Darvas Box by Nicolas Darvas

Overview

The Darvas Box Theory was created by Nicolas Darvas and described in his first book, "How I Made $2,000,000 In The Stock Market" (1986, Lyle Stuart Kensington Publishing, New York).

The "Darvas Box" is a very simplistic basic element of Darvas's trading methodology. Coupling this indicator with his strict disipline, uncanny market insights, and risk management, Darvas amassed a fortune of over $2.2 million dollars starting with an account of only $10,000. This was in 1959 and would be equivalent to over $20 million dollars today.

Details

One method of using the Darvas Box to signal trades is based on a simple breakout strategy of the Darvas Box lines. If price breaks the top box, trade long; if price breaks below the bottom box, trade short.

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