What is SMT Divergence?
SMT Divergence, from ICT's Smart Money Technique, rests on the idea that correlated markets should make their swing highs and lows together. When one makes a higher high but its peer does not, or one makes a lower low that its peer does not confirm, the obvious move is suspect.
The script compares the chart's swings with a peer symbol, ETH/USDT by default. It marks each divergence with an arrow at the swing and a line joining the two swings on the chart.
This is a closed-source premium script. It runs on Altrady's servers, so only its output reaches your chart and its code is not published.
How to use SMT Divergence
- Bearish SMT. The chart makes a higher high while the peer is lower than at the previous swing high. The new high is not shared, which is read as a sign of weakness.
- Bullish SMT. The chart makes a lower low while the peer is higher than at the previous swing low. The new low is not shared, read as a sign of strength.
- At liquidity. SMT is most often used at a sweep of a prior high or low, as confirmation that the sweep was the turn.
- Choose the right peer. The read only works with a genuinely correlated market. BTC and ETH, or two related indices, are the usual pairs.
Settings
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Peer Symbol | ETH/USDT | The correlated instrument to compare against. Change to match your pair (e.g. ES for NQ, DXY for EUR/USD). |
Structure
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Swing Length | 5 | 2 to 50 | Bars each side to confirm a swing pivot. |
| Swing Filter (ATR) | 0 | 0 to 5 |
Display
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Show Lines | On | A line connecting the two diverging swings. | |
| Max Divergences | 10 | 1 to 50 | |
| Show State Pane | Off |
Colours
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Bullish SMT | #089981 | Lows diverge: bullish. | |
| Bearish SMT | #f23645 | Highs diverge: bearish. |
Alerts: smt_bullish, smt_bearish.
How it works
The script finds confirmed swing highs and lows on the chart's own market. At each new swing, it compares the swing with the previous one of its kind, and compares the peer's price at the same point with the peer's price at the previous swing.
If the chart made a higher high while the peer came in lower, that is a bearish SMT divergence. If the chart made a lower low while the peer came in higher, that is a bullish one. The swings are on the chart's market only; the peer is read at those swing points rather than having swings of its own.
Each divergence fires its alert on the bar the swing is confirmed. Max Divergences keeps the most recent ten on the chart.
Limitations
- Confirmation lag. A swing needs Swing Length bars after it to be confirmed, so a divergence appears that many bars after the high or low.
- The peer is not swing based. The peer's price is read at the chart's swing points, not at its own swing highs and lows, so its true extremes may be a few bars away.
- The default peer is fixed. The default is ETH/USDT. On an ETH chart, or any other market, change Peer Symbol to a market that fits.
- Correlation changes. Markets that usually move together can decouple for a while, and divergences then say little.
- It is not a strategy. A divergence is context, without an entry, stop or target of its own.
Get SMT Divergence
Premium scripts are a one-time purchase in the Altrady marketplace and need a paid Altrady plan to run.
- SMT Divergence $7 This script on its own.
- SMC / ICT bundle $35 7 premium scripts, SMT Divergence included.
- Altrady Complete Suite $109 All 36 premium scripts.
Frequently asked questions
An ICT concept in which two correlated markets disagree at a swing. One makes a new high or low and the other fails to, which is read as the move being engineered rather than genuine.
The Peer Symbol setting, ETH/USDT by default. Set it to whatever market is correlated with the chart you are on.
No. A divergence is only drawn once its swing is confirmed and is not moved afterwards. The trade-off is a delay of Swing Length bars.
Two. smt_bullish fires when lows diverge and smt_bearish when highs diverge.
Yes. SMT Divergence is a closed-source premium script. It runs on Altrady's servers, so only its output reaches your chart and the code is never shared. You buy it once in the Altrady marketplace, on its own, in the SMC / ICT bundle or in the Altrady Complete Suite, and it needs a paid Altrady plan to run. It is also included with your first annual Premium subscription.
Use the Get it in Altrady button on this page to open its listing in the Altrady marketplace. Once it is in your account, open the indicator picker on any chart in Altrady Charts, add SMT Divergence like any other indicator, and set Peer Symbol in its settings panel.