Unlock the secret to reading market strength like a pro:
Here’s how I use Smart Money Technique (SMT) to track relative strength between correlated assets—and nail the highest-probability setups before they unfold.
Let’s dive into the power of SMT.
A Thread 🧵
Here’s how I use Smart Money Technique (SMT) to track relative strength between correlated assets—and nail the highest-probability setups before they unfold.
Let’s dive into the power of SMT.
A Thread 🧵
Remember what I taught you in my Unicorn video.
Price only reverses in two ways: Breaker swings and Failure swings.
This also applies in SMT, where we measure the pair’s strength, whether it is strong enough to take the liquidity or fail to do so.
We can then determine which pair to trade, depending on the market context.
Price only reverses in two ways: Breaker swings and Failure swings.
This also applies in SMT, where we measure the pair’s strength, whether it is strong enough to take the liquidity or fail to do so.
We can then determine which pair to trade, depending on the market context.
SMTs happen at HTF key levels such as:
-Swing Highs/Lows
-FVGs
-Previous Candle Highs/Lows
Using these key levels, we can then measure if one pair is stronger than the other. x.com
-Swing Highs/Lows
-FVGs
-Previous Candle Highs/Lows
Using these key levels, we can then measure if one pair is stronger than the other. x.com
These are the key correlations I monitor every week for high-probability setups.
Positive Correlation: When one moves, the other often follows in the same direction.
Negative Correlation: When one moves, the other tends to move in the opposite direction.
These relationships help us forecast strength and weaknesses in the market.
Positive Correlation: When one moves, the other often follows in the same direction.
Negative Correlation: When one moves, the other tends to move in the opposite direction.
These relationships help us forecast strength and weaknesses in the market.
With all that understanding, here's how to apply SMT to your model.
Personally, I use the unicorn model, so here's how I’ll apply it.
For example, I'm trading indices, and the bias is bullish.
I'll choose the stronger pair which made the failure swing and look for my model there.
Personally, I use the unicorn model, so here's how I’ll apply it.
For example, I'm trading indices, and the bias is bullish.
I'll choose the stronger pair which made the failure swing and look for my model there.
SMT works because it shows you which pair has stronger movement than the other.
With that said, you'll want to buy on the stronger pair and sell on the weaker pair, depending on the bias. x.com
With that said, you'll want to buy on the stronger pair and sell on the weaker pair, depending on the bias. x.com
So, for the SMT protocol, I want you to save this:
1) SMT shows you which pair is stronger/weaker.
2)Look for longs on strong pairs and look for shorts on weak pairs.
3)Trade your model aligned with the bias with the confluence of SMT.
1) SMT shows you which pair is stronger/weaker.
2)Look for longs on strong pairs and look for shorts on weak pairs.
3)Trade your model aligned with the bias with the confluence of SMT.
I hope you’ve found this insightful!
Thanks for reading until the end!
Bookmark, Retweet, Like and Comment under this thread! Would greatly appreciate that💚 x.com
Thanks for reading until the end!
Bookmark, Retweet, Like and Comment under this thread! Would greatly appreciate that💚 x.com
If you are struggling and feeling lost,
Join my FREE community and I'll help you get on the right path. (Promise)
Click here to join: discord.gg
Once again, I appreciate you reading this far! Have a great week!💚 x.com
Join my FREE community and I'll help you get on the right path. (Promise)
Click here to join: discord.gg
Once again, I appreciate you reading this far! Have a great week!💚 x.com
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