Vic Noble & Shirley Hudson – London Closing Trading Strategy (Vic Noble & Shirley Hudson – The Londo)

shirley traded 11 currency pairs, they are, 1) gbpjpy 2) eurgbp 3) usdcad 4) audusd 5) audjpy 6) nzdusd 7) eurusd 8) gbpusd 9) eurjpy 10) usdjpy 11) usdchf
We will also trade these 11 pairs.
London Close is a low-risk trend reversal strategy. The idea is to trade the rally at the end of the London session, when volatility drops, which signals the end of the daily trend and price should have reached the ADR (Average True Range). Both conditions offer a high probability of reversal for low-risk profits.

Here are the 10 steps of the London Closing Method:

01. Observe the 5-day average daily volatility
02. Identify eligible matches
03. Wait until the London closing time window
04. Check the U.S. Dollar Index.
05. Check key support and resistance levels on higher time frames
06. Pay attention to the risk environment
07. Use noble entry technology to enter
08. Set stop loss
09. Manage trade
10. Exit when profit target is reached

From now on we will trade this strategy together.

This is the text content of the entire course
(**) The number in parentheses at the end of each line is the video number for this course.

*) Welcome to our webinar (01)
*) Webinar Agenda - Part (02)
*) Retired from software sales and now works as a full-time real estate agent. (03)
*) 30 years in various markets, 5 and a half years as a futures broker, futures and options trader, and 13 years as a Forex tutor. (03)
*) Housekeeping - Webinar Expansion (04)
*) This strategy is a great complement to the long term strategy, it is a very short term trading technique that can translate into very large profits, 10-15-20 pips sl, you should find the accuracy of short term trading to be very high, you do not want to compromise on sound risk management, the risk is always kept very very small, everyone does different things based on their risk tolerance, you never Know what's coming next and always have a plan on how you are going to handle trading south, all you have to do is copy what Shirley did, capital preservation is at the core of sound trading Well, the technique can be used at any higher time frame support or resistance level so it does work at other times and situations, it's up to you and you will get feedback very quickly, Mark Douglas - 20 trades, long term strategy is hard, 20 trades will instill confidence in you which is crucial in anything you want to do, if you follow the parameters perfectly, the accuracy is much higher than any other long term method, know that most of the time you will be profitable, just look at a few pairs at first, make sure you start with more experienced, lower volatility pairs like New Zealand Dollar, Canadian Dollar have the best results. (05)
*) London session = most active - 8am London time, 3am New York time (taking into account dls); New York opens at 8am New York time, most news is released at 8.30am New York time, London market starts clearing and closes at 11.15-11.45am New York time (London opens at 12 noon New York point close), the New York Stock Exchange is open for a few hours, and by the end of the session, all the news has settled and prices have reflected events; traders in London are getting ready to go home, and it's lunch time in New York (traders take a break); it's a vacuum; prices slow down, stop new moves, and start falling back into a range; this is when you trade, taking advantage of the inevitable situations of the day to make a profit. (06)
*) She has a stock and options trading background, she first got into Forex in 2004; she has now looked at 10 pairs, but she really started with 1 or 2 pairs! (07)
*) In 2009-2010 she traded LC and found her consistency. Meaning 45678 = 5 years of struggle. (07)
*) Usually not loose.
*) The first profit target is reached almost every time. You can choose to move away from risk quickly.
*) You and others aware of this transaction will experience similar results. ——Yes(07)
*) Typically, the average ratio is 1.3 to 1.4. I keep an eye on it.
*) She missed January, February, March, April and most of May! It’s been almost 5 months. (07)
*) VN - She desires success more than anyone else, she is unwilling to settle for anything less, she never gives up, she is always looking for something that works within her trading time frame.
*) Of course everyone wants it badly, Bobby Knight - "Most people have the will to win, but few have the will to prepare to win" (07)
*) By guiding you through this course you will gain a real advantage without reinventing the wheel, you can simply use Shelly's wheel. She had figured it out, she never gave up, and let me tell you one thing she did very, very well, she managed risk, she never lost a lot of money, and the biggest secret to her success was her use of microcomputers.
