Darvas Box Indices Technical Analysis and Darvas Box Indices Trading Signals
Developed by Nicolas Darvas
Nicolas Darvas is a famous trader who made 2 million dollars trading the stocks market. Darvas started with an account of 10,000 dollars and made a profit of over 2 million dollars.
This is one of the trading methodologies that Darvas combined to form his stocks stock indexes trading system. Along with this trading methodology he made accurate trading decisions.
Indices Technical Analysis and Generating Indices Trading Signals
This trading method is used to generate indices trading signals based on a simple breakout strategy of the Darvas Box lines.
If the stock indexes price on a stock indices chart breaks out at the top box line , then this is a bullish signal
If the stock indexes price on a stock indices chart breaks out to the lower line, then this is a bearish trading signal.
The example explained and illustrated below shows a bearish signal generated from the Darvas Box Indices Technical Indicator.
Break Out - Bearish Signal