SMT Divergence Currency Indicator MT4
- Indicators
- Eda Kaya
- Version: 2.1
SMT Divergence EU-GU-DXY Indicator MT4
The SMT Divergence EU-GU-DXY Indicator for MetaTrader 4 is a powerful analytical tool designed to detect price divergence among three major Forex pairs. It identifies discrepancies between EUR/USD, GBP/USD, and the U.S. Dollar Index (DXY), highlighting potential trading opportunities through color-coded signals.
«Indicator Installation & User Guide»
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Specifications of the SMT Divergence EU-GU-DXY Indicator
The following table presents the core features and specifications of this indicator:
Category | ICT - Smart Money - Liquidity |
Platform | MetaTrader 4 |
Skill Level | Advanced |
Indicator Type | Reversal - Continuation |
Timeframe | Multi-timeframe |
Trading Style | Day Trading |
Market | Forex |
Overview of the SMT Divergence Indicator
Typically, EUR/USD and GBP/USD exhibit a positive correlation, while the U.S. Dollar Index (DXY) often moves in the opposite direction. An SMT divergence occurs when these assets break their usual correlation, indicating a shift in market structure.
Bullish Market Conditions
On a 1-hour timeframe, an SMT divergence emerges when EUR/USD surpasses a resistance level, but GBP/USD fails to break above the same zone. This signals a potential bullish setup, offering traders an opportunity to enter long positions.
Conversely, a bearish SMT divergence forms when EUR/USD and DXY breach their support levels, while GBP/USD remains above its support zone. This suggests a possible market decline.
Indicator Settings
The SMT Divergence Indicator provides several customization options to fine-tune analysis:
- First Symbol: Select the primary asset for comparison
- Second Symbol: Define the secondary trading pair
- Third Symbol: Choose the third correlated asset
- Trend Divergence Detection: Enable or disable trend divergence alerts
- Swing Point Distance: Adjust the maximum distance between detected swing points
- High/Low Divergence Detection: Activate detection for high/low divergences
- Pushed Symbol Detection: Identify the asset experiencing the strongest buying or selling pressure
Conclusion
The SMT Divergence EU-GU-DXY Indicator is an essential tool for traders who utilize Smart Money Trading (SMT) strategies. By tracking divergence patterns between EUR/USD, GBP/USD, and DXY, this indicator provides valuable insights into liquidity shifts and potential market reversals. Its application in MetaTrader 4 enhances decision-making for traders seeking to exploit inefficiencies in price movement.