GBP/USD Box Method

The GBP/USD box method takes advantage of the London open session.

Draw the box, wait for the breakout and then set your stop-loss and profit target accordingly.

There is no need to keep monitoring your charts.

Chart Setup

Indicators: 4 Sessions (optional)
Preferred time frame(s): 15 Min chart
Trading sessions: N/A
Preferred Currency pairs: GBP/USD

Download

Download the GBP/USD 15 Min Box Strategy for Metatrader 4.

GBP/USD 15 Min Chart

gbpusd-box-method

Here’s an example of the GBP/USD box method. Price closed above the high of the box.

So, we went long at 1.6307 with stop below the previous swing low price at 1.6295.

Calculating our price target (risk-to-reward 1:2): 1.6307 – 1.6295 = 12 * 2 = 24 pips. Target: 1.6307 + 24 pips = 1.6331

Trading Rules

Buy Rules:

  • Criteria #1: At London open, draw a box enclosing the high and low price of the previous 2 hours. (8 x 15 min candles)
  • Criteria #2: Wait for a 15 min candlestick to close above the high of the box

This is your buy entry. Place your protective stop below the previous swing low.
Price Objective: Risk-to-reward 1:2 (i.e. risking 25 pips to make 50).

Sell Rules:

  • Criteria #1: At London open, draw a box enclosing the high and low price of the previous 2 hours. (8 x 15 min candles)
  • Criteria #2: Wait for a 15 min candlestick to close below the low of the box

This is your sell entry. Place your protective stop above the previous swing high.
Price Objective: Risk-to-reward 1:2 (i.e. risking 30 pips to make 60).

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