#Education
Understanding “SMART MONEY TOOL” (SMT)
It’s a tool to asses the strength between correlated pairs and should be used as CONFLUENCE only.
Credits to my mentor @Ali_Khan_ICT & @The_ICD_Academy
Just tried to keep it simple in this thread.
Likes & RT appreciated
Understanding “SMART MONEY TOOL” (SMT)
It’s a tool to asses the strength between correlated pairs and should be used as CONFLUENCE only.
Credits to my mentor @Ali_Khan_ICT & @The_ICD_Academy
Just tried to keep it simple in this thread.
Likes & RT appreciated
Both Euro and GBP made Lower Low so there is no crack in correlation. Which means SMT is not valid
Here Euro made Lower Low and GBP Made Higher Low. We have a crack in Correlation. GBP unwilling to go lower which is sign of institutional accumulation. GBP has higher relative strength than Euro.
Which makes SMT valid
Which makes SMT valid
Now let’s see inversely correlated pairs.
Here DXY made Higher High and Euro made Lower Low taking both BSL and SSL which had no crack in correlation. So SMT is not valid .
Here DXY made Higher High and Euro made Lower Low taking both BSL and SSL which had no crack in correlation. So SMT is not valid .
Here DXY made Higher High and Euro Made Higher Low, which makes crack in correlation. Euro is unwilling to go lower , signs of institutional accumulation. SMT valid !
Now let’s see DXY vs Euro vs GBP.
Higher high in DXY, Euro is expected to make Lower Low and GBP is also expected to make Lower Low but when GBP failed to Make Lower Low and fails to take sell side liquidity . GBP stronger than Euro.
Higher high in DXY, Euro is expected to make Lower Low and GBP is also expected to make Lower Low but when GBP failed to Make Lower Low and fails to take sell side liquidity . GBP stronger than Euro.
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