*) Less than 1% of her account was at risk at one point. Guys, this is impressive, indeed. This is someone who doesn't accept failure, she wants to be the best she can be, she studied the charts and did her best until she found something that works for her, trust me she went through the ups and downs and finally figured this out. (07)
*) 10 steps(08)
01. Observe the 5-day average daily volatility
02. Identify eligible matches
03. Wait until the London closing time window
04. Check the U.S. Dollar Index.
05. Check key support and resistance levels on higher time frames
06. Pay attention to the risk environment
07. Use noble entry technology to enter
08. Set stop loss
09. Manage trade
10. Exit when profit target is reached
*) Setting up a transaction (09) 25 seconds video
*) In the foreign exchange market adr=atr they have the same meaning. There is a difference between commodities and stocks. (10)
*) If the USD Index has reached its 5-day average daily range at or around the same time as other US-based cross pairs have reached their 5-day average daily range - it will increase the intensity of the trade. (11)
*) One thing to know here is that the US Dollar Index moves particularly similarly to the US Dollar Index, it almost mirrors the US Dollar Index, so if you trade the US Dollar Index it is best to see that both the US Dollar Index and the Swiss Index have reached their 5-day ADR. (11)
*) usdx no ADR violation = us swissy no transaction. (11)
*) This is not an exact time, but a time window, (12)
*) There is a process for closing a trade on the day, which is related to the closing of trading volume and settlement, etc. (12)
*) The ideal setup occurs 45-15 minutes before the London close. (12)
*) What we have so far - (13) – Specific time period, 5-day ADR met, USD 5-day ADR, waiting period before placing trade, looking for expected level or s/r on higher timeframe of chart.
*) In the lc area it also reaches the expected level of S/R on the higher timeframes (hourly - weekly), which is really the key part of things here if you don't see any clear support/resistance channels in this trade (chart example). (For s/r daily/weekly charts, big swings can be considered even 38% swings can be very strong s/r) (It’s cool that we know a lot of things ahead of time, so we can prepare for these levels in advance) (14)
*) lct setup review - hit adr > check usdx > get into lc > expected reaction based on s/r on higher time frame. (15)
*) It's time for the price to prove to us that it will stop. Therefore, we can make these trades with very small SL points. (Chart example)(15)
*) Trade Entry (Question) - "You should start one hour before London close starts" - VN, in most cases this is a counter trend trade. (16)
*) Trade Entries – We use an entry technique called Noble Entry. Price proves it will stop, then buy the dip. (17)
*) Entry instructions (chart) - You buy at the ask price and sell at the bid price. The chart plots bid prices. Whimpy - 15% of advertising fee for 5 days. (18)
*) Set stop - use sl below or above point X. High Volatility - 30 pips. Gbpyen shirley used it. Eliminate risks as quickly as possible. (19)
*) Part 4 (Regulating Trade) (Questions) (20)
*) Manage your trade - It is important to know when and where to take profits. (twenty one)
*) Management - When the price starts moving in your favor you first need to think about reducing your risk, this should always be your job 1, you want to start taking profits. (twenty two)
*) If you are 10 pips up on a trade (10 pips SL) you can start looking to get rid of the risk of the trade completely (stop to BE) or as an alternative you can take some profit so that if it hits the down SL then it becomes a BE trade. (twenty two)
*) Your risk point = your first profit target. If your risk is 15 pips, the first target is 15 pips. (twenty two)
*) The next profit objective is a swing high or low. Generally this is a very good place to start and I use the body of the candle instead of the wick and sometimes it doesn't reach the wick. (twenty two)
*) The idea is to keep it simple, make short-term trades and make regular profits from the market. (twenty two)
*) Once you take a profit and set a BE stop loss, we will make a profit twice the initial risk. If you see an obvious s/r twice before, take profits, this is a counter trend team, learn to take profits on a logical level. (twenty two)
*) No losses are allowed at this time, in fact you should make some profits. (twenty two)
*) 38% of the day's trend may be a very good profit point. If this were the overall trend in the market on the daily time frame, price would hit these levels quite often. This is a really good place to bounce back. (twenty two)
*) 2:1 is a good place to close a position. (scrabbled illustration) (22)
*) Other considerations - Risk Environment - Risk - Traders are in risk-taking mode and they are moving from cash to stocks. (twenty three)
*) If stocks fall, it will cause a = dollar rally (people are taking out all their stocks and cashing them out = risk aversion) (23)
*) FOMC news released late. 2.15 pm New York time, White Dove Book. By this time the news had come out and been digested. By the time London ends, usually all the news is over. (twenty three)
*) Commodity Currencies - Australian Dollar, Canadian Dollar, When you trade these currency pairs it would be a very good idea to see Gold, Silver, Copper Oil and how they react on the day. Is the Tronald Stock Exchange, CRB Index at an important support or resistance level. (twenty three)
*) Set up your trading day - check your charts an hour or so before the London close. (twenty four)
