BeST Darvas Boxes
BeST_Darvas Boxes is an MT4 Indicator based on the trading method developed in the 50’s by the Hungarian Nicolas Darvas.
BeST_Darvas Boxes indicator,
· draws the Top and the Bottom of every Darvas Box that can be confirmed on the current Chart.
· draws Buy and Sell Arrows for every confirmed Upwards or Downwards Breakout of the above levels.
· draws always only after the bar closing and so is non-repainting.
The only Input parameters of the indicator are the following:
· Select LB Period: It is the number of Bars that we Look Back on the Chart searching for confirmed Darvas Boxes. It is easily understood that larger LB Periods define more stable trends and less fake breakouts.
· Select to Show or Not Arrows: You can select to see or not the Buy and Sell Arrows and so you can clearly work with the corresponding Trading Strategy.
· Select the distance between Darvas Boxes and Arrows: You can select how far from the Darvas Boxes the Buy and Sell Arrows will be drawn.
For EA Developers
· Top of a Box: Buffer = 1
· Bottom of a Box: Buffer = 2
· Buy Arrow: Buffer = 3
· Sell Arrow: Buffer = 4
Nicolas Darvas was a pro dancer, self-taught investor and author. He is also widely known for his book, "How I Made $2,000,000 in the Stock Market", where he describes his "Box System", which he used to buy and sell stocks.
His trading method was also called "BOX theory", according to which he considered a stock price move as a series of boxes. When the stock price was within the limits of such a box, he just waited. He bought only when the price rose out of the box. At the same time he also set a stop-loss just under the bottom of the most recent box.There are some default rules about the dimensions of a "Darvas Box", that is for when the top and bottom of a box are confirmed and make a clearly formed box (for further details you can see among many others, the e-book "Darvas Box Trading" by Frank Watkins).