Thanks Bob...that helps quite a bit. I have read that for the trend to be firmly established in this method most use 3 days as a time period to establish the high, and then the low inside the box..do you agree?..Here is an excerpt from the site you gave me:
How to use the boxes...
The placement of the stop loss (and, actually, the decision to buy or sell) really varies from implementation to implementation. I believe Darvas' original interpretation was to only buy when there was a pattern of boxes stacking on top of each other and to place the stop loss at the top of the previous box. My program uses the low that's not penetrated for three days (after the top has definitively been formed and remains unpenetrated (the high of the box is always drawn first; the bottom is set only once the top has been formed (and remains unpenetrated throughout the establishment of the bottom)).
In its strictest interpretation, I'd look for at least three boxes, with each subsequent box being higher than the one before and then place a buy order if it penetrates the latest box to the upside. In addition, I place the constraint that any penetration of the box is only to the upside (a penetration of the bottom, or to the downside, should automatically trigger a stop loss).
In summary: my personal requirements are much stricter than Darvas' original method. I require the breakouts to be to the upside and require at least three stacked boxes with upside breakouts. The sell signal would be whenever it broke through the bottom of the latest (or last) box.
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