OPEN-SOURCE SCRIPT

Liquidity sweep divergence (SMT)

2 340
This script implements a refined version of SMT (Smart Money Technique) divergence, focused specifically on liquidity sweeps between correlated assets rather than simple structural divergence.

Use it on one market:
FOREX: EURUSD + DXY (or GBPUSD + DXY)
CRYPTO: BTC+ETH (BTC + TOTAL3, ETH + TOTAL3)
INDICES: ES + NQ
COMMODITIVES: XAU + XAG (GOLD+SILVER)

Unlike traditional SMT indicators that rely on comparing consecutive swing highs/lows (HH/LL logic), this script detects true liquidity events, where one asset takes liquidity (sweeps a previous swing) while the other fails to do so.

🔍 Core Concept

SMT divergence in this script is defined as:

Bearish SMT
The main chart sweeps a previous swing high (liquidity taken)
The second asset fails to sweep its corresponding swing high
Bullish SMT
The main chart sweeps a previous swing low
The second asset fails to do the same

This reflects asymmetry in liquidity behavior, often interpreted as a sign of weakening trend continuation and potential reversal.

⚙️ How It Works

The script uses:

1. Pivot-based swing detection
Uses confirmed pivots (ta.pivothigh / ta.pivotlow)
Eliminates noise and repaint issues from naive fractal logic
2. Cross-asset synchronization
Swings between assets are matched using a configurable bar offset tolerance
Ensures meaningful comparison between structurally aligned points
3. Liquidity sweep detection
Detects when price:
Breaks a previous swing level (high/low)
Optionally closes back inside (ICT-style wick sweep)
4. Signal filtering

To reduce false SMT signals, the script includes:

ATR-based minimum move filter
Optional wick confirmation (true liquidity grab)
No multi-swing brute-force scanning (only relevant structure is used)
🎯 What Makes This Script Unique
Focuses on liquidity sweeps, not just HH/LL divergence
Avoids common SMT noise from weak structural comparisons
Uses minimal and efficient logic (O(1)), no heavy loops
Produces clean and trade-relevant signals, not visual clutter
Designed with algorithmic trading compatibility in mind
📊 Visual Features
Clean SMT labels (Bullish / Bearish)
Optional connecting lines showing the sweep move
Background highlighting for quick contextual awareness
Transparent styling to avoid chart obstruction
⚙️ Inputs
Second Asset – symbol used for SMT comparison
Pivot Length – controls swing sensitivity
Max Sync Offset – allowed mismatch between swing points (in bars)
Wick Sweep Filter – require close back inside level (ICT-style)
ATR Filter – minimum sweep strength
Show Lines – toggle visual connections
🧠 How to Use

This indicator is best used in:

Reversal zones
Liquidity pools (equal highs/lows, prior highs/lows)
Session highs/lows (London / NY)
Typical workflow:
Identify SMT signal
Wait for confirmation:
Break of structure (BOS)
Displacement move
Execute entry in direction of SMT
⚠️ Notes
Signals appear at the moment of liquidity sweep, not at pivot formation
This script is non-repainting, as it uses confirmed pivots
SMT is not a standalone strategy — use with market structure
🌍 Дополнительно (RU — для твоей аудитории)

Этот индикатор реализует правильный SMT, основанный не на HH/LL, а на снятии ликвидности.

Ключевая идея:

Один актив забирает ликвидность (пробивает свинг)
Второй — нет
→ это и есть настоящий SMT

В отличие от большинства индикаторов:

нет мусорных сигналов
нет перебора всех свингов
используется только актуальная структура

Лучше всего работает:

на хаях/лоу сессий
на уровнях ликвидности
в связке с BOS / FVG

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