Basically, a trend trader will like to know the market direction and also signals to buy (or sell) whenever he (she) wishes to take action. Unlike intraday trading, trend trading is easier as it is not necessary to check price movements in the day when market is open. Trend trading rely on end-of-day price results.
Disclaimer: This is for education only and not a proposal to buy or sell shares.
The Darvas Box trading strategy
This is a set of simple methods that a beginner to stock trading can use easily. This is the Darvas Box. We draw a box from the last pivot high to the last pivot low (see blue box in chart). The box indicates to us the last highest resistance and the last lowest support respectively. Any price bar that violates the top is a signal to buy. Of course it must first qualify the trend indicator as uptrending.
- Indicator to check bullish or bearish move – Momentum (10)
- Buy/sell signal – Darvas Box