Darvas Boxes

Back in the fifty, Nicolas Darvas was a wall-street personality. He used his boxes method, for automatic entry and stoploss, and made a fortune ..

Darvas identified the high of a box file once that action had not reached a high after three consecutive days and ditto for the lower limit, no new low after 3 consecutive days. Other criteria were also considered to constitute an input point.

But each overflow of the high limit once he was in position, he made a new entry with new add orders. The stop was always placed on the lower limit of the box

Warning from “hk-lisse” on his blog:

1. Indicator introduce a bullish bias because to form a new box, we always start to draw it from the top
2. The code make use of future price that are not known at present time
   
   rem from hk_lisse blog k=48 once tth=undefined once ttl=undefined n=(k*2)-4 p=(n/2)-1 h1=dpo[n](high) moyh=high-h1 hi=(moyh-moyh[1]+(high[p])/n)*n hi=(round(hi*100))/100 l1=dpo[n](low) moyl=low-l1 lo=(moyl-moyl[1]+(low[p])/n)*n lo=(round(lo*100))/100 low1=(round(low*100))/100 high1=(round(high*100))/100 if barindex > 100 then if box=1 and (high1>tth or low1<ttl) then box=0 flag=0 endif if box=0 and flag=0 and high1>=hi[46] and high1>=hi[45] and high1>=hi[44] then th=high1 flag=1 endif if box=0 and flag=1 then for zz=0 to 44 if hi[47-zz-1]>th or hi[47-zz-2]>th or hi[47-zz-3]>th then flag=0 break endif if lo[47-zz]<lo[47-zz-1] and lo[47-zz]<lo[47-zz-2] and lo[47-zz]<lo[47-zz-3] then box=1 tth=th ttl=lo[47-zz] break endif next endif else tth=undefined ttl=undefined endif if box=1 then ba=ttl else ba=tth endif if box=1 then col=1 else col=-1 endif return ba coloured by col , tth coloured by col,ttl coloured by col

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   rem from hk_lisse blog k=48 once tth=undefined once ttl=undefined n=(k*2)-4 p=(n/2)-1 h1=dpo[n](high) moyh=high-h1 hi=(moyh-moyh[1]+(high[p])/n)*n hi=(round(hi*100))/100 l1=dpo[n](low) moyl=low-l1 lo=(moyl-moyl[1]+(low[p])/n)*n lo=(round(lo*100))/100 low1=(round(low*100))/100 high1=(round(high*100))/100   if barindex > 100 then if box=1 and (high1>tth or low1<ttl) then   box=0   flag=0 endif if box=0 and flag=0 and high1>=hi[46] and high1>=hi[45] and high1>=hi[44] then   th=high1   flag=1 endif if box=0 and flag=1 then   for zz=0 to 44    if  hi[47-zz-1]>th or hi[47-zz-2]>th or hi[47-zz-3]>th then     flag=0   break   endif   if lo[47-zz]<lo[47-zz-1] and lo[47-zz]<lo[47-zz-2] and lo[47-zz]<lo[47-zz-3] then    box=1    tth=th    ttl=lo[47-zz]   break   endif next endif else   tth=undefined   ttl=undefined endif   if box=1 then    ba=ttl   else    ba=tth   endif   if box=1 then    col=1   else    col=-1   endif   return ba coloured by col , tth coloured by col,ttl coloured by col

   
   For drawing purpose : add a fill color between the 1 and 2 return values.
   Set the first one in points, the second  and third one in large points.

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