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.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.