No registration required! (Why?)

Darvas Boxes


I have always loved Darvas boxes ( if you don't know what they are google it) They work like a charm if the market is trending. Some simple rules I am looking for on a Darvas Boxes is....

1) Trade a break in the direction of the 30 min trend, interpreted via a 10 period EMA.
2) Don't take the first down break if the previous box was a bullish break, and visa versa.
3) Stops are placed at the other end of the box, and moved as the box falls rises or falls.

There are IMHO better than SAR's at placing stops.


Click image for original size
No Description Entered
blue,

I have trade the euro fx, yen, and pound futures for longer than I have the ES. When I found out that prices move the spot market first and are liquid 24/5.5 I moved my trading from fx futures to the real fx market. Its not that it trends better I just have different markets that don't move with each other. Like ES=ZB, CL, NG, YM, NQ, TF, there all perrty much move with each other either together or neg. Where as in the FX the yen could be losing against the dollar while the eur, pound, kwiw are going up against the dollar. Where with swing trading in futures if I am long the bonds and short the ES if I am wrong on one I am wrong on both. Or long oil short ES I am not really going to go any where. The easist trading I have ever done is in FX, buy strong sell weak, basically like stock sector roation but with futures tax advantage.


Click image for original size
No Description Entered



+1.25 today.
I have found a free darvas indicator for tradestation if anyone is interested.
I'm interested, Tom.
?link?

Tnx.
Will try to attach the indicator here if I figure out how.
quote:
Originally posted by CharterJoe

blue,

I have trade the euro fx, yen, and pound futures for longer than I have the ES. When I found out that prices move the spot market first and are liquid 24/5.5 I moved my trading from fx futures to the real fx market. Its not that it trends better I just have different markets that don't move with each other. Like ES=ZB, CL, NG, YM, NQ, TF, there all perrty much move with each other either together or neg. Where as in the FX the yen could be losing against the dollar while the eur, pound, kwiw are going up against the dollar. Where with swing trading in futures if I am long the bonds and short the ES if I am wrong on one I am wrong on both. Or long oil short ES I am not really going to go any where. The easist trading I have ever done is in FX, buy strong sell weak, basically like stock sector roation but with futures tax advantage.



What I've picked up is:
1. you don't feel FX trends better but you do feel FX "is the easiest trading you've every done".
2.you like that the different pairs are not all positively correlated.
3.you use longer time frames in your FX Darvis analysis which implies your stops and targets are wider (on 5 min boxes).

Two questions, {or is this three?
}

I don't understand the tax advantage (FX over ES)
I'm unclear why its "the easiest trading you've ever done."

You made 37.5 points last week with your ES Darvis. Did your FX trades fare better?

tks,
The tax advantages are the same. As far as it being the easiest.....I heard the same thing for years from other traders you'll just have to open an account and try it yourself. Its easier because when the Euro is in a down move it could last 4 sessions Sydney, Tokyo, London, and New York...where as the ES could only trend for a few hours. Its a totally different market you have to be in it to see it. FX has its days of chop but when it trends it can trend for hours upon hours with no large pullbacks.
I think easy is not a word I should have used. I think "more opportunity" would be a better thing to say.
For those interested in darvas for FX, make sure you put the boxes on a .0001 feed instead of .00001 as the later will give premature entries due to the extra thousandth of cent. kinda like yen going 89.09 vs 89.085, or Euro 1.4799 instead of 1.48001
Thanks CJ!

I understand better now.
Initially you were going to post a Darvis box example for an FX trade.

I'd like to see one if you want to share!
Joe: are you still using Darvas Boxes? There is a draw tool on Ninja Trader.