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SMT Divergence,Smart Money Technique Divergence,This concept was popularized by the Inner Circle Trader (ICT) and has become an essential tool for traders looking to identify institutional positioning and smart money footprints in the market. By recognizing these divergences, retail traders can gain insights into potential market manipulation and align their trades with institutional order flow.
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SMT Divergence (Smart Money Technique Divergence) is a powerful trading concept within the Smart Money Concept (SMC) and Inner Circle Trader (ICT) methodologies. It identifies situations where two correlated assets exhibit opposing market structure or price movement patterns. This divergence between assets that typically move together (or oppositely for negatively correlated pairs) provides insights into potential market reversals.Unlike traditional technical indicator divergences (such as RSI or MACD divergence), SMT Divergence compares the price action between two related financial instruments. It operates on the principle that when correlated assets fail to confirm each other's movements, it often signals a weakening trend and potential reversal in the near future.
This concept was popularized by the Inner Circle Trader (ICT) and has become an essential tool for traders looking to identify institutional positioning and smart money footprints in the market. By recognizing these divergences, retail traders can gain insights into potential market manipulation and align their trades with institutional order flow.
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Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.