Darvas Box Setup
Nicolas Darvas's mechanical method. Identify a 'box' as a horizontal range bounded by a recent new high and the subsequent pullback low. Buy the breakout above the box top; sell if it breaks below the box bottom.
Target before stop: 14% reached +20% before −8% within 40 sessions. Sample: n=300 eligible setups. Average: -0.6% per setup (-0.07R).
Source-bar window: 2024-11-01–2026-10-26. Entry requires an executable breakout fill after the signal; unresolved setups receive the full replay window. Historical and illustrative, not predictive. No brokerage slippage, fees, taxes, or individualized sizing.
How this is measured →Setup Criteria
- › Stock making new 52-week highs
- › Defines a box: high (resistance) + 3% buffer below (support)
- › Box typically forms over 1–4 weeks
- › Volume should expand on breakout
- › Buy near 52W high, not on dips
Breakout above the box high with volume.
Below the box low — strict, no exceptions.
Worked Example
TXN — flagged as a Darvas Box on Oct 27, 2026 (score 77). 26 weekly bars with the 10-week SMA.
Entry / stop / target annotations are drawn for Pro members. Unlock →
Historical detection shown for education — not a current recommendation.
What Happened Next
Forward returns after the scanner first flagged a Darvas Box (score ≥ 70, gatekeeper passed, one signal per base) — computed from stored daily bars, no lookahead. 83 historical signals.
| After | Median Return | % Positive | Sample |
|---|---|---|---|
| 5 sessions | +1.2% | 62.7% | 83 |
| 10 sessions | +1.7% | 60.3% | 58 |
| 20 sessions | -6.7% | 20.0% | 20 |
Median best move inside 40 sessions: +5.5% · median worst drawdown: -3.7%. Past scanner behavior does not guarantee future outcomes. Not investment advice.
Today's Darvas Box Setups — 8 found
| Ticker | Setup score | RS score | Trend |
|---|---|---|---|
| TXN Texas Instruments Incorporated | 77 | 91 | ✓ |
| GILD Gilead Sciences, Inc. | 70 | 82 | ✓ |
| HACK | 70 | 94 | ✓ |
| FFIV F5, Inc. | 55 | 93 | ✓ |
| NTAP NetApp, Inc. | 55 | 96 | ✓ |
| PM Philip Morris International Inc | 55 | 68 | ✓ |
| TSM Taiwan Semiconductor Manufacturing Compa | 55 | 81 | — |
| QCOM QUALCOMM Incorporated | 50 | 71 | ✓ |
All Darvas Box Matches — 8 in the latest scan
Every match from the latest run, annotated with the detector's rails. Click any card for the full chart and trade plan.
