Understanding SMT Divergence :
A Thread ๐งต
A Thread ๐งต
Smart Money Correlation:
When and where to expect SMT
When and where to expect SMT
USDX SMT DIVERGENCE:
Knowing market condition is very important.
Knowing market condition is very important.
When one pair shows lower lows while the other doesn't reach higher highs as expected due to their inverse correlation, it indicates SMT Divergence.
This suggests significant accumulation or consolidation preceding a major move in the opposite direction.
This suggests significant accumulation or consolidation preceding a major move in the opposite direction.
CORRELATED PAIR SMT DIVERGENCE:
BULLISH SMT DIVERGENCE
BULLISH SMT DIVERGENCE
Take note of the pair that doesn't make a lower low. The idea is: if a pair avoids dropping lower, it indicates buying activity and reluctance to decline.
This essentially reflects "Demand in Operation," suggesting an anticipation of higher prices.
This essentially reflects "Demand in Operation," suggesting an anticipation of higher prices.
Bearish SMT DIVERGENCE:
Always short pair which fails to make Higher High.
Credits to respected @I_Am_The_ICT and others for their insights. I hope this explanation has made understanding SMT easier. If it has, please show appreciation for the post. โค๏ธ
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