Hidden SMT Divergence ICT 01 HSMT SMC Technique

The Hidden SMT Divergence ICT 01 HSMT SMC Technique indicator identifies discrepancies between correlated assets using closing prices to reveal institutional market shifts and potential trend reversals.

Usage

The Usage section focuses on identifying divergences between a primary asset and a secondary correlated asset to anticipate market moves. Common asset pairings include:

• Indices: NDX vs. SPX or US30.
• Forex: EURUSD vs. GBPUSD or DXY.
• Commodities: Gold vs. Silver.
• Crypto: BTCUSD vs. ETHUSD.

Bullish Hidden SMT Divergence

A bullish signal is generated when the primary asset forms a higher low while the correlated asset forms a lower low based on closing prices. This suggests weakening bearish momentum and a potential move to the upside. Traders often look for this pattern near established support zones.

Bearish Hidden SMT Divergence

A bearish signal occurs when the primary asset forms a higher high while the correlated asset forms a lower high. This indicates a loss of bullish momentum and a likely shift to the downside. Traders can use this to validate entries near resistance levels.

Details

Unlike standard SMT (Smart Money Technique) which relies on high and low price points, the Hidden SMT Divergence utilizes closing prices. This method aims to filter out "noise" created by intraday spikes or stop-runs, focusing instead on where the "smart money" settled the price. The script uses fractals to identify pivot points and compares them across symbols fetched via the request.security function. It includes an internal logic check to ensure divergences are identified within a specific lookback window (30 bars) to maintain relevance.

Settings

• Second Symbol: Defines the secondary asset used for correlation comparison (e.g., comparing EURUSD to DXY).
• Divergence Fractal Periods: Sets the number of candles used to identify price pivots. Higher values result in more significant but less frequent signals.
• Show SMT Divergence Line from the Bottom: Toggles the visibility of the dashed line connecting bullish divergence points.
• Show SMT Divergence Label from the Bottom: Displays the "+SMT" label on bullish signals.
• Show SMT Divergence Line from the Top: Toggles the visibility of the dashed line connecting bearish divergence points.
• Show SMT Divergence Label from the Top: Displays the "-SMT" label on bearish signals.
• Type Chart: Switches the display of the secondary asset between a simple Line or a Candle format.

FAQ

How do I access the Hidden SMT Divergence ICT 01 HSMT SMC Technique?

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

Which timeframes work best for this indicator?

While the technique is fractal and works on all timeframes, many SMC traders prefer using it on M15 for intraday entries or H1/H4 for identifying broader swing directions.

Can I compare assets from different exchanges?

Yes, the "Second Symbol" setting allows you to input any ticker available on your platform, allowing for cross-exchange or cross-market analysis.