ICT Silver Bullet with signals

6 нояб. 2023 г.

The "ICT Silver Bullet with signals" indicator (inspired from the lectures of "The Inner Circle Trader" (ICT)),
goes a step further than the ICT Silver Bullet publication, which I made for LuxAlgo :

• uses HTF candles
• instant drawing of Support & Resistance (S/R) lines when price retraces into FVG
• NWOG - NDOG S/R lines
• signals

The Silver Bullet (SB) window which is a specific 1-hour interval where a Fair Value Gap (FVG) pattern can be formed.
When price goes back to the FVG, without breaking it, Support & Resistance lines will be drawn immediately.



There are 3 different Silver Bullet windows (New York local time):
The London Open Silver Bullet (03 AM — 04 AM ~ 03:00 — 04:00)
The   AM  Session Silver Bullet (10 AM — 11 AM ~ 10:00 — 11:00)
The   PM  Session Silver Bullet (02 PM — 03 PM ~ 14:00 — 15:00)


🔶 USAGE

This technique can visualise potential support/resistance lines, which can be used as targets.

The script contains 2 main components:
• forming of a Fair Value Gap (FVG)
• drawing support/resistance (S/R) lines


🔹 Forming of FVG

When HTF candles forms an FVG, the FVG will be drawn at the end (close) of the last HTF candle.
To make it easier to visualise the 2 HTF candles that form the FVG, you can enable
• SHOW -> HTF candles


During the SB session, when a FVG is broken, the FVG will be removed, together with its S/R lines.
The same goes if price did not retrace into FVG at the last bar of the SB session



Only exception is when "Remove broken FVG's" is disabled.
In this case a FVG can be broken, as long as price bounces back before the end of the SB session, it will remain to be visible:




🔹 Drawing support/resistance lines

S/R target lines are drawn immediately when price retraces into the FVG.
They will remain updated until they are broken (target hit)


Potential S/R lines are formed by:
• previous swings (swing settings (left-right)
• New Week Opening Gap (NWOG): close on Friday       -  weekly open
• New  Day   Opening Gap (NWOG): close previous day -  current daily open

Only non-broken lines are included.

Broken =
• minimum  of open and close below potential S/R line
• maximum of open and close above potential S/R line

NDOG lines are coloured fuchsia (as in the ICT lectures), NWOG are coloured white (darkmode) or black (lightmode ~ ICT lectures)
Swing line colour can be set as desired.

Here S/R includes NDOG lines:


The same situation, with "Extend Target-lines to their source" enabled:


Here with NWOG lines:


This publication contains a "Minimum Trade Framework (mTFW)", which represents the best-case expected price delivery, this is not your actual trade entry - exit range.

• 40 ticks for index futures or indices
• 15 pips for Forex pairs

The minimum distance (if applicable) can be shown by enabling "Show" - "Minimum Trade Framework" -> blue arrow from close to mTFW

Potential S/R lines needs to be higher (bullish) or lower (bearish) than mTFW.

🔶 SETTINGS

(check USAGE for deeper insights and explanation)

🔹 Only last x bars: when enabled, the script will do most of the calculations at these last x candles, potentially this can speeds calculations.

🔹 Swing settings (left-right): Sets the length, which will set the lookback period/sensitivity of the ZigZag patterns (which directs the trend and points for S/R lines)

🔹 FVG

• HTF (minutes): 1-15 minutes.
  

  
  • When the chart TF is equal of higher, calculations are based on current TF.
  • Chart TF > 15 minutes will give the warning: "Please use a timeframe <= 15 minutes".
  

• Remove broken FVG's: when enabled the script will remove FVG (+ associated S/R lines) immediately when FVG is broken at opposite direction.
  

  FVG's still will be automatically removed at the end of the SB session, when there is no retrace, together with associated S/R lines,...

• ~ trend: Only include FVG in the same direction as the current trend
  

  Note -> when set 'right' (swing setting) rather high ( > 3), he trend change will be delayed as well (default 'right' max 5)

• Extend: extend FVG to max right side of SB session
  

🔹 Targets – support/resistance

• Extend Target-lines to their source: extend lines to their origin
  
• Colours (Swing S/R lines)
  

🔹 Show

• SB session: show lines and labels of SB session (+ colour)
  

  • Labels can be disabled separately in the 'Style' section, colour is set at the 'Inputs' section

• Trend : Show trend (ZigZag, coloured ~ trend)
  
• HTF candles: Show the 2 HTF candles that form the FVG
  
• Minimum Trade Framework: blue arrow (if applicable)
  

🔶 ALERTS

There are 4 signals provided (bullish/bearish):

• FVG Formed
  
• FVG Retrace
  
• Target reached
  
• FVG cancelled
  

You can choose between dynamic alerts - only 1 alert needs to be set for all signals, or you can set specific alerts as desired.


💜 PURPLE BARS 😈

• Since TradingView has chosen to give away our precious Purple coloured Wizard Badge, bars are coloured purple 😊😉