Smart Money Techniques (SMT) Divergence by Rise

Smart Money Divergence - Early Reversal Indicator

This sophisticated indicator identifies and analyzes Smart Money Divergence patterns by systematically examining pivot point relationships between a primary asset and a secondary correlated instrument.

The indicator establishes divergence signals through precise algorithmic detection when pivot pairs exhibit opposing directional patterns between the primary and secondary assets. This sophisticated analysis reveals institutional positioning discrepancies that often precede significant market reversals.

Following divergence confirmation, the indicator provides comprehensive visualization tools and optional alert systems to capitalize on these high-probability trading opportunities. Advanced filtering capabilities allow traders to customize sensitivity levels, timeframe parameters, and styling to align with their specific trading methodology.

This powerful solution delivers unmatched functionality for traders seeking to identify and exploit Smart Money positioning through multi-asset divergence analysis. With its robust detection algorithms and granular customization options, it provides capabilities that surpass conventional divergence indicators by incorporating institutional flow analysis principles highly regarded in professional trading circles.

What is Smart Money Divergence?
Smart Money Divergence is another name for Smart Money Techniques (SMT). These patterns appear when comparing swing points, of adjustable strength, between correlated assets...

When an asset makes a higher high while the other makes a lower high.

When an asset makes a lower low while the other makes a higher low.

Potential Divergence
This indicator allows users to see potential SMT before the second swing point of the pair forms. It is showcased with different styling until it's confirmation, when enough bars pass based on the user-defined strength parameter.


Multi-Timeframe
Our tool allows traders to have higher/lower-timeframe divergences displayed on the chart of their choice, further automating their trading strategies.


Input Settings:
This tool offers a lot of customizable options, which could be overwhelming to some users. Below you will find an in-depth definition of every input's purpose to complement the tooltips that can be found directly in the indicator's settings.

Symbol 📊
This parameter let's users define the asset used in search of SMT divergence. We recommend using correlated assets, like NASDAQ100 with S&P500 or EURUSD with GBPUSD...

Timeframe 🔧
This is where users choose, if they wish, to set a different timeframe which will be utilized when looking for divergences.

Mode ⚙️

Default -> Displays all SMTs.

Bullish -> Displays only bullish SMTs using low pivots.

Bearish -> Displays only bearish SMTs using high pivots.

Historical 📜
This indicator allows users to display only a specific amount of SMTs... The historical input will display the specified amount of divergences up to 25, which will then showcase all available SMTs.

Parameters
This section defines the main parameters uses in establishing and managing SMT divergences.

• Pivot Strength -> Number of bars to the left and right for pivot considerations.
  
• Pivot Lookback -> Amount of past pivots to maintain in memory.
  
• Allow Time Difference? -> Allow up to one bar difference when comparing pivots.
  
• Time Filters -> The indicator allows for up to two time filters...
  

  Checkbox -> Activate this time filter.

  Time Range-> Define the time range which will only validate SMTs during.

• Remove After Invalidation? -> Remove drawings from invalidated SMTs.
  

Style

• Colors for bullish and bearish SMTs respectively.
  
• Line styling and width
  
• Potential Divergence -> checkbox and line styling.
  

Text

• Label Contents:
  

  Long -> "Smart Money Divergence"

  Short -> "SMT"

  None -> No text.

• Include Symbol? -> Include the comparing asset's symbol within label text.
  
• Size.
  
• Font (Default or Monospace) and Format (None, Italic or Bold).
  
• Align -> vertical and horizontal positioning.
  

This indicator is for educational and informational purposes only. Past performance and historical patterns do not guarantee future results. Trading involves substantial risk of loss and is not suitable for all investors. Always conduct your own analysis and consider your financial situation before making any trading decisions. The identification of patterns does not constitute trading advice.