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Darvas Box Theory

Has anyone created a scan after the Darvas Box Theory? If so what is it? I have always been a fan of price and volume and breakouts but have used pivot points mostly. I'm interested in trying out the boxes for breakouts. Thanks.......

Best Answers

  • gordgord admin
    Answer ✓
    @LiveForCharts there was an old thread in the scan archives that discusses this issue, I suggest you start there, link below. Then post what you've developed so far in your scan and what part you are having trouble with.
  • markdmarkd mod
    edited March 2015 Answer ✓
    Darvas had a fundamental filter, not just technical ones, including that stocks should be newer companies in emerging and/or leading industries. The method suggested in the pdf to screen on other sites for fundamentals sounds helpful. This scan doesn't pick up fundamentals - you would add your own groups from the Sectors and Industries list (or use an "or" statement with a list of symbols you found on the fundamental sites). Also, the 5 and 10 per cent parameters in this scan are arbitrary. So, this scan isn't definitive, but it pulls up some good charts, at least some of which ought to look like Darvas stocks:

    [type = stock]

    // leading industries (you fill this in)

    // and [[group is ?] or [group is ?] or [etc...]]

    // market leading technical strength

    and [SCTR > 90]

    // in an uptrend (just in case the SCTR rank is strength in a bear market)
    // 200 and 50 MAs rising and 50 above 200

    and [sma(200,close) > 20 days ago sma(200, close)]
    and [sma(50, close) > 10 days ago sma(50, close)]
    and [sma(50,close) > sma(200,close)]

    // made new yearly high in the last month or less

    and [Upper Price Chan(21) = Upper Price Chan(251)]

    // recent decline greater than 5 per cent of recent best high

    and [min(15, low) < max(21, high)*.95]

    // recent decline less than 10 per cent from best high

    and [min(15,low) > max(21,high) *.9]

    Note, this scan picks up possible set ups, not signals. The Darvas signal would be a close above Upper Price Chan(251). Darvas also required that the cross to new highs be accomplished on strong volume, so keep that in mind.


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