efforts- MT needs a good Darvas Box indicator. I think the idea of available timeframes less than 1 day is fantastic, but may I suggest putting your efforts to getting it running properly before getting sidetracked with Fibs, etc. The D-box serves a very specific function-the whole point of Darvas boxes as I understand them is to find a trending market, then buy a breakout of a previous high (or low), then add on to your position with each further high-volume breakout box. As an end-of-day indicator it would be crucial to find the necessary conditions in a currency to apply this indicator in the first place- I dont believe it will work at all just on any pair at any time. But perhaps by being able to use lower time-frames we may find some trending conditions more easily. If you start adding extraneous features that have nothing to do with the Darvas system i believe it will dilute your efforts and reduce the efficacy of your results. Keep your eyes on the prize! If you read
How I Made 2,000,000 in the Stock Market you won't care about making this indicator an all-in-one fib-moving-average thing. Thanks again for all your work.
Cheers,
TatersThank you,
I still improving the original script. Now it works better. It's more real I think
I've added a new version (it's in the first post). If you use this indicator you should download this newer version. It's important.
It works in every time frame.
Thank you again, and tell me if you think you've found something strange.
ign...
New version
Ok, I checked it out, one platform has a built-in Darvas box indicator, they also highlight the stop loss area (bottom of the box), but that's just for visual aid.
One thing though originally this system was developed to trade stocks, not sure if it will be good with currencies, but maybe, interesting to see.
I put it on 4hour GBP/USD charts, what I notice, you get more potential buy/sell setups if you look to go long/short at the top/bottom of an already established box, maybe you can continue doing it, before rules signal a new box coming out?
I put in the chart with the attachment, have a look.
Another idea I got is to factor upper/lower border with fib ratios and maybe compact boxes on lower timeframes (1 hour,4hour) so you get more boxes.Hi,
Thank you for your attention and sugestions for this indicator.
It's true, was developed by N. Darvas for the Stock Market.. but technical analysis is similar as well (or not?).
This indicator needs a big testing... i am seeing queer things that i don't like it...
Right now i have modified the first version and i have just removed TF restriction to work in every TF.
I like very much your idea of use Fibo levels, i'll doing next week (i have a lot of work nowadays).
Another point: Following the papers that I read, the signals are dispacched after the 5th state is reached (in my indicator says Waiting Signal)... But maybe could be more interesting another signals...
Well...
Thank you by your comments,
ign...
Hi Ignacio and others
Thank you for very nice indicator.
I have one question to you...
Have you ever heard about reversing the way of driving Darvas boxes????
I mean have you ever heard about HigdFirst metod and LowFirst Metod....???
If price brakes lover border of darxa box the next darvas box should be drawn according to LowFirst Metod....
If price brakes higher border of darxa box the next darvas box should be drawn according to High First Metod....
It is especially useful in markets where you can earn by selling and buying...
Can you make also such version of your indicator which will draw boxes according to HigdFirst metod and LowFirst Metod simultaneously????
I am using darva boxes since some time and I am happy of them. I am actually drawing them manualy un my charts acording to the way I described above. If you could change little bit your indicator I would be very happy ?? and will use it with pleasure
Govinda...
Hi Ignacio and others
Thank you for very nice indicator.
I have one question to you...
Have you ever heard about reversing the way of driving Darvas boxes????
I mean have you ever heard about HigdFirst metod and LowFirst Metod....???
If price brakes lover border of darxa box the next darvas box should be drawn according to LowFirst Metod....
If price brakes higher border of darxa box the next darvas box should be drawn according to High First Metod....
It is especially useful in markets where you can earn by selling and buying...
Can you make also such version of your indicator which will draw boxes according to HigdFirst metod and LowFirst Metod simultaneously????
