The Darvas Box

The box is created when the stock trades within a rectangle formation. This is characterized by prices trading within a narrow range for at least three weeks. There is some subjective decision-making in this process, but if the trader must question whether a stock is in a narrow range, he or she should pass on that stock and look for a clearer signal. Buys are taken when prices break through the top of the box. Well-behaved stocks will form new boxes at higher levels. Stocks should be sold when the price breaks below the bottom of the highest box. 



http://www.investopedia.com/articles/trading/08/Darvas.asp

I always plot near the congestion areas, and not at the tails of the candles. Most of the time, heads and tails just are one board lot.

Most chartists draw a trendline through extreme high and low points, but it is
better to draw it through the edges of congestion areas . Those edges show where the majority of traders have reversed direction. Technical analysis is poll-taking - and polltakers want to track opinions of masses, not of a few extremists. Drawing trendlines through the edges of congestion areas is somewhat subjective. Elder