*) If adr is met in lc, consider s/r, (mark expected s/r in advance), then wait for noble entry to be set. twenty four)
*) 10 Steps to LCT - (25)
*) Check the trend of the stock market, if it's just a small rise or fall, and it's not moving fast, it's somewhat stable - no problem, it's really skyrocketing or plummeting, find out what's going on, and keep a close eye on it. (US-Canada Trade - Dow Jones sharply lower, Irish troubles, Austria struggling to support Greece, general concern is flight to euro, massive flight to dollar for safety, no slowdown at London close, this is the time you want to take a side, take a side, gold is down sharply ($38 an ounce), oil is down ($2), t… The SE fell 200 pips which was negative for the Canadian dollar and positive for the USD pair, we stood aside until the price started to fall back into the range, even with a qualifying move and everything, it saved our losses, (25)
*) Part 5 - Trading Example (Questions) - Shirley uses the 5 minute chart. You need to know the other person's personality very well. (26)
*) T Example - How it all comes together (15 second video) (27)
*) TE - Audusd - Didn't go all day 38%. (28)
*) euryen - adr is 19, but the swing is 13 to 15, so is left alone. Shirley has a strategy for cutting her losses. (Learn to walk first, then run) (29)
*) Shirley will share some tips and tricks - (30)
*) I don't have multiple screens, started learning this method with very little money, prove to yourself that you can learn and follow the parameters and not deviate from them first, prove your success with 20 trades in a row, use the 2 part closing method, 100 less = low volatility, 200 more = ugly pairs, macd div (your own method) = Chasing big profits, these are counter trend trades that usually give you limited profits, (I usually let go more if I shoot for the moon), greed won't pay more in LCT, close the trade if 2:1, strict basics first, use intela charts for charting, use mt4 for trading, have 3 accounts, I try to keep emotions away from my trading, I Trying to say next, when I miss a setup I watch my parameters closely, 1 pip is very close, if I got all the trades I missed, it would stay that way. More importantly, I missed a lot of trades, sorry about that, I know a lot of people were not trading on Monday (US stocks were mixed, --- down, the US dollar index barely reached its range) (31)
*) If the pivot is at 62%, you should enter the trade at 62%. (31) *) Prices usually consolidate before good news is released (base), so it is not wise to continue trading during this period. Need sl. (31)
*) euryen - don't go for the final target, use a trailing stop, it will help, if you go past 13:00 (1:00 PM in New York) you may want to close the position. (31)
*) Sometimes LCT builds up again - watch out for another scalp trade during the New York session, also keep an eye on Asia, (Singapore/Hong Kong open) I wouldn't trade late in Asia or Europe. audusd - Asian session lc settings (20 pips scalp). (32)
*) Late Entry - When the Lc time frame is not feasible, there is no pairing in the daily range, or some may be close, anyway I will wait for the ADR to arrive, then I will look for noble entry opportunities and close the trade with 38% of the entire ADR. (I find it's amazing how it works sometimes), gbpusd target could be - 50%, gbpjpy - like 50 and numbers, Friday and later in the day - so price is less likely to go higher or lower, the next day can be a bullish entry at the same level, (I revisited my charts before the end of the day at the Singapore open) (noticed there was a potential bullish entry) usdcad - Her favorite currency pair, overnight trading (price in a pannent) (I didn't think it would go above my trendline) (so I placed the order), you see how often it might not go above in London but then it does and its great trading setups, (lots of opportunities if you keep your eyes open and catch them) (33)
*) 62% + Pivot - If a pivot corresponds to a 62% retracement, I will use it as my limit entry order, I allow spreads, I trade major currencies, (2 missed chart examples), I also have a trading platform on fxcm, USDJPY has a bad habit of swinging early (I take them early as they are at very good support/resistance levels), (Japanese intervention may happen, who knows), (34)
*) Be prepared and know your level - Be prepared for these trades before the time frame starts, do your homework by marking support and resistance in the chart, I just want to mark everything so I don't have any rush at the last minute, I want to know where my levels are so I don't have to make a lot of decisions at 1 hour 4 hours or at the last minute of the day, I know where my levels are so that I can make decisions quickly, this will become more important when you start getting into the advanced part, u won't have time then to figure out where the time levels are, if You don't have a limit order, your entries will come and go without you, it's important to have a plan and then have fun with these trades, they are really fun, (the S/R zone is a real fact and quite large) (many people trade it with different ways to do it, Vic Shirley has their differences), (don't think you'll know what's going to happen next, don't take trades just because you think it's going to get their results first, you don't know, may or may not, (USD/CHF she used 30 point stop loss as the stop loss line is above the r3 pivot and 4 hour resistance) (I managed 5 currency pairs that day, AUD/USD, USD/JPY, GBP, EUR/US and USD/CHF) (you don't have enough time to be creative, you just set these things up and trust your system, know what you are doing and know where your levels are) (35).
