SMT Divergences

SMT Divergences watches your chart alongside two user-selected comparison tickers — typically ES and YM — and labels every SMT divergence: a matched swing point where one instrument breaks its level while its correlated partner fails to follow. Swings are detected on all series, aligned in time, and compared automatically, so the cracks between markets that stay invisible on a single chart are marked the moment they confirm.

How to Trade the SMT Divergences?

• Divergence labels: printed when a swing on the chart ticker coincides with a swing on a comparison ticker and the two disagree — one making a new extreme, the other holding.
• Swing confirmation: swing points confirm after a set number of candles (3 by default), so labels appear once structure has settled rather than mid-formation.
• Dashboard percentages: show how often swing highs and swing lows have produced SMT divergences against each ticker — a live base rate for the signal you are trading.

Because confirmation is required, the tool lends itself to studying how price behaves after a divergence rather than chasing one tick by tick. Index partners like ES and YM are the classic pairing, but the comparison tickers are yours to choose, so any correlated pair can be monitored.

SMT Divergences Settings

• Swing Lookback: the calculation window used to detect swing points — larger values isolate broader, more significant swings.
• Comparison Ticker: the external symbols checked for divergences against the chart, two of them selectable.
• Show Dashboard / Location / Size: toggle the statistics table and control where and how large it renders.

Frequently Asked Questions

What exactly gets flagged as a divergence?

A swing high or low on your chart that aligns with a swing on a comparison ticker where the two instruments disagree about direction. Both swings must confirm first, which keeps the chart readable and filters out half-formed structure.

How is this different from oscillator divergence?

Oscillator divergence compares price against a momentum reading on the same instrument; SMT compares two instruments against each other at matching swings. For the single-market variety, Hidden Divergence works that style, and the two reads can complement each other at the same level.

How can I use SMT Divergences for free?

The indicator belongs to the LuxAlgo Library's free collection. Load it from this page — including straight into Quant, LuxAlgo's AI — and check the dashboard's divergence frequencies on your pair before trading them.