SMT Scalping PRO (NQ vs ES)

The SMT Scalping PRO (NQ vs ES) indicator identifies potential short-term market reversals by detecting Smart Money Technique (SMT) divergences between two correlated assets.

Usage

The Usage section focuses on identifying intermarket divergences to spot high-probability turning points. Traders typically apply this indicator to the Nasdaq 100 (NQ) while comparing it to the S&P 500 (ES).

• Bullish SMT: Occurs when the primary asset makes a lower low while the secondary asset makes a higher low (or equal low). This suggests underlying strength and a potential upward reversal.
• Bearish SMT: Occurs when the primary asset makes a higher high while the secondary asset makes a lower high (or equal high). This suggests underlying weakness and a potential downward reversal.

The indicator plots "SMT" labels directly on the chart when these conditions are met, allowing scalpers to quickly identify entries based on institutional footprint analysis.

Details

The script utilizes pivot high and pivot low logic to track swing points across two symbols simultaneously. By requesting data from a secondary symbol (defaulting to ES), the algorithm compares the relative highs and lows of both instruments. A divergence in these swing points is a core concept in institutional trading styles, suggesting that one market is "failing" to confirm the move of the other, often leading to a reversal in the direction of the stronger/weaker asset.

Settings

• Comparison Symbol: Defines the second instrument used for divergence analysis (e.g., ES1!, YM1!, or DXY).
• Swing Sensitivity: Adjusts the lookback period for pivot detection. Lower values result in faster, more frequent signals, while higher values filter for more significant swings.
• Show SMT Labels: Toggles the visibility of the "SMT" text labels on the price action.
• Enable Alerts: Enables or disables the execution of real-time alert notifications.
• Label Customization: Includes options for background colors, text colors, and label sizes (Small, Normal, Large, Huge) to fit various chart layouts.

FAQ

How do I use the Swing Sensitivity setting?

The Swing Sensitivity determines how many bars are required on either side of a high or low to qualify as a "swing." Set this lower for fast-paced scalping on lower timeframes, or higher to capture more macro intermarket shifts.

Which symbols work best with this tool?

While designed for NQ vs. ES, the tool can be used on any highly correlated pairs, such as EURUSD vs. GBPUSD or different crypto assets like BTC vs. ETH.

How can I access SMT Scalping PRO (NQ vs ES)?

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