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Darvas Box Theory
Darvas box theory was developed by Nicolas Darvas, a ballroom dancer who obtained copies of Barron's and The Wall Street Journal, where he looked only at the stock prices. That way, he could turn investment of $10.000 to a $2.000.000 in 18 months.
Darvas box is created when stock price rises above its previous 52-week high and then falls just below that 52-week high. Lower price is used as the bottom of the box and higher price as the top.
Many think that Nicolas Darvas made his success because he traded during bull market, and that his theory could not be implemented in bearish market.
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