Indicator
Breakout
Stocks
Signal
Darvas Box
"Darvas Box" logo
03/09/2025
98
Desktop
Since 03/10/2024
Sales
1
Free installs
5234
"Darvas Box" uploaded image"Darvas Box" uploaded image"Darvas Box" uploaded image"Darvas Box" uploaded image"Darvas Box" uploaded image

Darvas Box Theory

The Darvas Box theory is a trading technique developed by Nicolas Darvas in the 1950s. It's a momentum-based trading strategy that uses price action to identify potential entry and exit points in the market.

How Darvas Box Works

The Darvas Box method involves identifying "boxes" or trading ranges where a stock's price consolidates before breaking out. The key components include:

  1. Price forms a defined trading range (the "box") with clear upper and lower boundaries
  2. The upper boundary represents resistance, while the lower boundary acts as support
  3. A breakout above the box signals a potential buying opportunity
  4. A breakdown below the box can be used as a selling signal

Traders using this technique typically look for stocks showing increasing volume along with the price movement, as this suggests stronger momentum behind the breakout.

History of Darvas Box Theory

Nicolas Darvas (1920-1977) was a rather unusual figure in trading history. Born in Hungary, he was not a professional trader by training but rather a dancer who performed in a ballroom dance duo called "Darvas and Julia" with his half-sister.

While touring worldwide with his dance troupe in the 1950s, Darvas began experimenting with stock trading. His circumstances were unique—he often made investment decisions based only on stock tables in newspapers delivered to him in various cities during his tour.

Darvas developed his box theory through trial and error. Initially, he lost money in the markets but gradually refined his approach. Between 1956 and 1958, he reportedly turned an investment of $10,000 into over $2 million using his box method—an extraordinary feat that gained attention.

In 1960, Darvas published his methods in the book "How I Made $2,000,000 in the Stock Market," which became a classic in trading literature. The book detailed his journey and explained his box theory, bringing this approach to mainstream attention.

What made Darvas's method particularly notable was its simplicity and that it was developed by an outsider to the financial industry. He focused primarily on price action and volume rather than fundamental analysis, an approach that was somewhat novel at the time but has since influenced many technical trading systems.

The Darvas Box technique remains popular among technical traders today, particularly those who follow momentum-based strategies in trending markets.

0.0
Reviews: 0
Customer reviews
No reviews for this product yet. Already tried it? Be the first to tell others!
More from this author
Top-rated
Free
Indicator
ATR
Supertrend
PMAX
It's a combination of two trailing stop loss and the other one is well-known ATR-based SuperTrend.
cBot
VWAP
RSI
Breakout
+5
Investion X V1.9 - Intelligent Filter-Based Trading System
Trading system combining martingale strategy with multi-layered technical analysis and comprehensive protection features
MultiTimeFrame Moving Averages
3 moving averages with different periods and different time frames.
Indicator
Indices
AI
Machine Learning Momentum Index
The Machine Learning Momentum Index (MLMI) represents the next step in oscillator trading.
Indicator
RSI
Indices
StochasticRSI
Stochastic RSI (StochRSI) is a technical indicator used to measure the strength and weakness of the RSI.
Laguerre RSI
Laguerre RSI is based on John EHLERS' Laguerre Filter to avoid the noise of RSI.
Indicator
Breakout
Forex
On Balance Volume
On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator.
KDJ
The KDJ oscillator display consists of 3 lines (K, D and J - hence the name of the display) and 2 levels.
Quantitative Qualitative Estimation
The QQE (Quantitative Qualitative Estimation) Weighted Oscillator improves its original version by weighting the RSI.
Chaikin Money Flow
Chaikin money flow's primary purpose is to distinguish between periods of accumulation and distribution of a security.
Indicator
Indices
Breakout
Stocks
+3
Ichimoku Cloud Indicator
The Ichimoku Cloud is a comprehensive technical analysis system developed by Japanese journalist Goichi Hosoda
cBot
Grid
Martingale
Investion Basic
This is a basic martingale bot without an indicator. For long and short trading options at the same bot.
You may also like
Indicator
Indices
Prop
Stocks
+3
LT_Ind_SRZones
Automatic Support/Resistance zones from swing points.
Indicator
NAS100
NZDUSD
Martingale
+26
Support & Resistance Pro
The Support & Resistance Pro helps traders identify key support and resistance levels for informed trading decisions.
session final
Comprehensive time session indicator
Indicator
NAS100
NZDUSD
Breakout
+18
Free Smart Money Concepts (SMC) from TradingView
Free Smart Money Concepts from TradingView for cTrader: BOS/CHoCH, OB, FVG, liquidity, MTF levels, discount zones.
Indicator
RSI
Breakout
XAUUSD
+6
Multi-Asset Performance Matrix
Visual tool tracking financial assets' % performance across timeframes, highlighting trends with color-coded insights.
Indicator
NAS100
NZDUSD
XAUUSD
+11
SessionOne
Session One is a tool for marking from to, useful if you've set the hours you want to trade
IVB 2.0
IVB 2.0 is an indicator that works on the strategy of imbalance of the maximum volatility box of indices
VegaXLR - Fibonacci Alerts
Alerts you when price touches Fibonacci levels. Stay organized and trade efficiently!
Insider_CumulativeDelta
Robust Cumulative delta,Atr and imbalance indicator.
Indicator
NAS100
Indices
NZDUSD
+9
Volumatic Fair Value Gaps
📊 Detects Fair Value Gaps with lower timeframe volume analysis & clean dashboard 🟢🔴
Indicator
Indices
FVG
Commodities
+4
FAIR VALUE GAP INDICATOR
Pinpoint FVGs, track fills and see mitigation stats — trade imbalances with clarity and confidence.
market session
Market session indicator (Asia, Frankfurt, New York, London)
CandleColourFlow_Limited_EURUSD
CandleColourFlow – smart color-coded trend indicator.
Market Sessions Advanced
Advanced Market Sessions with ICT killzones
E7 cTrader User ID
cTrader ID
Indicator
RSI
Breakout
Lozano Price Action
LPA simplifies trading by coloring candles with volume data and RSI levels for trend and reversal insights.
ictkillzonesfromnovem
ICT ALL KİLL ZONES, LONDON , ASİA, NY AM, NY LUNCH, NY PM