what is darvas box theory 
darvas box theory is a trading strategy developed by nicolas darvas that targets stocks using highs and volume as key indicators darvas trading technique involves buying into stocks that are trading at new highs and drawing a box around the recent highs and lows to establish an entry point and placement of the stop loss order a stock is considered to be in a darvas box when the price action rises above the previous high but falls back to a price not far from that high 1