Good boxes or lines indicator?

<p>Darvas box theory is a technical tool that allows traders to target stocks with increasing trade volume. The Darvas box theory is not locked into a specific time period, so the boxes are created by drawing a line along the recent highs and recent lows of the time period the trader is using. The Darvas box theory works best in a rising market and/or by targeting bullish sectors.</p>

<p id="isPasted">"Boxes" and "lines" in trading generally refer to indicators that identify and visualize support and resistance levels or periods of consolidation and volatility. Here are some effective and widely used indicators that use horizontal lines or box-like areas:&nbsp;</p><p><strong>Indicators Using Lines (Support &amp; Resistance)</strong></p><ul><li>Fibonacci Retracements: This popular tool draws a series of horizontal lines at specific mathematical ratios (23.6%, 38.2%, 50%, 61.8%, etc.) between a major price swing's high and low. These lines act as potential support and resistance levels where the price may stall or reverse.</li><li>Pivot Points: A forward-looking indicator that automatically calculates and plots multiple horizontal support (S1, S2, S3) and resistance (R1, R2, R3) levels for the current trading period using the previous day's high, low, and closing prices.</li><li>Moving Averages (MA/EMA): These indicators create dynamic, moving lines that can act as support (when price is above the line in an uptrend) or resistance (when price is below the line in a downtrend). Common periods are 50-day and 200-day moving averages for long-term analysis. </li></ul><p><strong>Indicators Using Boxes (Ranges &amp; Volatility)</strong></p><ul><li>Bollinger Bands: This indicator plots three dynamic lines: a middle moving average, an upper band, and a lower band. The price typically trades within these "bands," which expand and contract based on market volatility, creating a dynamic trading range or "box". Price moving outside the bands can signal overbought/oversold conditions.</li><li>Donchian Channels / Keltner Channels: Similar to Bollinger Bands, these channels create "boxes" or envelopes around the price action to show the trading range and potential support/resistance, helping identify trend direction and volatility.</li><li>"Box Theory" Indicators: Custom indicators, often found on platforms like TradingView, are based on concepts like Nicholas Darvas's "Box Theory". These tools automatically draw boxes around recent price consolidation zones to signal potential breakouts when the price moves outside the box. </li></ul><p>The best approach is to combine one or two of these indicators (e.g., combining Fibonacci levels with a Moving Average) for confluence to confirm trade signals and manage risk effectively.&nbsp;</p>