SMT divergence indicator
- Indicators
- Ehsan Ashoori
- Version: 1.0
This SMT (Smart Money Technique) divergence indicator identifies discrepancies in price movement between two different trading symbols, helping traders detect potential market reversals. This tool compares the price action of two correlated assets, such as two currency pairs or indices, to spot divergences where one asset's price moves in the opposite direction of the other. For example, while one symbol may be making higher highs, the other might be making lower highs, signaling a divergence. This imbalance indicates that one market is either lagging or leading, providing clues about potential price reversals or shifts in market sentiment. By highlighting these divergences, the SMT indicator helps traders capitalize on inefficiencies in the market, allowing for more informed trading decisions.