SMT Divergence [TakingProphets]

The SMT (Smart Money Technique) Divergence indicator identifies potential market manipulation and smart money footprints by comparing price action between correlated instruments. It uses a dual-detection system to catch both frequent local SMTs and larger structural SMTs:

• Primary detection uses a shorter lookback period (default 5) to identify common SMT patterns
• Secondary detection uses a longer lookback period (default 8) to catch larger structural SMTs
• Automatically filters significant moves to prevent noise
• Labels are placed clearly outside of price action for better visibility
• Toggle between showing all SMTs or only significant liquidity sweeps

Compare any two instruments to spot divergences in their price action. Particularly useful for:
- Futures vs Spot markets
- Related currency pairs
- Index vs its components
- Any correlated instruments

Default settings are optimized for intraday trading but can be adjusted for different timeframes.

Note: This indicator works best when comparing closely correlated instruments and should be used alongside other technical analysis tools.