OPEN-SOURCE SCRIPT
cracks in correlation (smt)
introducing what (in my opinion) might be the best open-source smt divergence indicator yet!
as you may know, an SMT divergence forms when 2 correlated pairs' structure diverges (i.e. NQ makes a higher high and ES makes a lower high). when this happens, smart money traders take advantage of the "crack in correlation" and enter positions looking for the assets to converge again. with this indicator, you will NEVER miss an smt again!
allow me to bore you with the technicals for a bit. while most smt indicators only compare 2 pivots, this one (using the amazing ZigZag library by Trendoscope), allows us to compare up to 128 different pivots at once, ensuring that every high is compared with every other high. this setting is controlled using the "memory buffer" counter inside the inputs of the indicator. raising this setting will make the indicator take more time to load, but will also show you more potential smts. using this zigzag, we're able to check whether the corresponding asset's structure is the same as the current one.
all of the other settings should be self-explanatory, but should you have any questions, you can reach out to me in the comments below.
as this indicator is open-source, feel free to reuse it as you wish, but if you are re-using significant portions of it, please credit me. it would mean a lot to me :>
thank you for using my indicator. happy trading!
as you may know, an SMT divergence forms when 2 correlated pairs' structure diverges (i.e. NQ makes a higher high and ES makes a lower high). when this happens, smart money traders take advantage of the "crack in correlation" and enter positions looking for the assets to converge again. with this indicator, you will NEVER miss an smt again!
allow me to bore you with the technicals for a bit. while most smt indicators only compare 2 pivots, this one (using the amazing ZigZag library by Trendoscope), allows us to compare up to 128 different pivots at once, ensuring that every high is compared with every other high. this setting is controlled using the "memory buffer" counter inside the inputs of the indicator. raising this setting will make the indicator take more time to load, but will also show you more potential smts. using this zigzag, we're able to check whether the corresponding asset's structure is the same as the current one.
all of the other settings should be self-explanatory, but should you have any questions, you can reach out to me in the comments below.
as this indicator is open-source, feel free to reuse it as you wish, but if you are re-using significant portions of it, please credit me. it would mean a lot to me :>
thank you for using my indicator. happy trading!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
@k4sual everywhere
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
@k4sual everywhere
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.