How To Trade Stocks Using The Darvas Box

Nicholas Darvas was a Canadian dancer in the 1950’s who managed to turn $8,000 into over $2,000,000 (worth
over $20,000,000 in 2016 when accounting for inflation) over a period of 5 years. He did this through a series of
well-planned out investments. Darvas developed a trading method called the Darvas Box, and consequentially he
wrote a book called “How I made $2,000,000 in the Stock Market.” The link to his book is available on the Market
Prowler resources page. It is a recommended must-read for swing traders and anyone who suffers from trader’s
anxiety. The Darvas Box trading method is a simple yet extremely efficient one. In its simplest form it takes into
account support and resistance levels and allows a trader to go up with a trend, setting well calculated stop losses
should a trend turn against him.
There are rules for what constitutes a Darvas box on a chart and what doesn’t, however, lucky for us modern
technology can automatically calculate and draw these boxes for us. This saves us from having to spend hours
upon hours examining charts and drawing boxes with a pencil like old man Darvas once did. Below you can see a
Daily graph for AMD with Darvas boxes applied to it. You may notice how the boxes are stacking on top of each
other, or as Darvas called it in his book, “building a pyramid.” Darvas boxes can be used to trade anything,
whether it’s stocks, options, index futures, etc.

The rules for successfully initiating long or short trades as well as placing proper stop losses using the Darvas Box
method are extremely simple.

5 Steps to trading a Darvas Box:

"In The Stock Market Jungle
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Member's Only Content

The Darvas Box is one of many premium trade tools discussed in detail on the Market Prowler Member's page.
Members should log in to access this information and to learn what kind of effective trade setups can be
implemented using the Darvas Box. The Owner of Market Prowler will also share a Darvas Box trade example that
he conducted in his personal trading account.
The Intelligent Trader
To learn more about basic and advanced uses of The Darvas Box
check out The Intelligent Trader, which is a book that covers
both this trade setup and many more in depth. This book takes
readers from the beginer level all the way up to the professional
technical analyst level step by step with easy to follow lessons
and examples.
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