The Darvas box method was described by Nicolas Darvas in How I Made $2,000,000 in the Stock Market (1960). A stock makes a new high, consolidates in a defined price range (the "box"), and the breakout above the box top on increased volume is the buy signal. Shibui lets you describe these criteria in plain English and check them across the entire US market.
What the screener checks
New high detection
Identifies stocks that made a new 52-week or multi-month high recently. The new high marks the top of a potential box.
Box formation
After the new high, the stock consolidates in a defined range. The box top is the high; the box bottom is the lowest point during consolidation.
Volume confirmation
Volume declining during the box (consolidation phase) and expanding on the breakout above the box top. Volume separates real breakouts from noise.
Stacking boxes
The strongest Darvas signals form stacking boxes: a stock breaks out, forms a new higher box, and breaks out again. Each box sits above the last.
How a Darvas box forms
The method works in three steps. First, a stock makes a new high. Second, it stops making new highs and trades within a range for several days. The top of this range is the box top; the lowest point during consolidation is the box bottom. Third, the stock closes above the box top on above-average volume. That breakout is the buy signal. The box bottom becomes the stop-loss level.
| Step | What to check | Shibui data |
|---|---|---|
| New high | Stock hit a 52-week or 20-day high recently | stock_quotes (daily high, 52-week window) |
| Box range | Price traded within X% range for N+ days | stock_quotes (high, low over recent days) |
| Volume in box | Average volume during box < 50-day average | stock_quotes + technical_indicators |
| Breakout | Close above box top on above-average volume | stock_quotes (close, volume) |
| Uptrend context | Price above 200-day SMA | technical_indicators (sma_200) |
Example screens
"Find stocks that hit a new 52-week high in the last 20 trading days, then traded in a range of less than 8% for at least 5 days, and today's close is above that range. Show volume versus the 50-day average."
This is the basic Darvas box breakout screen. Claude identifies the box (new high followed by tight consolidation), checks whether today's close broke above it, and shows volume context to confirm the breakout.
"Show me stocks over $500M market cap where the price is within 2% of its 52-week high, the 10-day price range is less than 5%, and average volume in the last 10 days is below the 50-day average. Sort by market cap descending."
This finds stocks sitting at the top of a potential box, ready for a breakout. The tight range near highs with declining volume is the Darvas setup before the move happens.
"Screen for stocks above the 200-day SMA that have formed at least two stacking consolidation ranges in the last 3 months, each with a higher low than the previous range. Show the ticker, current price, and the range of each consolidation."
This looks for stacking boxes: multiple consolidations, each higher than the last, within an uptrend. This is harder to automate and is where describing the pattern to Claude in plain English has an advantage over preset screener filters.
Darvas box vs. VCP
Both are consolidation breakout patterns, and traders often use both. A Darvas box is a single defined price range with a clean breakout above the top. Mark Minervini's Volatility Contraction Pattern is a series of progressively tighter contractions, each shallower than the last. Darvas is simpler to define and identify. VCP involves multiple contraction stages within the base and typically takes longer to form.
Shibui can screen for both. For VCP criteria (trend template, ATR contraction, volume dry-up), see the VCP screener.
Frequently asked questions
What is a Darvas box screener?
A Darvas box screener identifies stocks forming or breaking out of a Darvas box pattern: a stock makes a new high, consolidates in a defined price range (the box), and the breakout above the box top on increased volume is the buy signal. Named after Nicolas Darvas, who described the method in How I Made $2,000,000 in the Stock Market.
Is there a free Darvas box screener?
Shibui Finance is a free Darvas box screener. You connect it to Claude and describe the box criteria in plain English: new highs, consolidation range, volume conditions. There is no subscription. The trade-off is that there is no built-in box detection algorithm; you define the thresholds and Claude checks them across nearly 10,000 US stocks.
What is the difference between a Darvas box and a VCP?
Both are consolidation breakout patterns. A Darvas box is a single defined price range (box top = recent high, box bottom = lowest point in the consolidation) with a clean breakout above. A VCP is a series of progressively tighter contractions, each shallower and narrower than the last. Darvas is simpler to define; VCP involves multiple contractions within the base. See the VCP screener for that pattern.
Can I screen for Darvas box breakouts with end-of-day data?
Yes. Darvas box patterns form over days or weeks. End-of-day data identifies the box and confirms breakouts based on closing prices. Shibui's data updates after market close. You will see yesterday's breakout rather than today's intraday move, but for the pattern identification itself, daily data is standard.
How does the Darvas box method work?
The method works in three steps. First, a stock makes a new high. Second, it consolidates: the price stops making new highs and trades within a range for several days. The top of this range is the box top; the lowest point is the box bottom. Third, the stock breaks above the box top on increased volume. That breakout is the buy signal. The box bottom becomes the stop-loss level.
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