If you are looking for a reliable and effective technical indicator for your MetaTrader 4 platform, then you should consider using the Darvas Boxes nmc Indicator. This powerful indicator can help you identify trend reversals and breakouts with high accuracy and confidence.
In this article, we will take a closer look at the Darvas Boxes nmc Indicator mt4 and explore its key features, benefits, and applications. We will also provide some practical tips and strategies on how to use this indicator to improve your trading performance and profitability.
What is the Darvas Boxes nmc Indicator?
The Darvas Boxes nmc Indicator mt4 is a technical analysis tool that is designed to identify and visualize the price action patterns that were popularized by Nicolas Darvas, a Hungarian-American dancer, and self-taught trader. Darvas developed a unique trading method that focused on buying forex that showed strong upward momentum and avoiding those that showed weakness or consolidation.
Darvas believed that the market was like a “box” that moved in a horizontal range until it broke out in either direction. He used a simple box pattern to visualize this price action, where the top and bottom of the box represented the resistance and support levels, respectively. He then waited for the forex to break out of the box and ride the trend until it showed signs of weakness or a new consolidation phase.
The Darvas Boxes nmc Indicator is based on this concept and uses a series of boxes to identify the key levels of support and resistance and their respective breakouts. The indicator plots the boxes as green and red rectangles, where green boxes represent bullish breakouts and red boxes represent bearish breakouts.
The Darvas Boxes nmc Indicator also includes other useful features, such as:
- Customizable box size and sensitivity parameters
- Sound and visual alerts for new box formations and breakouts
- Multiple time frame analysis
- Compatibility with other technical indicators and trading systems
How to Use the Darvas Boxes nmc Indicator?
The Darvas Boxes nmc Indicator can be used in various ways to improve your trading performance and profitability. Here are some practical tips and strategies on how to use this indicator effectively:
Identify the Key Levels of Support and Resistance
The first step in using the Darvas Boxes nmc Indicator is to identify the key levels of support and resistance in the market. You can do this by adjusting the box size and sensitivity parameters to match the price action and volatility of the instrument you are trading.
For example, if you are trading a highly volatile currency pair like GBP/JPY, you may need to increase the box size and sensitivity to capture the larger price movements and breakouts.
Once you have identified the key levels of support and resistance, you can use the Darvas Boxes nmc Indicator to plot the boxes and visualize the price action patterns. The green boxes represent bullish breakouts, where the price breaks above the resistance level, and the red boxes represent bearish breakouts, where the price breaks below the support level.
Wait for the Breakouts and Ride the Trend
The next step in using the Darvas Boxes nmc Indicator mt4 is to wait for the breakouts and ride the trend until it shows signs of weakness or a new consolidation phase. This means that you should only enter a trade when the price breaks out of the box and confirms the new trend direction.
For example, if you see a green box formation and a bullish breakout, you should wait for the price to retest the new support level and then enter a long position with a stop loss below the previous support. You can use the Darvas Boxes nmc to set your profit targets and trailing stops based on the size and duration of the trend.
On the other hand, if you see a red box formation and a bearish breakout, you should wait for the price to retest the new resistance level and then enter a short position with a stop loss above the previous resistance. You can use the Darvas Boxes nmc Indicator to set your profit targets and trailing stops based on the size and duration of the trend.
Combine with Other Technical Indicators and Trading Systems
The Darvas Boxes nmc Indicator mt4 can also be combined with other technical indicators and trading systems to increase its effectiveness and reliability. For example, you can use the indicator in conjunction with:
Moving averages to confirm the trend direction and filter out false signals
Oscillators like the Relative Strength Index (RSI) and Stochastic to identify overbought and oversold conditions
Fibonacci retracement levels to set your profit targets and stop losses based on the key support and resistance levels
You can also use the Darvas Boxes nmc Indicator mt5 in different time frames to identify the long-term and short-term trends and adjust your trading strategy accordingly. For example, you can use the indicator in the daily chart to identify the overall trend direction and then switch to the 4-hour chart to identify the entry and exit points.
Darvas Boxes nmc Indicator Settings
- Darvas Mode: 3
- Pivot Strength: 3
- Rolling Period: 1
- Box Width: 2
- Boxes Mode: 1
- Channel Mode: 0
- Pivots Mode: 1
- Ghost Boxes Mode: 0
- Signal Mode: 1
Darvas Boxes nmc Indicator MT4 Free Download
Conclusion
The Darvas Boxes nmc Indicator is a powerful and versatile technical analysis tool that can help you identify trend reversals and breakouts with high accuracy and confidence. By using the key levels of support and resistance and the visual boxes, you can visualize the price action patterns and enter trades with clear and objective criteria.
To use the Darvas Boxes nmc Indicator MT4 effectively, you should adjust the box size and sensitivity parameters to match the volatility and price action of the instrument you are trading. You should also wait for the breakouts and ride the trend until it shows signs of weakness or a new consolidation phase. Finally, you can combine the indicator with other technical indicators and trading systems to increase its effectiveness and reliability.
Overall, the Darvas Boxes nmc Indicator MT4 is a valuable addition to your trading toolbox and can help you achieve your trading goals and objectives.