I am using darva boxes since some time and I am happy of them. I am actually drawing them manualy un my charts acording to the way I described above. If you could change little bit your indicator I would be very happy ?? and will use it with pleasure
Govinda...hi Govinda,
This algorithm is the HighFirst. I tried to do this indicator using this method but i am not sure bout results...
Another problem that I have is: Where to start? in which bar? If you move the start bar to the next one... maybe the boxes are diferents...
if you have suggestions are welcome
cheers
ign...
Thanks Ignacio
On my side the bigest problem is that I know almost nothing about programming and may not understand the obstacles programmer may have... sorry
There only thing I can do is that I can describe in details how I am drawing my Darvas boxes manualy....
It is not complicated...
1) The most important rule in the technique I am using is that: finished DARVA BOX can only be broken by CLOSE PRICE. (As I could see your indicator does not require closing abow / below finished current BOX to start looking for a next BOX...)
2) When the price closes above the current BOX I am starting to count the bars according to HighFirst method to find next box
3) When the price closes below the current BOX I am starting to count the bars according to LowFirst method to find next box
For me the beginning point of my counting is the first fractal after significant move. If that move was UP move then I am using HighFirst Metod and vice versa.
What do you think Ignacio is it possible to make the indicator working in the way I described?
govinda
Ok, I checked it out, one platform has a built-in Darvas box indicator, they also highlight the stop loss area (bottom of the box), but that's just for visual aid.
One thing though originally this system was developed to trade stocks, not sure if it will be good with currencies, but maybe, interesting to see.
I put it on 4hour GBP/USD charts, what I notice, you get more potential buy/sell setups if you look to go long/short at the top/bottom of an already established box, maybe you can continue doing it, before rules signal a new box coming out?
I put in the chart with the attachment, have a look.
Another idea I got is to factor upper/lower border with fib ratios and maybe compact boxes on lower timeframes (1 hour,4hour) so you get more boxes.As always, one method does not suit all situations, this one is devastating.
And in 5min timeframe, box cover the candle perferctly, cannot use this method.
Whatr are you guys doing????!!?!?
This is not how Darvas Box works..
Get the book from Amazon.com
or go here:
http://www.gerryco.com/tech/darvas.html
Whatr are you guys doing????!!?!?
This is not how Darvas Box works..
Get the book from Amazon.com
or go here:
http://www.gerryco.com/tech/darvas.htmlindicator updated
You really should simply read the book
Your indicator still is wrong. Your indicator is much more complicated than the darvas box. You do not just buy when it hits the top and sell when it hits the bottom. It looks more like the perfect whiplash indicator backtestest; broker approved for churning.
It is a trend following tool that Darvas had to use in his day because of the high commission fees. $100 per trade! Imagine that. So in order to made real money he had to find a way to invest that did not require alot of daily transactions.
Look at a chart on EUR/USD on May, June, July, August and September: That is a really Darvas Box. Not some bogus indicator that averages price. It is simply a chart pattern lt is almost just like the Parabolic Curve Trend Pattern. It highlights an accelerating market, and some sites are saying that is occurs near the end of a trend, BUT where else can it occur except after the trend starts, because they do not happen at the END of the trend but near the end. And this is not entirely true. It can happen at the beginning of a trend too.
Chart Patterns and a good trend following tool or system go hand and hand. Some people simply use tools like volume. Some, the Darvas Box. Both win and loss money. You needs to determine how much you will lose, and then follow the trend as they break resistance and previous highs. that is what the Darvas box is all about, and most trend following systems. There are better ways too.
The Darvas Box simply waits for three lows that are lower than the other and then a strong candle bullish candle. Or else it is not a darvas box. In stocks you have thousands of stocks to play with in finding this pattern; however, in the currency market most of us only trade the 4 pairs. That means that this pattern will rarely if ever happen except on smaller time frames.
Guys, that's very interesting but did anybody read that book?
If the answer is "yes", please explain the whole strategy? I mean how he defined profit targets, what TF did he use, where are placed the stops?
BEST REGARDS