OPEN-SOURCE SCRIPT
SMT by HDSXN
This script is an advanced indicator designed around **ICT (Inner Circle Trader)** and **Smart Money Concepts (SMC)**, specifically focusing on identifying **SMT (Smart Money Tool) Divergences**.
Here is a detailed breakdown of what this indicator does and its main features:
**1. Core Concept: SMT Divergence Detection**
SMT divergence occurs when correlated assets fail to move in sync. For example, if you are trading the S&P 500 (ES) and it makes a new Higher High, but the Nasdaq (NQ) or Dow Jones (YM) fails to make a Higher High (making a Lower High instead), that is an SMT Divergence. It signals an underlying weakness or strength in the market.
* The script allows you to compare the chart you are currently viewing with up to **three different comparison symbols** simultaneously (defaulting to ES1!, YM1!, and RTY1!).
**2. Methods of Identifying Divergences**
The indicator scans for these divergences using two different approaches:
* **Pivots (Structural Swings):** It uses pivot highs and lows to find major market structure points. It looks for divergences across three different time horizons/lengths: *Primary, Secondary, and Tertiary*. If it finds a structural divergence between the assets, it draws a solid line connecting the swing points.
* **Adjacent Wicks (Micro Divergence):** If enabled, it looks for immediate, candle-by-candle divergences. For instance, if the current candle takes out the high of the previous candle, but the comparison asset's current candle fails to do so.
**3. FVG SMT (Fair Value Gap Divergence)**
This is a unique and advanced feature of this script. It doesn't just look for high/low divergences; it also compares **Fair Value Gaps (FVGs)** across correlated assets.
* The script draws boxes to highlight unmitigated (unfilled) FVGs on your chart.
* If the current asset pulls back and mitigates (touches) its FVG, but the comparison asset fails to reach and mitigate its respective FVG within a certain number of candles, the script flags this as an **"FVG SMT"**.
* It then plots a dotted line and a label pointing out exactly where this FVG divergence occurred.
**4. Visuals and Customization**
* **Lines & Labels:** Automatically draws lines and labels indicating exactly which asset caused the SMT divergence (e.g., drawing a blue line labeled "YM1!" so you know the Dow Jones diverged from your current chart).
* **FVG Boxes:** Draws colored boxes (Teal for Bullish, Maroon for Bearish) to highlight active FVGs, which disappear once price mitigates them.
* **Highly Customizable:** You can toggle each comparison symbol on or off, change line colors, adjust the line width/style, change label sizes, and adjust the exact number of periods used to calculate the Pivots.
**In summary:** It is an automated tool for ICT traders that constantly scans correlated markets in the background to find subtle cracks in market correlation (SMT Divergences) using swing highs/lows and Fair Value Gaps, plotting them directly on your main screen so you don't have to look at multiple charts at once.
Here is a detailed breakdown of what this indicator does and its main features:
**1. Core Concept: SMT Divergence Detection**
SMT divergence occurs when correlated assets fail to move in sync. For example, if you are trading the S&P 500 (ES) and it makes a new Higher High, but the Nasdaq (NQ) or Dow Jones (YM) fails to make a Higher High (making a Lower High instead), that is an SMT Divergence. It signals an underlying weakness or strength in the market.
* The script allows you to compare the chart you are currently viewing with up to **three different comparison symbols** simultaneously (defaulting to ES1!, YM1!, and RTY1!).
**2. Methods of Identifying Divergences**
The indicator scans for these divergences using two different approaches:
* **Pivots (Structural Swings):** It uses pivot highs and lows to find major market structure points. It looks for divergences across three different time horizons/lengths: *Primary, Secondary, and Tertiary*. If it finds a structural divergence between the assets, it draws a solid line connecting the swing points.
* **Adjacent Wicks (Micro Divergence):** If enabled, it looks for immediate, candle-by-candle divergences. For instance, if the current candle takes out the high of the previous candle, but the comparison asset's current candle fails to do so.
**3. FVG SMT (Fair Value Gap Divergence)**
This is a unique and advanced feature of this script. It doesn't just look for high/low divergences; it also compares **Fair Value Gaps (FVGs)** across correlated assets.
* The script draws boxes to highlight unmitigated (unfilled) FVGs on your chart.
* If the current asset pulls back and mitigates (touches) its FVG, but the comparison asset fails to reach and mitigate its respective FVG within a certain number of candles, the script flags this as an **"FVG SMT"**.
* It then plots a dotted line and a label pointing out exactly where this FVG divergence occurred.
**4. Visuals and Customization**
* **Lines & Labels:** Automatically draws lines and labels indicating exactly which asset caused the SMT divergence (e.g., drawing a blue line labeled "YM1!" so you know the Dow Jones diverged from your current chart).
* **FVG Boxes:** Draws colored boxes (Teal for Bullish, Maroon for Bearish) to highlight active FVGs, which disappear once price mitigates them.
* **Highly Customizable:** You can toggle each comparison symbol on or off, change line colors, adjust the line width/style, change label sizes, and adjust the exact number of periods used to calculate the Pivots.
**In summary:** It is an automated tool for ICT traders that constantly scans correlated markets in the background to find subtle cracks in market correlation (SMT Divergences) using swing highs/lows and Fair Value Gaps, plotting them directly on your main screen so you don't have to look at multiple charts at once.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.