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Nicolas Darvas
The Self-Made Trader
Box Theory — Volatility Boxes + Momentum
Darvas documented the box system in How I Made $2,000,000 in the Stock Market. The method identifies a defined consolidation range, waits for an upside breakout with stronger volume, and protects the position with a stop.
Method principle · Legend AI synthesis Let the range define the setup: act only on a confirmed break above the box and keep the invalidation level explicit.
Key Rules
- Draw a box around the consolidation high and low
- Buy only when price breaks above the top of the box
- Volume must be high on the breakout
- Stop loss just below the bottom of the box
- Only buy stocks making new all-time or 52-week highs
- Never look back — let the stop manage the trade
Public Sources
Google Books catalog record ↗
Pan Macmillan book page ↗
Profile copy is a Legend AI summary of published methodology, not a quotation or endorsement.
Signature Patterns
Legend AI implements Nicolas Darvas's published methodology for educational pattern detection. Not affiliated with or endorsed by Nicolas Darvas. Not investment advice. Full disclaimer →