Wednesday, June 02, 2010

Swing Trader - NetApp Inc. (Public, NASDAQ:NTAP)

NTAP is forming a bull flag on the daily (Darvis Box on the 15 min. timeframe below) following last week's earnings gap. The earnings gap accompanied by the volume spike foreshadows higher prices. Swing traders can target full extension on the daily timeframe above when price successfully breaks the highs.



What is the Darvis Box?
Trading strategy developed by Nicholas Darvas in 1956-57. Look for stocks breaking out of a base on huge volume. After the BO, price consolidates in a very narrow range - Darvis box (price/volume contraction ahead of expansion). As price breaks out of the box, enter the trade. Darvis made $2M in approx 18 months using this simple strategy.

2 comments:

Jim said...

Hey Jamie,

The Darvis Box - I have not heard that term in awhile... one of my favorite reads.

Jamie said...

Hey Jim,

A thoroughly engaging book. I loved his tenacity and determination to come up with a winning trading strategy.