The Darvas Box indicator is based on the Darvas Box Theory, a momentum-driven trading technique developed by Nicolas Darvas in the 1950s. It identifies "boxes" or trading ranges where a stock's price consolidates between defined upper and lower boundaries, representing resistance and support levels. A breakout above the upper boundary signals a potential buying opportunity, while a breakdown below the lower boundary may indicate a selling signal. This method emphasizes price action and volume, with traders looking for increasing volume to confirm momentum behind breakouts. Originally developed by Darvas, a dancer turned trader, the approach focuses on technical analysis without relying on fundamentals. The Darvas Box technique remains widely used among technical traders, particularly for momentum strategies in trending stock markets.