Smart Money Technique ( SMT ) Divergence is meant to annotate divergences between closely correlated assets. This indicator works by finding local lows and highs for both the current chart symbol and the symbol defined in the settings. It compares both symbols' pivots and evaluates whether they indicate a valid divergence (based on where they're located, whether they make opposing highs/lows, whether a clean connection can be made, etc.).
Take ES_F and NQ_F for example ( S&P 500 and Nasdaq 100 U.S. index futures ). These two names normally track each other very closely (and in the same direction, versus something like DXY ), but if ES_F is steadily rising towards a large institutional level and making higher highs, while NQ_F is approaching a similarly important level and making lower highs on that same timeframe, this would indicate a divergence between the two assets that could foreshadow a “Smart Money Reversal.”
We can look at diverging highs at resistance as potential reason to look for low timeframe reversal structure to get short, and likewise look at diverging lows near support as potential reason to look for reversal structure to get long. As with most trading concepts, the higher timeframes here are key in this analysis. Divergence on a 4h chart can be much more telling than divergence on a 1m chart; but assuming a higher timeframe bias is already formulated, then SMT could simply act as an additional confluence tool to enter a trade.
Phát hành các Ghi chú
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Added alerts for SMT Divergence detection (can specifically alert SMT at highs, lows, or any)
This is repainting. It won't show signal until the price goes reversion so we can't use it as an immediate signal.
ibrahim1311
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Can I use this on free trading view or do I need to purchase a monthly subscription
tradeforopp
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@ibrahim1311, unfortunately I don't know the answer to this - it may be because the default symbol is a CME futures instrument, which I have a paid subscription for. It may be usable for non-premium users who track something like SPY stock instead of ES futures, for example
kashaun1
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Any chance we could get it for EU/DXY too? Thanks
mehmetkabatas
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Thanks man :) Can we add an alarm to this indicator?
tickhead
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legend
ashketch
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🐐
krsone1
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Has anyone noticed a lag in the indi? Today it painted a SMT on M5 nearly 15 min after. Noticed similar behavior on M1. ES vs NQ.