LumiTraders
LumiTraders

@LumiTraders

4 Tweets 238 reads Jul 19, 2023
SMT DIVERGENCE
You aren’t looking for SMT divergence to take a trade, you use it only around predetermined levels with trade idea in mind. If NQ/YM is making a new LL, while ES/YM is not, this is bullish case. If NQ/YM is making a new HH, while ES/YM is not – bearish case.
BETWEEN 5AM – 9:30AM NY LOCAL TIME SMT DIVERGENCE WILL TAKE PLACE ON ES, NQ, YM, US3O. Once we see SMT divergence take place between this specific time we can look to enter a trade on the ticker that runs liquidity.
I place my trades using the 5-15m TF. Once we have confirmed SMT divergence has taken place and have. We then look for displacement. This will give up the opportunity to enter on a FVG with our SL just below the displacement candle and our TP at the next area of liquidity.

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