Darvas Box Indicator

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Screenshot of Darvas Box Indicator indicator

The Darvas Box Indicator automatically identifies consolidation ranges using the classic Darvas Box Theory, helping traders visualize breakout levels and trend continuation setups directly on the chart.

It scans for new 52-bar highs and begins forming a potential box once price reaches a fresh high. This setup is traditionally used on the weekly timeframe, meaning it scans for 52-week highs. The box is confirmed after a user-defined number of confirmation bars (the Darvas Box Strategy traditionally uses 3) without a higher high. Once confirmed, the indicator plots the box top and box bottom, creating a clear price range that reflects the consolidation phase described in traditional Darvas Box rules.

When price breaks above the box top, a Darvas Box breakout signal is generated, highlighting a potential momentum continuation opportunity often used in a Darvas Box trading strategy. The box bottom remains active as a key support level until price breaks below it, which triggers a breakdown signal.

Optional features include breakout confirmation using the closing price and a relative volume (RVOL) filter, allowing traders to refine signals and build more robust Darvas Box strategy setups.

This indicator is ideal for traders who want to automate the classic Darvas Box strategy, quickly identify consolidation patterns, and spot breakout opportunities across any market or timeframe.

describe_indicator('Darvas Box Indicator');

// ===== Inputs =====
const confirmBars        = input.number('Confirmation Bars', 3, { min: 1 });
const showLabels         = input.select('Show Labels', 'Yes', ['Yes', 'No']) === 'Yes';
const breakoutUsesClose  = input.select('Breakout Uses Close', 'Yes', ['Yes', 'No']) === 'Yes';
const useRVOLForBreakout = input.select('Use RVOL for Breakout', 'No', ['Yes', 'No']) === 'Yes';
const rvolLookback       = input.number('RVOL Lookback', 20, { min: 1 });
const rvolThreshold      = input.number('RVOL Threshold', 1.0, { min: 0.1 });

// ===== Validate Inputs =====
assert(confirmBars >= 1, 'Confirmation bars must be at least 1');
assert(close.length >= 52, 'Need at least 52 bars of data for this indicator');

// ===== Core Data Series =====
const rollingHigh52 = highest(high, 52);

// Compute RVOL if needed
const rvol = useRVOLForBreakout
    ? div(volume, sma(volume, rvolLookback))
    : series_of(1);

// ===== State Variables =====
// Candidate box state
let candidateActive    = false;
let candidateTop       = null;
let candidateBottom    = null;
let candidateHighIndex = null;
let confirmCount       = 0;

// Active box state
let boxActive  = false;
let boxTop     = null;
let boxBottom  = null;

// Box bottom persists until broken or new box forms
let boxBottomActive      = false;
let persistentBoxBottom  = null;

// Previous bar's rolling high to detect new highs
let prevRollingHigh = null;

// ===== Output Series =====
const rollingHighSeries   = series_of(null);
const boxTopSeries        = series_of(null);
const boxBottomSeries     = series_of(null);
const boxFormedSignal     = series_of(0);
const boxBreakoutSignal   = series_of(0);
const boxBreakdownSignal  = series_of(0);
const boxFormedLabels     = series_of(null);
const boxBreakoutLabels   = series_of(null);
const boxBreakdownLabels  = series_of(null);

// ===== Main Loop =====
for (let i = 0; i < close.length; i++) {

    // Always populate rolling high
    rollingHighSeries[i] = rollingHigh52[i];

    // Check if price breaks below the persistent box bottom (deactivates box)
    if (boxBottomActive && close[i] < persistentBoxBottom) {
        boxBreakdownSignal[i] = 1;
        if (showLabels) {
            boxBreakdownLabels[i] = 'BD';
        }

        boxBottomActive        = false;
        persistentBoxBottom    = null;

        if (boxActive) {
            boxActive  = false;
            boxTop     = null;
            boxBottom  = null;
        }
    }

