The Darvas box is a tool used in the strategy to identify potential trades. It involves drawing boxes around the price action of a stock to identify key support and resistance levels. The boxes are created by identifying a stock that is trading in a narrow range and then waiting for a breakout above the top of the range. Once the stock breaks out, a box is drawn around the new trading range, and the trader waits for the stock to make a move up or down from the box.
The Darvas box trading strategy emphasizes buying stocks that are in strong uptrends and holding them until they show signs of weakness or a reversal. It also involves using stop-loss orders to limit potential losses and taking profits when the stock reaches a predetermined target
