SMT-Fill

The SMT-Fill indicator identifies correlation-based fair value gap (FVG) divergences by detecting when correlated assets interact differently with simultaneous imbalances. It tracks whether each asset in a triad fills its respective gap at the high, midpoint, or full-fill levels, highlighting "cracks" in correlation that often precede high-probability price reactions.

Usage

The Usage section describes how the script can be used to identify specific market narratives based on cross-asset imbalances.

Market Narrative and Bias

The tool is primarily used to confirm institutional interest or market manipulation. For instance, in a bullish scenario, if the chart asset touches its FVG while a correlated asset fails to do so (SMT-Fill divergence), it suggests the chart asset is stronger and potentially ready for a reversal. This can be used to frame a Higher Time Frame (HTF) bias or to refine Lower Time Frame (LTF) entries.

Asset Triads

The indicator uses a triad system to compare correlations. By default, the Auto Triad setting automatically detects the correct correlated assets:

• Index Futures: NQ / ES / YM
• Forex: EURUSD / GBPUSD / DXY
• Metals: XAUUSD / XAGUSD / Copper
• Crypto: BTCUSD / ETHUSD / XRPUSD

Divergence Variants

The script identifies three specific types of SMT-Fill divergences:

• Touch Divergence (Variant 1): One asset enters the gap (touches the first boundary) while another does not.
• Midpoint Divergence (Variant 2): One asset reaches the 50% equilibrium of its gap while another fails to reach that level.
• Full Fill Divergence (Variant 3): One asset completely closes its gap while another leaves an unfilled portion.

Details

The script executes by requesting price data from two additional correlated assets using request.security. It verifies if a 3-bar FVG formed on all selected assets at the exact same time.

Interaction Tracking

Once a concurrent FVG is established, the script maintains a "traded" flag for the high, low, and midpoint of each asset's gap. If at any point the "traded" status of the chart asset differs from the correlated assets, a divergence is flagged.

Gap Lifecycle

To maintain chart clarity, the indicator manages the lifecycle of each gap:

1. Detection: Triggered by simultaneous FVG formation across the triad.
2. Monitoring: Tracking price movement relative to gap boundaries.
3. Visualization: Drawing colored boxes and SMT-Fill lines only when a divergence is active.
4. Closure: Automatically deleting gaps once price closes completely through the imbalance.

Settings

Asset Selection

• Auto Triad: Automatically assigns correlated assets based on the current ticker.
• Asset 1/2/3: Manual symbol inputs for custom correlation triads.

General Settings

• Maximum Gaps: Controls the maximum number of historical gaps tracked on the chart.
• Box Extension: Sets how many bars into the future the gap box extends while price is interacting.

Gap Display

• Bullish/Bearish Gaps: Toggles visibility for specific gap directions.
• Gap Color: Customizes the fill color for bullish and bearish imbalances.
• Show Gap Borders: Adds a border around the FVG boxes for better visibility.

SMT-F Line

• SMT-F Divergence Line: Toggles the horizontal line at the exact level of the correlation crack.
• Line Style/Width: Customizes the visual appearance of the divergence line.

Filtering & Labels

• Only Show Active Gaps: When enabled, the indicator only displays gaps that price is currently interacting with.
• Show Asset Label: Displays the name of the specific asset causing the divergence.

FAQ

How does this differ from a standard SMT divergence? A standard SMT compares swing highs and lows, while the SMT-Fill specifically compares how correlated assets treat internal price imbalances (FVGs) formed at the same time.

Why do gaps disappear from my chart? The indicator automatically removes gaps once they are "closed" (price closes through the gap boundary) to keep the chart focused on current, relevant imbalances.

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