Multi-Asset SMT Divergence

The Multi-Asset SMT Divergence indicator identifies when correlated assets fail to confirm each other's swing structure, providing automated comparison across major ICT-relevant triads to detect Smart Money Technique (SMT) signals.

Usage

The Usage section describes how the script can be used to identify trend exhaustion or institutional accumulation/distribution. SMT divergence occurs when one asset makes a higher high (or lower low) while a correlated asset fails to do so. This indicator automates this process by comparing the chart symbol against up to three other assets.

The indicator features two primary modes:

• Auto Mode: Automatically detects the appropriate correlated triad based on your current chart symbol. For example, if you are viewing NQ, it will automatically pull data for ES, YM, and RTY. It supports equities, metals, forex, crypto, energy, and treasury bonds.
• Manual Mode: Allows users to input up to three custom symbols. This is useful for niche correlations or specific cross-asset strategies not covered in the auto-detection list.

The tool includes a Sweep Mode, which aligns with ICT concepts by only firing a signal when the primary asset raids a liquidity level (breaks a previous high/low) while the comparison asset fails to take that same level.

Details

The script utilizes request.security to fetch data from correlated markets and identifies swing structures using pivot points. It is designed to be futures/spot aware; when used on a futures chart, it routes comparisons to futures contracts rather than spot feeds to maintain data integrity and avoid false signals caused by regulated vs. unregulated price differences.

Key internal mechanics include:

• Invert Logic: For inverse-correlated pairs (e.g., DXY vs. Gold), the script can flip the divergence logic to ensure "higher high vs. lower high" is interpreted correctly.
• Dual-Tier Detection: The script runs a main detection pass and an optional "Micro SMT" pass with a shorter lookback to catch short-duration deviations without losing the context of larger swings.
• Liquidity Tracking: In Sweep Mode, the script maintains an internal array of recent liquidity levels to ensure signals are only generated during valid price runs.

Settings

Core Settings

• Mode: Select between "Auto" (automatic triad detection) and "Manual" (custom symbol input).
• Symbol 1/2/3: Custom symbols for comparison (Manual mode only).
• Invert 1/2/3: Flips the divergence logic for inverse-correlated assets.
• Pivot Lookback: The number of bars on each side required to confirm a swing point. Higher values filter for more significant structures.
• Sweep Mode: When enabled, signals only trigger when the primary asset sweeps a previous high/low that the secondary asset does not.
• Real-time Detection: If enabled, detection occurs as soon as a pivot forms without waiting for right-side confirmation (may repaint).
• Candle Validation: Requires a bearish candle for bearish SMT and a bullish candle for bullish SMT.
• Remove Broken SMTs: Deletes visual SMT markings if price closes through the SMT level.
• Show Micro SMTs: Enables a second detection pass with a smaller pivot lookback.

Visual Settings

• Show SMT Lines/Labels: Toggles the visibility of divergence lines and text callouts.
• Bullish/Bearish Color: Sets the color for long and short signals.
• Line Style: Independent styling (Solid, Dashed, Dotted) for each of the three comparison symbols.

FAQ

How do I interpret the SMT labels on my chart? The labels appear at confirmed pivot points. The text within the label lists all assets that diverged from the primary chart symbol at that specific price point.

Why are some SMT lines removed after they appear? If "Remove Broken SMTs" is enabled, the indicator will delete lines and labels if price action closes through the level, indicating the SMT setup has been invalidated by price momentum.

How can I access the Multi-Asset SMT Divergence? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.