Hidden SMT Divergence Indicator [MT5] Smart Money Correlation

The Hidden SMT Divergence Indicator (MT5) is an advanced MetaTrader 5 tool that detects subtle divergences between three correlated stock indices (DJI, SP500, ND100) using ICT Smart Money concepts. By analyzing relative strength/weakness across these instruments, it identifies potential trend reversals and liquidity shifts before they occur.

You can download it from this link:
https://cdn.tradingfinder.com/file/2...5-by-tflab.zip

You can also access the MetaTrader 4 version of this indicator through this page:
https://www.cryptocraft.com/thread/1...ey-correlation
For instructions on how to install:

https://www.forexfactory.com/thread/...-in-metatrader



Key Specifications

1. Category: ICT - Smart Money - Liquidity
2. Platform: MetaTrader 5
3. Skill Level: Advanced (ICT Knowledge Required)
4. Indicator Type: Reversal & Continuation
5. Timeframe: Multi-Timeframe (M15-H4 Recommended)
6. Trading Style: Intraday & Swing Trading
7. Markets: Crypto, Stocks (DJI, SP500, ND100), Indices

Trading Signals Explained
Bullish Divergence Pattern

1. Scenario: DJI/SP500 make lower lows while ND100 forms higher lows
2. Interpretation: Smart Money accumulating ND100 despite broader weakness
3. Action: Potential long opportunity in ND100
4. Visual: Green divergence lines connecting swing points

Bearish Divergence Pattern

1. Scenario: DJI/SP500 show higher highs while ND100 prints lower highs
2. Interpretation: Institutional distribution in ND100
3. Action: Consider short positions in weaker index
4. Visual: Red divergence markers highlighting price discrepancies

Optimal Configuration

1. Symbol Setup:
   1. First Symbol: DJI (Primary benchmark)
   2. Second Symbol: SP500 (Correlated index)
   3. Third Symbol: ND100 (Tech-heavy comparator)

2. Detection Settings:
   1. Swing Point Sensitivity: 2-3 candles for intraday
   2. Auto Pushed Symbol: Enabled for weakest/strongest detection

3. Visual Preferences:
   1. Line Colors: Customizable for clear differentiation
   2. Alert Types: Popup/Sound for divergence confirmation

Pro Trading Strategies

1. Liquidity Grab Confirmation:
   1. Wait for divergence + FVG (Fair Value Gap) alignment
   2. Enter on retest of identified liquidity zone

2. Session-Based Trading:
   1. NYSE Open (09:30 EST) often shows clearest divergences
   2. Combine with volume profile for confirmation

3. Multi-Timeframe Analysis:
   1. H1 for primary trend
   2. M15 for precise entries

Important Notes

1. Must be applied to First Symbol's chart initially
2. Works best with correlated assets (avoid mixing unrelated instruments)
3. Requires 3+ months of backtesting for optimal parameter tuning

Why Traders Choose This Tool

1. Identifies institutional order flow through intermarket analysis
2. Provides early warnings of sector rotations
3. Visualizes relative strength between major indices
4. Complements other ICT tools like Kill Zones/Liquidity Pools

This indicator transforms complex intermarket analysis into clear, actionable signals - giving retail traders institutional-grade insight into index relationships.