    // Check for new 52-bar high event (only when no active box and not in candidate)
    const isNew52High = high[i] === rollingHigh52[i] &&
                        (prevRollingHigh === null || high[i] > prevRollingHigh);

    if (isNew52High && !boxActive && !candidateActive) {
        candidateActive    = true;
        candidateTop       = high[i];
        candidateBottom    = low[i];
        candidateHighIndex = i;
        confirmCount       = 0;

        // Clear previous box bottom when new candidate starts
        boxBottomActive      = false;
        persistentBoxBottom  = null;
    }

    // Process candidate confirmation
    if (candidateActive && i > candidateHighIndex) {

        if (high[i] > candidateTop) {
            // New higher high — reset candidate
            candidateTop       = high[i];
            candidateBottom    = low[i];
            candidateHighIndex = i;
            confirmCount       = 0;
        } else {
            confirmCount++;
            candidateBottom = Math.min(candidateBottom, low[i]);

            if (confirmCount >= confirmBars) {
                // Lock the box
                boxTop    = candidateTop;
                boxBottom = candidateBottom;
                boxActive = true;

                candidateActive     = false;
                boxBottomActive     = true;
                persistentBoxBottom = boxBottom;

                // Retroactively paint the box from its first candle up to now.
                // This is the key fix: the box visually "covers" the candles it
                // was built from, not just the candles after confirmation.
                for (let j = candidateHighIndex; j <= i; j++) {
                    boxTopSeries[j]    = boxTop;
                    boxBottomSeries[j] = boxBottom;
                }

                boxFormedSignal[i] = 1;
                if (showLabels) {
                    boxFormedLabels[i] = 'Box';
                }
            }
        }
    }

    // Populate box top going forward when active
    if (boxActive) {
        boxTopSeries[i] = boxTop;

        const priceBreakout = breakoutUsesClose
            ? close[i] > boxTop
            : high[i] > boxTop;

        const rvolCondition = useRVOLForBreakout
            ? (rvol[i] !== null && rvol[i] >= rvolThreshold)
            : true;

        if (priceBreakout && rvolCondition) {
            boxBreakoutSignal[i] = 1;
            if (showLabels) {
                boxBreakoutLabels[i] = 'BO';
            }

            // Deactivate box top after breakout, keep bottom active
            boxActive = false;
            boxTop    = null;
            boxBottom = null;
        }
    }

    // Populate box bottom whenever active (persists after breakout)
    if (boxBottomActive) {
        boxBottomSeries[i] = persistentBoxBottom;
    }

    prevRollingHigh = rollingHigh52[i];
}

// ===== Paint Outputs =====
paint(rollingHighSeries, {
    name:      'Rolling High 52',
    color:     '#888888',
    thickness: 1,
    style:     'line'
});

paint(boxTopSeries, {
    name:      'Box Top',
    color:     '#0066ff',
    thickness: 2,
    style:     'ladder'
});

paint(boxBottomSeries, {
    name:      'Box Bottom',
    color:     '#0066ff',
    thickness: 2,
    style:     'ladder'
});

paint(showLabels ? boxFormedLabels : series_of(null), {
    name:            'Box labels',
    style:           'labels_above',
    color:           '#0066ff',
    backgroundColor: '#0066ff',
    fontSize:        10,
    verticalOffset:  5
});

paint(showLabels ? boxBreakoutLabels : series_of(null), {
    name:            'BO labels',
    style:           'labels_above',
    color:           '#00ff00',
    backgroundColor: '#00ff00',
    fontSize:        10,
    verticalOffset:  10
});

paint(showLabels ? boxBreakdownLabels : series_of(null), {
    name:            'BD labels',
    style:           'labels_below',
    color:           '#ff0000',
    backgroundColor: '#ff0000',
    fontSize:        10,
    verticalOffset:  5
});

// ===== Register Signals =====
register_signal(boxFormedSignal,    'Box Formed');
register_signal(boxBreakoutSignal,  'Box Breakout');
register_signal(boxBreakdownSignal, 'Box Breakdown');

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