Silver Bullet Strategy: Entry Requirements 📈 Long Position Requirements:
Determine the Market Bias Confirm a bullish market trend. Look for buy-side liquidity (e.g., above previous day's/week's highs).
Identify a Fair Value Gap (FVG) Spot an FVG below the current price. Ensure the FVG is opposite to the targeted liquidity pool (e.g., below price when targeting buy-side liquidity above).
Observe Displacement Look for a strong upward move toward the targeted liquidity pool. Use lower timeframes (1m, 3m, or 5m) for confirmation.
Price Retracement into FVG Wait for a retracement into the FVG on the higher timeframe. Confirm upward repricing from the FVG.
Lower Timeframe Confirmation Switch to 1m or 3m charts after retracement. Identify a second bullish FVG within the retracement. Enter long when price starts to move upward from the second FVG.
Target the Liquidity Pool Hold the position until price taps into the targeted buy-side liquidity.
📉 Short Position Requirements:
Determine the Market Bias Confirm a bearish market trend. Look for sell-side liquidity (e.g., below previous day's/week's lows).
Identify a Fair Value Gap (FVG) Spot an FVG above the current price. Ensure the FVG is opposite to the targeted liquidity pool (e.g., above price when targeting sell-side liquidity below).
Observe Displacement Look for a strong downward move toward the targeted liquidity pool. Use lower timeframes (1m, 3m, or 5m) for confirmation.
Price Retracement into FVG Wait for a retracement into the FVG on the higher timeframe. Confirm downward repricing from the FVG.
Lower Timeframe Confirmation Switch to 1m or 3m charts after retracement. Identify a second bearish FVG within the retracement. Enter short when price starts to move downward from the second FVG.
Target the Liquidity Pool Hold the position until price taps into the targeted sell-side liquidity.
💡 Key Notes:
Liquidity Pool: Target unengaged liquidity (previous highs/lows). Timing: Focus on setups during the 10 AM – 11 AM EST window. FVG Confirmation: Utilize both higher and lower timeframe FVGs for precise entries. Skill Emphasis: Master price action and liquidity concepts over chasing profits.