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SMT Divergences

Smart Money Technique (SMT)​

Smart Money Technique (SMT) refers to detecting divergences between two related instruments. The TRN SMT/Divergence Suite enables you to compare markets such as NQ vs. ES or BTCUSDT vs. ETHUSDT, identifying divergences that can reveal subtle shifts in trend dynamics.

For example, if the NQ reaches a new higher high while the ES fails to follow suit and forms a lower high instead, the TRN SMT/Divergence Suite will plot a divergence. Such occurrences suggest that the prevailing trend may be losing momentum, increasing the likelihood of a reversal. Armed with this information, traders can make more informed decisions, potentially improving their trading outcomes.

SMT Divergences

Settings​

Within the TRN SMT/Divergence Suite’s settings, you have the option to select up to two different markets to compute SMT divergences, allowing for more flexible and comprehensive market comparisons.