This is not a recommendation to buy or sell any of the stocks discussed on this blog. Due diligence is your responsibility. If you need professional investment advice then find a professional.
With the new column added this weekend the total of Darvas Bottom formulas now stands at six. I think this is probably more than enough. Each seems to be independent enough and they cover a range of time frames.
I am not using Darvas Box stuff in the usual manner but instead am using the box bottom only to look for entry signals. If price is below the box bottom and then moves above the box bottom a signal is generated. Without all the noise it is essentially buying when there is a move above recent lows. A stop loss can be placed either just below or at the box bottom which generated the signal.
After looking through a number of charts with all those lines on them it seems that it is best to wait for a series of signals. One by itself may be alright, but once all of the box bottoms have been cleared the signal seems to be stronger. A chart example of ALU follows. Yes, it is cherry picked as an illustration and there are many times that this situation does not work out. I still think though that it is a pattern worth looking for in the future.
The other potential to explore is to use a penetration below the heavy orange line in the top panel as an exit from a position. You decide: Nutshell or Nut job?
Thank you for your time.
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