Description
Smart Money Technique (SMT) Divergence is an advanced institutional trading concept where correlated instruments fail to confirm each other's price movements. When one asset makes a higher high while its correlated pair makes a lower high (or vice versa), it signals potential market manipulation and smart money positioning - often preceding major reversals.
Key Features
π― Automatic Pair Detection
- Zero Configuration Required: Automatically detects and loads the correlated pair for your current symbol
- Extensive Coverage: Supports 30+ pre-configured pairs across:
- Forex Majors (EUR/USD β GBP/USD, AUD/USD β NZD/USD, EUR/JPY β GBP/JPY, etc.)
- Precious Metals (Gold β Silver, XAU/USD β XAG/USD)
- Stock Indices (US30 β NAS100, GER40 β UK100, SPX500 β NAS100)
- Cryptocurrencies (BTC/USD β ETH/USD)
- Broker-Agnostic: Intelligent symbol normalization handles different broker naming conventions (e.g., GBPUSD, GBPUSDm, GBPUSD.r)
π Dual SMT Detection Modes
Bearish SMT (Sell Signals)
- Detects when main chart makes Higher High while correlated pair makes Lower High
- Detects when main chart makes Lower High while correlated pair makes Higher High
- Signals potential downside reversal and smart money distribution
Bullish SMT (Buy Signals)
- Detects when main chart makes Lower Low while correlated pair makes Higher Low
- Detects when main chart makes Higher Low while correlated pair makes Lower Low
- Signals potential upside reversal and smart money accumulation
βοΈ Fully Customizable Detection Engine
Swing Detection Parameters
- Swing Lookback: Adjust sensitivity (2-50 bars) to capture major or minor swing points
- Min Bars Between Swings: Filter out noise by requiring minimum spacing between signals
- Toggle Modes: Enable/disable bearish or bullish SMT detection independently
Manual Override Option
- Specify any custom correlated symbol if auto-detection doesn't match your needs
- Perfect for exotic pairs or custom correlation strategies
π¨ Professional Visual System
Clear Signal Presentation
- Trend lines connecting swing points with customizable thickness
- Directional arrows (β/β) marking exact entry zones
- Color-coded signals (customizable Red/Lime defaults)
- Optional detailed labels showing:
- Signal type (Bearish/Bullish SMT)
- Price structure for both instruments (HH, LH, LL, HL)
- Exact correlation comparison
Clean Chart Interface
- Non-intrusive status indicator showing active monitoring pairs
- Smart placement of labels to avoid price clutter
- All visual elements fully customizable
π Real-Time Monitoring
- Processes every bar close for swing point detection
- Compares price structures between correlated instruments in real-time
- Immediate visual alerts when SMT divergence conditions are met
- Console logging for trade journal and review purposes
Supported Pairs (Auto-Detect)
Forex: EUR/USD β GBP/USD, AUD/USD β NZD/USD, EUR/JPY β GBP/JPY, AUD/JPY β NZD/JPY, USD/CAD β USD/CHF
Metals: XAU/USD β XAG/USD, Gold β Silver, XAU/EUR β XAG/EUR
Indices: US30 β NAS100, SPX500 β NAS100, GER40 β UK100, and more
Crypto: BTC/USD β ETH/USD, BTC/USDT β ETH/USDT
Summary
The indicator monitors price structures to identify divergences where one assetβs price movement does not confirm that of its correlated pair, signaling potential smart money positioning and upcoming reversals. It features dual detection modes for bearish (sell) and bullish (buy) SMT divergences, with customizable swing detection parameters such as lookback period and minimum bars between swings. Users can manually specify correlated symbols for custom strategies or exotic pairs.
Visual elements include trend lines connecting swing points, directional arrows marking entry zones, color-coded signals, and optional detailed labels showing signal type and price structure. The interface is designed to be clean and non-intrusive, with smart label placement and full customization options. SMT Divergence processes every bar close for real-time monitoring, providing immediate visual alerts and console logging for trade review. It supports symbol normalization to accommodate different broker naming conventions.