SMT Divergence

Detects when your instrument and a correlated asset diverge at swing extremes — a reversal warning signal.

Overview

SMT (Smart Money Technique) Divergence identifies when your instrument makes a new swing extreme that a correlated asset fails to confirm. This divergence often signals institutional positioning and potential reversals.

The indicator employs dual pivot detection passes — primary (tighter) and secondary (wider) lookback periods — to identify both minor and significant structural divergences simultaneously.

Settings

Primary Pivot Lookback — Integer, minimum 2 (default: 5) Controls the pivot detection window for primary swing identification. Smaller values detect more frequent swings.

Secondary Pivot Lookback — Integer, minimum 2 (default: 8) Controls the pivot detection window for secondary swing identification. Larger values detect fewer but more structurally significant extremes.

Comparison Symbol — Symbol (default: ES1!) Specifies the correlated asset for comparison. Use NQ1! when trading ES, and ES1! when trading NQ. Micros require MES1! or MNQ1!.

Only Display Significant — Toggle (default: off) When enabled, displays only secondary pivot lookback divergences, reducing noise while emphasizing structural significance.

Styling

Line Color — Color picker (default: white)

Line Width — Integer, 1–4 (default: 1)

Line Style — Solid / Dashed / Dotted (default: Dashed)

Label Size — Auto / Tiny / Small / Normal / Large / Huge (default: Small)

How We Use It

SMT Divergence is our correlated-asset confirmation tool. We flip the comparison symbol based on which contract we're actively trading, and use divergences as reversal warnings — especially when they coincide with rejection blocks or Fair Value Gaps.