Darvas Box Analysis & Darvas Box 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 & made a profit of over 2 million dollars.
This is one of the methodologies which Darvas combined to form his stocks system. Along with this methodology he made accurate trade decisions.
Darvas Box
Indices Analysis & Generating Trade Signals
This trading method is used to generate signals based on a simple break out strategy of the Darvas Box lines.
Bullish Trading Signal
If the price on a chart breaks out at the top box line, then this is a bullish signal
Bearish Trading Signal
If the price on a chart breaks out to the lower line, then this is a bearish signal.
The example explained and illustrated below shows a bearish signal generated from the Darvas Box Technical Indicator.
Break Out - Bearish Signal