Darvas Boxes (early version)

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Hi,

I have just developed an early version of a Darvas Box indicator.

This indicator is my first one... so, critics and comments are welcome

Thank you all

ign...

Attachement: This is the version 0.3 with a big bug fix. Download this one if you are using the previous version.

Files:
darvasboxes.mq4  10 kb
 
ignacio:
Hi,

I have just developed an early version of a Darvas Box indicator.

It works only in TF=D1 (but can be adapted to any TF)

This indicator is my first one... so, critics and comments are welcome

Thank you all

ign...

Please tell more in detail that it shows.

What it this zones?

 
reaper:
Please tell more in detail that it shows. What it this zones?

Hi,

well i'm not so good with the english... maybe you should read some articles to know more about Nicolas Darvas and his metod.

I have developed this based on this article http://www.gerryco.com/tech/darvas.html

Basically "this zones" tell us that the price is waiting to take a direction. If we see a High above the Box Top, we get a buy signal. And if we see a Low bellow the Box bottom we get a Sell signal.

This indicator basically must to run every day after the en of session but isn't developed yet... I'll try to doing in few days.

Good luck

ign...

pd: sorry if I write like "Tarzan"

 

ill look into it, looks interesting

 

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.

Files:
darvas1.gif  20 kb
 

Yeah, actually looking at the history now, could be a good idea to use in as a channel setup, and sell weakness, buy strength, you could use it with a trend reversal indicator and something more discretionary, like candlestick patterns to identify good setups.

Id say just trading breakout doesn't look promising on currencies.

 
 

I found the indicator, perhaps with both combined we can make a nice one.

This one will show up on all time frames

Putting both indicators on the chart, yours is very nice, I know I have a completed version of the expert somewhere, your version may make it trade correctly.

The Fib idea may also improve the indicator.

Files:
darvas_boxes.mq4  4 kb
 
Foreverold:
I found the indicator, perhaps with both combined we can make a nice one.

This one will show up on all time frames

Putting both indicators on the chart, yours is very nice, I know I have a completed version of the expert somewhere, your version may make it trade correctly.

The Fib idea may also improve the indicator.

Hi

I've read your indicator... it's a little bit different from the algorithm that i have used.. Darvas algorithm needs at least 2 periods to confirm box top and box bottom and even when he enters in 5th state needs a confirmation.

I've attached also in my previous post a version that doesn't require big timeframes.

I'll submit a new version with fibo level, its a good idea i think. and also, ill add some arrows when a signal is dispached.

The idea behind the darvas boxes is find bands where the market is not defined and have no trend.

Thank you by your suggestions.

ign...

 

if you could, try implement and sound, when the arow apears and in witch timeframe.

Regards like always

 

Keep up the good work!

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,

Taters

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