The Darvas Box Breakout forex indicator for Metatrader 4 was developed by Nicolas Darvas.
The Darvas Box is mostly used to identify new market trends on the daily charts.
Therefore, this trend indicator doesn’t require too much work to follow its daily buy/sell signals and suits part-time forex traders.
How it works
The Darvas Box Breakout MT4 indicator consists of an upper border (resistance) and lower border (support).
A buy signal occurs when price breaks through the upper Darvas border. A stop-loss is set a few pips under the lower border.
Conversely, a sell signal occurs when price breaks through the lower Darvas border. A stop-loss is set a few pips above the upper border.
The AUD/USD Daily chart below displays the Darvas Box Breakout Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Darvas Box Breakout MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Buy the currency pair when price breaks through the upper Darvas Box border.
Sell Signal: Sell the currency pair when price breaks through the lower Darvas Box border.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Day
Copy and paste the darvas-boxes.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)