1 Candle SMT Divergence

The 1 Candle SMT Divergence indicator is a multi-symbol scanner designed to identify Smart Money Theory (SMT) divergences across multiple timeframes simultaneously. It allows traders to detect institutional market inefficiencies by comparing price action between correlated assets, highlighting when one symbol fails to confirm the high or low of another.

Usage

The indicator is primarily used to spot trend reversals or continuations by identifying "cracks" in correlation. A standard SMT divergence occurs when one asset makes a higher high while a correlated asset makes a lower high, or when one makes a lower low while the other makes a higher low.

• Multi-Symbol Comparison: You can configure up to 10 different symbol sets. Each set consists of a "From" symbol and up to two "To" symbols for a 3-way correlation check.
• Timeframe Scanning: The tool scans up to 6 different timeframes (e.g., Chart, 1H, 4H, Daily, Weekly). If a divergence is detected on a higher timeframe, it is displayed in the on-screen table.
• Visual Interpretation:
  • High Divergence: Occurs at price peaks and is typically bearish.
  • Low Divergence: Occurs at price troughs and is typically bullish.
  • Table Status: The table color-codes results based on whether a divergence exists on one or both correlation pairs for a specific timeframe.

Details

This tool utilizes request.security with dynamic_requests = true to efficiently fetch data for multiple symbols and timeframes. It specifically looks at the relationship between the current candle and the previous candle (1-candle SMT).

The logic for detection is as follows:

• Bearish SMT: Symbol A breaks the previous candle's high, but Symbol B fails to break its previous candle's high.
• Bullish SMT: Symbol A breaks the previous candle's low, but Symbol B fails to break its previous candle's low.

The script automatically filters out timeframes lower than the current chart to maintain analytical relevance and provides optional trend lines on the chart to visualize where the divergence occurred.

Settings

Symbols

• From symbol - To first symbol - To second symbol: Sets the primary asset and the two correlated assets to compare against.
• Enable To Pair B: A checkbox to toggle whether the second correlation symbol should be included in the scan.

Screeners

• Enable Screeners Table: Toggles the visibility of the multi-timeframe dashboard.
• TF1 - TF6: Configurable timeframe slots for the scanner.

Line Styles

• Show Lines: Toggles the drawing of divergence lines on the chart.
• Lines Limit: Determines the maximum number of historical divergence lines to display.
• High/Low Div Color: Customizes the colors for bearish and bullish signals.

Table Styles

• Position: Moves the dashboard to different corners or sides of the chart.
• Text Size: Adjusts the scaling of the table text for better readability.

FAQ

How do I interpret a "Both Div" signal in the table? A "Both Div" signal indicates that the primary symbol is showing an SMT divergence against both of the configured correlation symbols simultaneously, often suggesting a higher probability move.

Why are some timeframes not showing in the table? The indicator is designed to only show timeframes that are equal to or higher than the current chart timeframe to prevent "lower timeframe noise" from cluttering higher timeframe analysis.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.