Darvas Box Breakout Trend Following System
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Darvas Box Trend Trading
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Darvas Box Trend Trend Trading
A Darvas box is created when the price of a stock rises above the previous 52-week high, but then falls back to a price not far from that high. If the price falls too much, it can be a signal of a false breakout, otherwise the lower price is used as the bottom of the box and the high as the top.
He used his "Darvas box system," a form of support and resistance, to trade stocks and he emphasized that his method got him out of bear markets in advance, after a succession of failed trades. Outside of reacting to the performance of his trades when he would repeatedly get stopped out.
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