Testing the Darvas Box Theory In practice, the Darvas Box Theory might seem a little juvenile: drawing boxes on a stock chart to highlight ranges. In practice, it’s a smart and convenient way to ...

Seek out such entry points by drawing a downward-sloping trend line across the high points in a base. Start at the left-side high and touch at least two additional near-term high points on the chart.

Then draw a much larger final version of the chart, using markers on a big piece of paper suitable for presenting at meetings or mounting on the wall. Use differently shaped boxes for each type of ...