Darvas Box Indices 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 and made a profit of over 2 million dollars.

This is one of the methodologies which Darvas combined to form his stocks stock indices trading system. Along with this methodology he made accurate trade decisions.

Darvas Box

Indices Analysis and Generating Trade Signals

This trading method is used to generate indices trading signals based on a simple break out strategy of the Darvas Box lines.

Bullish Trading Signal

If the stock indices price on a stock indices chart breaks out at the top box line, then this is a bullish signal

Bearish Trading Signal

If the stock indices price on a stock indices 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 Indices Technical Indicator.

Break Out - Bearish Signal