Our Trend Following Charts and Analysis

Our #TheSTRAT Charts and Analysis

Let's compare our system to Darvas Box System and Turtle Trend Following Method.

Darvas Box System is all about drawing boxes at the 52-week high price level. Believe it or not, his method was a  trend following strategy in its true essence

Darvas Stock selection: He picked out the best stocks to trade;

• Look for stocks that have performed 100% rise in 52 weeks. (They have to be super hot stocks in order to have these type of performance.)

Darvas method of trend following;

• Start drawing boxes as they break out and participate in the trade. Stay in the trade and keep holding till they fail to stay above the predetermined immediate box level.
• He had started building a bigger position as they were breaking out a new level. (like pyramid structure)
• He had also re-entered the trade of these so-called hot stocks when they stop going down at the previous box level and start acting well at the support level.

What have we implemented from Darvas Box method?

Instead of the box; we have started drawing a support and resistance line at the any given stage of stock; not just at the 52 week high. We concluded distinct medium term and long term trend line from similar to Darvas style box.

We at the lucid trend, have further implemented a turtle style momentum to determine our short-term direction.

To make a lot more sense of what we have developed we have referred the outlook of the stock to weather outlook.

We are the probably only trend following system which has come to the conclusion of a pullback as well as stock bottoming out.