SMT - SMART MONEY TECHNIQUE

WHAT IS SMT DIVERGENCE ?

SMT Divergence (Smart Money Technique Divergence) is a concept used in trading, particularly in Forex and Futures, to identify potential market reversals or liquidity grabs by institutional traders (smart money). It occurs when two correlated assets or pairs diverge in price movement, signaling inefficiencies or manipulation in the market.

IN EASY WAY :

A divergence between two correlated assets don’t follow each other .

Types of SMT Divergence:

  1. Bullish SMT Divergence

    One correlated pair makes a lower low, while the other makes a higher low.

  2. Bearish SMT Divergence

    One correlated pair makes a higher high, while the other makes a lower high.

BULLISH SMT

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BEARISH SMT

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Commonly Used SMT Pair Comparisons: