Darvas Box Stock Indices Analysis and Darvas Box Stock Indices 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 techniques that Darvas combined to form his stocks stock indices system. Along with this trading methodology he made accurate trade decisions.
Darvas Box
Stock Indices Analysis and How to Generate Trade Signals
This trading method is used to generate signals based on a simple breakout strategy of the Darvas Box lines.
Bullish Trading Signal
If the stock price on a chart breaks out at the top box line, then this is a bullish signal
Bearish Trading Signal
If the stock price on a chart breaks out to the lower line, then this is a bearish trading signal.
The example illustrated below shows a bearish signal generated from the Darvas Box Indicator.
Breakout - Bearish Signal