Darvas' theory is based on trading ranges (boxes), the upper and lower boundaries of which are the highest and lowest prices for a certain period, respectively. Thus, the price peaks form the upper and lower borders of the box. A price breakout beyond the upper bound gives a buy signal. Conversely, a price breakout beyond the lower bound is a sell signal. The opposite border of the box in both cases acts as a protective stop loss level. The indicator on the site is provided in the form of two continuous lines, green and red. The green line is the top border of the box, and the red line is the bottom border of the box. The indicator parameters are the number of days with prices below the peak bar on the left and right, respectively.
