Hidden SMT Divergence ICT Indicator MT4
Hidden SMT Divergence Indicator for MT4
The Hidden SMT Divergence Indicator is a powerful analytical tool designed to detect divergences between three different trading instruments. Based on the Smart Money Trading (SMT) concept, this indicator helps traders identify potential price imbalances and liquidity shifts.
By marking divergences directly on the chart, it provides a visual representation of market inefficiencies, enabling traders to better understand institutional trading behavior.
Hidden SMT Divergence Indicator Specifications
Below is a summary of the key details regarding the Hidden SMT Divergence Indicator:
Category | ICT - Smart Money - Liquidity |
Platform | MetaTrader 4 |
Skill Level | Advanced |
Indicator Type | Reversal - Continuation |
Timeframe | Multi-timeframe |
Trading Style | Intraday Trading |
Market | Stocks |
Understanding Hidden SMT Divergence
A hidden SMT divergence occurs when one financial instrument makes a new high or low, while another correlated asset fails to do the same. This divergence often signals underlying strength or weakness in the market and can be used to anticipate future price movements in both bullish and bearish conditions.
Bullish Scenario
When analyzing a 1-hour timeframe of the DJI, SP500, and ND100, the indicator identifies key divergence points.
For instance, if DJI and SP500 create lower lows, but ND100 holds at equal lows, this indicates a bullish divergence, suggesting a possible upward reversal.
Bearish Scenario
In a bearish setup, the indicator effectively identifies weak market structures.
For example, if DJI and SP500 form higher highs, while ND100 produces lower highs, this divergence hints at a weakening uptrend and a potential price drop.
Indicator Settings
The Hidden SMT Divergence Indicator comes with customizable settings that allow traders to adapt the tool to their specific trading strategies:
- First Symbol – Selects the primary trading instrument
- Second Symbol – Defines the secondary asset for comparison
- Third Symbol – Chooses the third instrument to track divergence
- Finding the Pushed Symbol – Enables automatic identification of the diverging asset
Conclusion
The Hidden SMT Divergence Indicator is an essential tool for traders looking to detect price discrepancies across multiple assets. By plotting divergences directly on the chart, it enhances market insight and provides a structured approach to liquidity analysis.
As an MT4 liquidity indicator, it helps traders pinpoint significant market inefficiencies, improving decision-making in trend analysis and forecasting.
To activate the indicator, ensure it is applied to the chart of the first chosen instrument for accurate results.