Range Box & Breakout

Weeks inside a tight price band, then a close escapes it — the market finally picked a direction.

A range box (Darvas box) is 15+ bars trading inside a narrow band: supply and demand balanced, position-holders rotating, nobody winning. The longer and tighter the box, the more energy stored.

The breakout is the close that escapes the band — above (bullish) or below (breakdown, bearish). Everyone who accumulated inside the box is now on one side, and the trapped side fuels the move.

Longer + tighter box → stronger breakout, statistically.

Volume on the breakout bar is the conviction check.

False breakouts are common — a close back inside the box within a bar or two traps the breakout buyers instead.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.