SMT Divergence for Crypto Indicator MT5
Smart Money Technique Divergence for Crypto Indicator MT5
The Smart Money Divergence (SMT) Indicator for MetaTrader 5 is specifically developed to recognize divergence patterns using advanced trading methodologies. It capitalizes on price deviations among closely correlated assets to forecast potential market movements.
This tool is highly effective in identifying divergence signals between various interconnected assets, such as digital currencies or financial indices. These anomalies frequently indicate a possible trend reversal or diminishing momentum, equipping traders with valuable market insights.
SMT Divergence Crypto Indicator Specifications Table
The following table outlines the key specifications of the Smart Money Technique Divergence for Crypto Indicator MT5:
| Category | ICT – Smart Money – Market Strength |
| Platform | MetaTrader 5 |
| Skill Level | Advanced |
| Indicator Type | Breakout – Range |
| Timeframe | Multi Timeframe |
| Trading Style | Day Trading |
| Market | All Markets |
Indicator Overview
This SMT Divergence tool analyzes price fluctuations across three correlated financial assets, pinpointing irregularities in their movement. It works particularly well for assets like BTC, ETH, and BCH, which generally follow similar trends. When these assets display contradictory price action, it often signals institutional activity and potential trend validation.
Uptrend Conditions
In the case of an uptrend scenario, three 5-minute price charts for BTC/USD, BCH/USD, and ETH/USD reveal key market behavior. If Bitcoin and Bitcoin Cash register lower lows while Ethereum forms a higher high at the indicator’s red line, it suggests a weakening bearish trend, potentially signaling an upcoming bullish move.
Downtrend Conditions
A 15-minute chart comparing BTC/USD, BCH/USD, and ETH/USD highlights a bearish setup. When Bitcoin and Bitcoin Cash reach the green level and indicate positive divergence, the fading bullish trend suggests a likely market downturn across all three digital assets.
Indicator Settings
The settings for the SMT Divergence Indicator offer customization options for traders:
- Chart and object color settings: Customize color themes;
- First asset selection: Choose the first trading pair;
- Second asset selection: Define the second market pair;
- Third asset selection: Select the third asset for comparison;
- Identifying trend divergence: Spot divergences in trends;
- Max swing point distance for divergence: Adjust the gap between swing points;
- Detecting high/low divergence: Recognize major highs and lows;
- Identifying the dominant asset: Determine the leading or lagging asset in the setup.
Conclusion
The SMT Divergence Indicator is an essential analytical tool for detecting trend shifts and uncovering market inefficiencies. By tracking divergence across major cryptocurrencies, it provides traders with actionable insights, helping them anticipate potential price corrections and reversal points effectively.
