SILVER BULLET HOUR
Understanding the Basics: Ticks, Points, and Pips
Before diving into the ICT Silver Bullet Trading Model, it's crucial to
understand the concept of "ticks," "points," and "pips" and how they relate to
Forex and futures trading.
Ticks, points, and pips are terms used to quantify price movements in
different assets. Ticks are employed in futures trading, points are utilized in
index futures trading, and pips are the standard measurement in forex
trading. It is essential to grasp the distinctions between these terms since
they are used in determining the minimum trade framework for each asset
class.
Minimum trade framework: For index futures, the minimum trade framework
should be 10 points or 40 ticks, while for forex pairs, it should be 15 pips. It
is important to note that this framework represents the best case price
delivery that you expect to see, not your actual trade entry to exit range.
*The ICT Silver Bullet Trade Setup is an algorithmic trading model based on
time that can be applied to all asset classes. This setup operates within a
minimum trade framework, seeking trades that do not require the highest
level of entry or exit precision. Its purpose is to identify liquidity imbalances
and identify optimal trade entry points.
It's important to remember that successful trading requires patience and
discipline. Within the ICT Silver Bullet Trade Setup, there are several types of
setups that are worth noting. These setups provide crucial frameworks for
identifying high probability trades. Here are some of the setups to keep in
mind:
1. Previous day high or low as draw on liquidity: If the market is bullish,
there will be buy stops or buy sell liquidity resting around
yesterday's high. This means that we would be looking for a run to
the previous day's high. Vice versa if the market is bearish. We
would look for potential setups that would expand down into that
liquidity.
2. Previous weekly high or low as draw on liquidity: If we are bullish,
we would look for a run above the previous week's high. For high
that has already been rated that morning, it may not be the ideal
scenario. So, it might require you to look at a higher timeframe
liquidity pool or inefficiency above price if you're bullish.
3. Returning to a current or old new week opening gap: This means
that the market is returning to a gap that was not filled. This is a
good opportunity to look for a potential setup.
4. Classic ICT optimal trade entry: This setup is based on the concept of
"smart money" and how they move the market. If you can identify the
smart money's activity, you can enter the market at an optimal price.
5. Fair value gap: This is when the market opens above or below fair
value. If the market opens above fair value, it is a good opportunity
to look for short setups. If the market opens below fair value, it is a
good opportunity to look for long setups.
6. Determining the next most likely draw in price action: This is the
most important skillset to focus on. All the entries and accents are
less important because you don't know where price is trying to go
from the time you're sitting and looking at your charts. The main
emphasis is determining the next most likely draw in the price
action. That's the number one goal for all of my students.
General ideas
We need to establish a model based on "time," specifically targeting a
particular session and promoting repeatable setups.
This opportunity arises daily within one of the sessions. It won't always be
available (e.g., LOKZ), so patience is essential.
The framework represents the best-case price target you expect to witness,
NOT your actual trade entry to your take-profit (TP) level.
If you were to capture 100% of the move from a high-probability trade to the
DOL, this would be the potential framework.
Conditions for the setup
Continuously ask ourselves where the next DOL is on the chart, as that will be
our goal. "WHERE IS THE PRICE LIKELY TO GO NEXT."
It's not about waiting for it to arrive and observing a reaction (although that's
a possibility) for a reversal or continuation. Instead, we trade in favor of the
market bias, aligning our narrative with one of these DOLs, which becomes
the TP or objective of our trades.
The ICT Silver Bullet Setups: A Time-Based Approach
What distinguishes the ICT Silver Bullet Trading Model is its time-based
approach. The model's setups are associated with specific 60-minute intervals
or windows every trading day. These setups include:
1. The London Open Silver Bullet (3 AM — 4 AM New York local time)
This setup revolves around a classic ICT Fair Value Gap (FVG) that forms
between 3 AM and 4 AM. The objective is to determine the likely
direction of the price next. This setup requires a thorough
understanding of the market and the ability to accurately predict price
movements.
It is recommended to adjust your charts to New York time.
1. We will search for FVG within this time frame.
2. The target will be a clear DOL.
The trade can commence during the London Open Silver Bullet time slot but
may not necessarily begin precisely at that time.
Example entry justifying a minimum +2RR with a minimum of "10 handles."
2. The AM Session Silver Bullet (10 AM — 11 AM New York local time)
In the ICT Silver Bullet Trade Setup, the AM Session is focused on the 10
o'clock to 11 o'clock time window. During this time frame, we wait for the
market to be bearish/bullish with relative equal lows/highs and sell/buy side
resting below/above. This is followed by a fair value gap, which is a
bearish/bullish FVG. When the market trades up/down into this gap, we can
sell/buy short.
It is important to note that the trade is many times held in duration longer
than the window that the framework and entry is derived from. This means
that you're looking for the setup to form to get you into the trade within the
scope of 10 o'clock to 11 o'clock near local time. Shorting/Long into the FVG
and covering at the old low/high allows for at least 5 handles. The key
takeaway is to focus on the skill set first and look for high probability trades
using the framework.
This strategy demands a deep understanding of the market dynamics and the
ability to make swift decisions based on market movements.
1.
Every day between 10am & 11am EST, identify an obvious pool of
liquidity that has not been tapped into or engaged.
2.
Wait for displacement (use 1-3-5m) towards liquidity pool between that
time. Find a FVG (FVG has to be opposite the targeted liquidity pool).
3.
Wait for price to trade back into FVG and then reprice out of the FVG
towards the targeted pool of liquidity.
3. The PM Session Silver Bullet (2 PM — 3 PM New York local time).
Identify an obvious pool of liquidity that has not been tapped into or
engaged. I recommend watching short-term liquidity level around 1:30-2:00
PM.
Wait for displacement (use 1-3-5m) towards liquidity pool between that time.
Find a FVG (FVG has to be opposite the targeted liquidity pool).
Wait for price to trade back into FVG and then reprice out of the FVG towards
the targeted pool of liquidity.
The Power of the ICT Silver Bullet Trading Model
The ICT Silver Bullet Trading Model is a highly consistent and high-probability
model. It necessitates discipline, focus, and a deep understanding of the
setups that occur in price action. If you can master this model, you won't need
to rely on external sources for trading advice. You'll develop an independent
mindset, and your analysis will be uniquely yours.
Every single market, every single trading day, will offer one of these setups.
Therefore, if you focus on just one market, you can sustain yourself. While
there will be losing trades, overall, you can achieve success with a single
market. The ICT Silver Bullet Trading Model empowers you to capitalize on
time-based setups and take advantage of the market's dynamics during
specific sessions. By identifying key levels, understanding market biases, and
executing trades based on these setups, you can increase your trading
consistency and improve your probabilities of success.
Remember to remain disciplined and patient, as these setups may not occur
every day or in every session. The ability to adapt to market conditions and
make informed decisions based on price action will be critical to your trading
success.