*) Trade what you see on the platform (know when to close your trade) - platforms/timeframes will differ, days will start at different times, it doesn't matter, trade what you see on the platform, well, again, know when to close your trade, (75 vs his 69, ADR difference on different platform issues) (usdjpy - snicky right - Sometimes it fluctuates early, sometimes it fluctuates late, ADRs don't meet on different platforms, I don't know why I don't care) (the trade was before the G20 meeting, invention, 15 year low, seems like a good opportunity to go long even in a strong downtrend), (first profit, stop loss is met, price just moves sideways - I don't like this - just close the trade - it will save more than loose) (36)
*) Daylight Savings Time - (Autumn - 26th September to 7th November) It is your responsibility to know the London closing time for your desk. UK and North America they usually finish within a week, NZD usually starts first and goes from there, (UK time 4.15 - 4.15, settlement happens), fluctuations are weird when that happens, they can be early, they can be late, just be prepared for them, (November-3rd - the UK has gone back to their standard time, but North America is enjoying their extra hour of daylight (maybe white book, but fomc I'm not holding) (you can trade early swings when the sync is out) (Daylight Savings Week - be careful) (37)
*) Closing remarks - why things work at this time of day - $$ In addition to London settlement and actual closing time, this time is also lunch time in New York, and with the East Coast taking a breather, New York's stock market and US dollar index don't usually move wildly, even day traders, hedge funds and everyone needs to eat sometimes, so the surge happening in London is a vacuum for us. I don't look at stochastics on the 5m chart, I don't look at the MACD that much but I will notice if there is a divergence, I am not a MACD divergence trader, I will look at the news and I will know if it is an intraday risk or an exit risk, I understand general market sentiment and currency pair personality, I spend a lot of time studying the currency pair personality of the currency pairs I watch, I find it very interesting about the factors that move the currency pairs and the countries behind the currencies. This is indeed the case, I am very interested in what is going on behind the national currencies. (38)
*) When scaling up, be more selective, I am scaling up because this works so well, I have never had a trading account with 1% of the market, I don't think ever,
*) Don't take more trades than you can manage, risk is always paramount, I can manage up to 5-6 trades at a time, I will exit the order using a limit price, probably 2:1 or a logical s/r level, when entering the order I think it is logical to close the trade. I'll probably adjust these later because sometimes I don't know how many pairs I'm going to be managing, and I definitely want to be protected while it's running. (38)
*) With this trade you don't want to get greedy, more often than not when I hold more profit than 2:1 or the logical s/r level would have been, the price comes back and stops my trade, so take the setup and take a reasonable profit.
*) I would learn mitigations over time and don't jump to mitigations. (38)
*) This is a counter-trend trade and should be treated as such. (38)
*) US traders - CFTC rules. The same currency pair in the same account cannot be long and short at the same time. Trade the highest probability setup with your large account. She also uses other tactics. That's why 3 accounts. (38)
*) Setting is setting is setting. I really don't care what the news is, who's talking, what the swing is, what the hell is going on, take the set and you'll learn from it, most of them will work out, so just because it's Friday, just because it's Monday, just because there are speakers, just because you know what's coming next - take the set. Choose demo-micro or other. (38)
*) Thank you - I live in Washington State - money grows on the tree of persistence, I climb personal mountains, thank you for joining this webinar, I live in an equine community. (39)
*) p7 - Question - You can take usdx and you can take swissy and put them side by side and you can see swissy go up and if it hasn't hit its ADR and usdx hasn't either then usdx will pull back and usswissy won't pull back , then the USD will surge and reach its ADR, but the Swiss will continue to rise and break out of its ADR and move to the next s/r level. This is an amazing pair, start studying and watching it, if you want to trade the Swiss franc, it is better to wait until the USD reaches its ADR So far. The only currency pair I care about that is relevant to usdx is the Swiss pair, (40)
*) I look at all majors, AUD I only go long, I like NZD (NZD/USD), it has low volatility and respects Fibonacci, these are bid charts, I have no experience on Asian closing time frames, study what makes pairs move, it's almost a sixth sense when you understand how pairs move, fuck correlations - a setup is a setup is a setup. I use demos to learn the platform and work with micro currencies, I prefer real because micro currencies are real, I trade through ibfx, fxcm and mbt mt4 platforms, if gold and silver have big moves, be careful how you trade those commodity currencies (cad aud), oil and gold will tell you everything about commodities, cnbc mute. (40)
*) Focus on the core - simple 10 step staffing, leave the senior staffing for later, learn to walk before you run, she has been working on it for two years with extreme focus so naturally she has a natural feel for it, it doesn't come to you right away, "A lot of people find staffing on paper, it's a world of difference from going out and making money" You need to get out there and make it all worth it. (41)