OPEN-SOURCE SCRIPT
Darvas Box Theory
How it works:
Spot a new high — price makes a fresh high over your lookback window (e.g., 20 bars).
Wait for confirmation — if price stays below that high for N consecutive bars (default 3), the high becomes a locked-in box top.
Set the bottom — the lowest low during that confirmation window becomes the box bottom.
Trade the breakout — a close above the top = bullish breakout (buy signal), a close below the bottom = breakdown (exit/short signal). Either way, the box closes and the search for the next one begins.
Spot a new high — price makes a fresh high over your lookback window (e.g., 20 bars).
Wait for confirmation — if price stays below that high for N consecutive bars (default 3), the high becomes a locked-in box top.
Set the bottom — the lowest low during that confirmation window becomes the box bottom.
Trade the breakout — a close above the top = bullish breakout (buy signal), a close below the bottom = breakdown (exit/short signal). Either way, the box closes and the search for the next one begins.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.