Darvas Box

Konti na lang, Darna na... Pero in a box.

Darvas Box works according to the basic stock market principle of "Support/Resistance."

During breakouts, the resistance of the box becomes the new support. During breakdowns, the support of the box becomes the new resistance.

Every box you have plotted becomes a reference for future price action.

REMEMBER: Buy on support (if support doesn't break), sell on resistance (if resistance doesn't break). 

Notice how each box identifies the next possible support/resistance when breakout/breakdown occurs?

LC has been trying to break the resistance at 1.21 but already failed twice. Possible short term double top or only building up momentum, waiting for the 50 day MA to cross the 100 day MA convincingly? Wait with discipline and see if the support at 1.10 holds.

MIHB has been consolidating for about a month now and it is nearing the resistance at 18.00.



In the stock market, discipline is key. Don't try to chase prices! 

Wait for the next train... lagi naman may tren sa MRT... kung gusto mo, mag bus ka! Pwede rin lunok ka bato tapos sigaw ka "Darvas!"