Time Frame : H1, H4
Currency : High volatile pairs (GBPJPY, GBPUSD etc )
Author : gofx
Market Session : First 4 Hours of Any Session
1. None – Price Action
At 08:00 EST (New York Time), draw a box enclosing the high and low of the previous hour.
BUY if the price moves above the box by 20% of the box height.
SELL if the price moves below the box by 20% of the box height.
This signal is only valid for one hour after it is generated.
Close the BUY trade when the price hits 400% above the box height.
Close the SELL trade when the price hits 400% below the box height.
Initial stop loss for the BUY trade is the bottom of the box.
Initial stop loss for the SELL trade is the top of the box.
*. Place a trailing stop equivalent to the size of the box to capture the profits gained.
Variations of the Box Break Out Method
There are many variations of the box break out method. The rules for this method are not set in stone. You can modify the setup to your individual profit, and risk appetites, and still find the method is profitable.
The most important aspect of the box break out method is the time to trade. This method works best during the first few hours of a new trading session, when the markets are most volatile