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| Darvas' theory is based on trading ranges (boxes), the upper and lower boundaries of which are the highest and lowest prices for a certain period, respectively. Thus, the price peaks form the upper and lower borders of the box. A price breakout beyond the upper bound gives a buy signal. Conversely, a price breakout beyond the lower bound is a sell signal. The opposite border of the box in both cases acts as a protective stop loss level. The indicator on the site is provided in the form of two continuous lines, green and red. The green line is the top border of the box, and the red line is the bottom border of the box. The indicator parameters are the number of days with prices below the peak bar on the left and right, respectively. |
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Darvas Box
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| Price Crossed Above Upper Band of Darvas(5,3) |
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| Price Crossed Above Lower Band of Darvas(5,3) |
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| Price Crossed Below Upper Band of Darvas(5,3) |
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| Price Crossed Below Lower Band of Darvas(5,3) |
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| Price Touched Above Upper Band of Darvas(5,3) |
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| Price Touched Above Lower Band of Darvas(5,3) |
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| Price Touched Below Upper Band of Darvas(5,3) |
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| Price Touched Below Lower Band of Darvas(5,3) |
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| Price Bounced Up From Upper Band of Darvas(5,3) |
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| Price Bounced Up From Lower Band of Darvas(5,3) |
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| Price Bounced Down From Upper Band of Darvas(5,3) |
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| Price Bounced Down From Lower Band of Darvas(5,3) |
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| Price Is Above Upper Band of Darvas(5,3) |
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| Price Is Above Lower Band of Darvas(5,3) |
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| Price Is Below Upper Band of Darvas(5,3) |
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| Price Is Below Lower Band of Darvas(5,3) |
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