The Darvas Boxes is a Metatrader 4 indicator that was designed as a product of the original Darvas Box Strategy.
The strategy was created by Nicolas Darvas for the Stock Market where he was able to churn in huge returns on his investment within a short period.
Seemingly, forex traders can also replicate this trading technique in the currency market in a bid to also earn extraordinary returns.
The lower and higher time frames will perform optimally when traded using the Darvas Boxes custom indicator.
Key Takeaways
- The Darvas Boxes displays tops and bottoms during price action, and it is this feature that it uses in confirming current market signals. These tops and bottoms are depicted on the Darvas Boxes as horizontal lines.
- Generally speaking, when price moves into the high box and continues in such a manner, it is signaling bullish price sentiments. On the hand, when price moves into the lower box, and continues in that vein, it is a signal to go long.
- The Darvas Boxes indicator is fully customizable, and as such offers complete personalization rights.
Feel free to explore the Darvas Boxes indicator’s different parameters and settings to create your own personalized indicator setup.
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Download the “darvas-boxes.ex4” Metatrader 4 indicator
Darvas Boxes Forex Indicator Chart (CAD/JPY H1 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Darvas Boxes MT4 Indicator
Buy Signal: Go long when price bar closes above the high of the current Darvas box, and price continues to move into higher boxes.
When the silver histogram of the MACD indicator gets printed above the 0.00 signal level, it is a buy signal confirmation.
Sell Signal: Go short when price bar closes below the low of the current Darvas box, and price continues to move into lower boxes.
When the silver histograms of the MACD indicator gets printed below the 0.00 signal level, it is a sell signal confirmation.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price bar closes below the high of the current Darvas box. Else, a silver histogram of the MACD indicator gets printed below the 0.00 horizontal level.
Exit sell trade: Close all sell orders if while a bearish trend is running, price bar closes above the low of the current Darvas box. Else, a silver histogram of the MACD indicator gets printed above the 0.00 horizontal level.
Tips: The Darvas Boxes indicator is an extremely powerful momentum indicator that can be applied to everyday trading.
Although, it can serve as a standalone technical tool, it works marvel when combined with other technical indicators like the MACD, Alligator, Stochastic, etc.
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Download the “darvas-boxes.ex4” MT4 indicator
Adjustable Parameters
Colors.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Momentum
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.