SMT - Malibu

SMT Correlation Crack Indicator

This indicator detects Smart Money Technique (SMT) divergences between two correlated assets, helping traders identify potential reversal points when the primary asset and comparison symbol show opposite price movements.

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WHAT IT DOES
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• Detects Bearish Divergence: Primary makes Higher High while Compare makes Lower High
• Detects Bullish Divergence: Primary makes Lower Low while Compare makes Higher Low
• Draws divergence lines between swing points automatically
• Optional labels for quick identification

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HOW TO USE
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1. Set your Comparison Symbol (e.g., NQ1! for Nasdaq when trading ES)
2. Adjust Swing Length for sensitivity (lower = more swings, higher = fewer)
3. Customize colors to match your chart theme
4. Enable/disable labels based on your preference

Recommended Pairs:
• ES1! vs NQ1! (S&P 500 vs Nasdaq)
• GC1! vs SI1! (Gold vs Silver)
• EURUSD vs GBPUSD (Forex pairs)

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TRADING CONCEPT

SMT divergence occurs when correlated assets move in opposite directions at swing points. This often indicates institutional activity and can signal potential reversals.

• Bearish Divergence → Potential Short Setup
• Bullish Divergence → Potential Long Setup

Always use with confluence from other SMT elements (Order Blocks, FVGs, Liquidity).

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SETTINGS

• Compare Symbol: Second asset to compare with current chart
• Timeframe: Leave empty to use current chart timeframe
• Swing Length: Swing detection sensitivity (1-20)
• Colors: Customizable for bearish/bullish divergences
• Show Labels: Display BEAR/BULL tags at divergences

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DISCLAIMER

This indicator is for educational purposes only. Trading involves substantial risk. Past performance does not guarantee future results. Always use proper risk management.